Whether you are a property investing novice or a seasoned property investor, one thing is certain: to attain success in property investing, you’ll need a team of professionals to help you. Why? Because it’s impossible to do everything on your own.
With legal and financial considerations and a considerable amount of paperwork required to structure your property investment deal, you’ll need to assemble what we consider your “Ace Team”.
These are the key players in your property investment team that will have the required specialist experience and technical knowledge to help you to find your ideal property and make the deal happen.
Here are the key personnel that you will need to help you in your property investing efforts:
1. Property agents
With a plethora of online listings from various property search websites, you can no doubt conduct your investment property hunt on your own. But if you’re a busy individual with career and family demands consuming your time, having a trusted property agent to narrow down the property search can save you a lot of time.
If you’re looking at industrial property investment, then having a property agent with experience in this asset class is important. They’ll know the ins and outs of the local market, are savvy in price negotiations and know how to distinguish a good unit from a bad one. Through their connections and years of experience in the industry, they may even know of hidden gems or off-market deals.
Having an agent who is skilled in discovering potentially profitable investments and who knows how to secure the best price for you will help you to make a worthy return on your property investment.
2. Mortgage brokers
The mortgage broker is another important member that should be on your Ace Team. An experienced mortgage broker will know how and where to source for the best interest rates and how to secure favourable loan terms. They should have access to a wide range of loan platforms and will help you to research and shortlist loans that fit your needs.
Your mortgage broker should not only have an understanding of the lending market outlook but should also have a holistic understanding of your investment portfolio, financial profile and investment goals.
If you intend to go into property investment for the long term, you should work together with a broker that is able to advise you on your financial holdings and structure your loans so that you can grow property portfolio without taking on too much risk. An experienced mortgage broker should also have good working relationships with banks and should know how to assist you with your loan application to maximise your chances of approval.
Purchasing an investment property will involve drawing up several legal documents and contracts – with the bank, with the seller or with a tenant. There will be a lot of legal or technical jargon. Clauses and terms can be complex and you may need a lawyer to help explain these to you.
Before you sign your legal documents or contracts, it’s always a good idea to have a legal professional check that all the terms, conditions or clauses are accurate. Your lawyer should also do proper due diligence to ensure that you do not get caught out by unfavourable clauses. As your legal representative, your lawyer needs to work in your best interest and they should advise you on your risks, liabilities and highlight any contentious terms. This will prevent you from into unexpected losses.
If you have portfolio of several investment properties, then getting an accountant on board will help make your life a lot easier. This is because you’ll need to keep track of the amount of rental income you are making from your property, your monthly loan and interest payments and expenses and other deductions involved in renting out the property. All this will need to be tabulated to determine your annual taxes. Several factors will also need be considered, such as how your investment holding is structured.
Having an accountant will help you to keep your financial and tax affairs in order and ensure that your records are accurately kept.