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From: Tony L


Can anybody recommend a financial advisor in Melbourne that has a good understanding of property investment, rather than simply shares and managed funds?
 
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Reply: 1
From: Dan D


Anthony,

I've spoken so far with 4 financial planners and all of them were either into shares and managed funds or into marketing properties in new developments.

Not one could discuss with me the property investment field at any breadth or depth. Their commission came through selling these properties, not in discussing with me which suburbs or types of houses that would be good investment propositions either from the rental return or CG perspective - unless these suburbs contained their new developments.

All in all, I've been very disappointed with financial planners. It does seem to be the case of having to educate yourself and be your own best financial planner. The best thing to do in my opinion is to educate yourself, and find a good accountant who is actively involved in property investment personally.

Dan.
 
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Reply: 1.1
From: Gail H


Hi,

If there is one in Melbourne, then I would really love to hear about it. I had an appointment with an advisor with Westpac private and ended up walking out on the interview after she maintained that my interest in direct property investment was misplaced,and that only managed funds were worthwhile. We actually ended up having a big fight. Another one told my friend that she should completely pay off her PPOR before even considering purchasing an IP.

I think the forum + good mortgage broker + good IP accountant + the odd seminar with someone like Uncle Steve Navra is the best combination.

Good luck (and let us know if you find one)

Gail
 
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Reply: 1.1.1
From: Tibor Bode


Regarding to financial planners, it is definitely worth to read "The role of financial advisors" on page 40 in Jan Somers' latest book, More wealth from residential property. It is very clearly explained. Basically the CAN NOT give you advise on property (apart from in managed funds) and the most likely reason for it that they have not figured out how to make money on it. This is why I was furious when the lender's solicitors forced me to get financial advise (cover their own a...) so my accountant finally signed it (albeit I know about 10 times more about property than she does). I also had to for out another $330 for "legal advice" (solicitor certificate regarding to guarantor) now is around the 4th time that we pay for the same useless rubbish. Unfortunately the legal profession is trying to create another monster (which makes money for them of course). Has anyone had similar experience?
I am thinking to lobby my MP to standardize the property legal requirements as it i s getting ridiculous that every time a firm wants to cover their back side (usually you are fully committed at this stage) they force you to take "legal advice" on the same matter, instead of providing a once and for all certificate which you can use or that you can waive the right for getting it. It is rather annoying and expensive.

Tibor
 
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Reply: 1.1.1.1
From: Manny B


Howdy there,

my accountant (who is also a qualified financial advisor) is part of the Winchombe & Carson's group & owns quite a few IPs himself (houses, shops even carparks)... he is someone I would highly recommend (he recommended I buy more IPs a year or so ago when doing my taxes). I sent a friend of mine earlier in the year & he re-arranged his IP loans (I/O for IPs, P&I for PPOR, etc.) & knows his stuff... he is the western suburbs of Melb, if interested e-mail me on [email protected] & I'll give you the contact details...

Manny.
 
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Reply: 1.1.1.1.1
From: Gail H


Hi,

Just a quick word to defend the legal profession against Tibor's understandable complaints. Well someone has to do it. Don't blame the legal profession for requiring that prospective guarantors get independent legal advice. The courts introduced this requirement in a series of landmark cases which overturned a number of guarantees, partially on the basis that the guarantors had not had independent advice about the obligations they were taking on. Lawyers have no choice but to implement this approach (or they would be sued!)

Gail
 
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Reply: 1.1.1.1.1.1
From: Tibor Bode


Gail,

While I understand that the lawyers just do what they are told, but it is usually also the legal people who draw up (politicians and their legal departments), implement and interpret (solicitors, lawyers, courts) the law and while a couple of smart alexes (no win no fee which already completely stuffed up the liability insurance area and its effects can be seen widely), the same people just have absolutely no interest to simp-lify the requirements, hence reduce the cost as they are part of the system which milks RE investors (State stamp duties and various garbage taxes, new compliance requirements, etc).
Why it is not possible to pay for once for an "overall" guarantee or to give up your right to use some smart alec lawyer who tells it is your RIGHT to use "I did not understand what I was reading, signing, etc"
This leads to the same problems as it was in liability insurance. At the end of the day the consumer pays for this in higher insurance premiums, rents, etc. Then suddenly the cost would not sky balloon (all companies are looking at how to REDUCE their cost) and the legal profession would not have a free ride. One firm wanted to charge me $1000 to fill out 2 pages of that paper!!! What can one call it apart from a blatant rip-off? I finally had to pay $350 for absolutely nothing. It just does not make sense.

Tibor
 
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Reply: 1.1.1.1.1.1.1
From: Jas


> Why it is not possible to pay for once for an "overall" guarantee or
to
> give up your right to use some smart alec lawyer who tells it is your
> RIGHT to use "I did not understand what I was reading, signing, etc"

While I'm annoyed at it too, its held up one deal as they had to read
and consider all the documents for a few days, they can't change it.

If you sign some agreement saying you give up further rights, you can
still take whoever to court. Simply, you can't sign your rights away.
I used to volunteer for a sporting organisation, and we had to get
liability wavier signatures. They're not worth the paper they're
written on either.

Jas
 
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Reply: 1.1.1.1.1.1.1.1
From: Tibor Bode


OK Jas, I can not give up my right, but in this case the other option (or something else that gives the same end result) should be available. It is not only annoying but also very time consuming and expensive.
I just had to run around to find another JP to sign some documents what the solicitor for the cost "overlooked" to sign and then express post it back for settlement.
In the US there is something RK is talking about regarding to sophisticated (or whatever fancy term is used) investor which once reached allows to do certain things. Why the same can not be done via a stat dec signed by the party in which is stated that the investors understands the terms and experienced enough not to require "legal advice"? Even my accountant agreed when she signed the "financial advice" that I know much more about property than she does. It is to me just simply bloodyminded buearocracy, which I hate deeply from my heart.

Tibor
 
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Reply: 1.1.1.1.1.1.1.1.1
From: Jas


> From: "Tibor Bode" <[email protected]>
>
> OK Jas, I can not give up my right, but in this case the other option
(or
> something else that gives the same end result) should be available. It
is
> not only annoying but also very time consuming and expensive.

It should be available, but it won't be in the current climate. The
government wants to protect silly investors from sharks. That means
it'll insist on having this kind of thing done.

However, not everyone wants a signed paper. On refinancing recently
with the same bank, I didn't need to sign a second time. Another deal I
did a while ago with a small mortgage originator - again they had
nothing for me to sign. It was nice :)

Jas
 
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