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Modern day society never questions why we pay a visit to the doctors when we are sick; because they are the specialists in medicine and can treat people who are ill. But when it comes to personal finance, what is it that deters people from using specialists?
The mentality that “you can do everything yourself” is common and understandably so because if you don’t know how to do something or where to start, someone attending your next family BBQ will.
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However the reality is, the market is constantly changing, whether that be tax rulings, state or federal legislations, property markets in the state you’re living in as well as interstate markets. Who’s to say that what your uncle did 20 years ago which made him hundreds of thousands, is going to work exactly the same for you?
At this time of year when it is time to complete your tax returns, many of us will shortlist the accountants based on two things:
1. Who can obtain the biggest tax refund for you; and
2. Who’s going to charge you the cheapest fee
Little consideration is given to the possibility of “real advice” and many are too short-sighted to see past the additional few hundred dollars they might charge in actually sitting down with you to review your current position and discuss tax strategies that would suit your long term goals and save you thousands of dollars in the medium to long term.
Some examples include:
• Who’s name should I buy the property in, not just for gearing benefits but asset protection?
• What does it mean to borrow 105% of the property purchase and how does that help me focus on reducing my non-deductible debt?
• How do I know which property to nominate as my principal place of residence (PPR)?
The same thing can be said for a buyers’ advocate whose role is to buy a property that meets the criteria of your individual brief and also buy the property under market value.
Some of you will cough at this initially and think your DIY research will be better than most but the value that buyers’ advocates can add is their expertise in the market (after all it is their job and what they do day in and day out) but more importantly the relationships that they have and build with real estate agents and their broader network.
Have you ever wondered why some properties are sold before you can even make it to the open for inspection? Off market transactions are common and occur when real estate agents and buyers’ advocates marry up happy sellers and buyers without the general public even knowing.
At the end of the day, what you don’t know, you don’t know. The question is, are you bold enough to find out? There will be some instances where a specialist may not be right for everyone but don’t assume that you know everything. Today I encourage you to reach out and go and speak to a specialist in the field of personal finance. Sit down with them and ask them how they can add value to you.
As a young investor with a portfolio of four investment properties across multiple states, I’ve learnt my mistake by not using specialists so at the very least come and meet with me so you can learn from my mistakes too.
