Mortgage Broker, Accountant or Lawyer

M

megamort

Good morning all,

I am looking for a Broker in Sydney for my first PPOR but would like to
set up the right structure(ie trust, smsf etc) for future investments so...

1) Do I see a Broker for this? Are they able to provide advice on this or am I better off speaking to an Accountant or Lawyer?

2) Is it better to go to an Accountant/Lawyer with a team of brokers or see them independently to avoid any conflict of interests.(although I am not sure there is one)

Thank you in advance!
 
do your own research first, so you know the right questions to ask.

Each of the professions you have mentioned might think they can give you advice on structure, and it may be you need andvice from all 3.

But do some research first so you can sift through the information better, and know the questions you need answers to.

(What is the best structure to purchase a PPOR in isnt detailed a question enough if you ask me).
 
Hey Megamort,

Lawyers are best placed for advice on structuring - but before you do that its probably best to do some research as tobe suggested. Somersoft is a great tool to help through that procees. If your well researched, a lawyer may not be all that necessary at this point but will be incredibly valuable when your a little down the track of your investment journey.

A broker will get you access to finance and set up your loans correctly. This is pretty important if your looking to create a portfolio - correct loan structuring and ordering of lenders can effect your ability to purchase, particularly down the track.

An accountant - well i only use mine around tax time - but they're great for explaining tax implications. THere may be some crossover between the three, although brokers arent legally allowed to provide taxation advice (unless they're qualified to do so).

Cheers,
Redom
 
You also might find you wont get a direct answer.

The accounant will want one thing to minimise tax, the lawyer another to mitigate risk, and the broker a third to allow for more finance options etc.


You will need to compromise somewhere. What makes you think not buying in just your personal names wont suit?
 
Hmm personal choice about the separation. I'd personally separate a few members from your 'team' for conflict of interest purposes - i didn't do this when i started, but am doing it now.

Its also quite rare for someone to be an expert across all three and do it as well as someone that specialises.
 
Mr. Fabulous said:
megamort, talk to Terry Waugh (Terry_w on here), he is both a mortgage broker and a lawyer and a good bloke to boot.

You can find his contact deets on his website here: http://www.loan-experts.com.au/
Click to expand...

As above, Terry does both MB and Legal, he has a team that handles all types of legal work now.

You will need to discuss your setup with both a lawyer and accountant to come up with the best solution for yourself. Each will give you their 2 cents in their field. The lawyer will focus on trying to cover your ***, the accountant on maximising your tax deductions. It is up to you to inform yourself and find the middle ground.
 
I find that its better to be proficient in some things and knowledgeable in others and allow the other expert to do their job. But by working together there are no gaps. In those areas I work with the other person- For example I have worked with Terry and we do refer issues to each other. He is specialist in certain areas and I value knowing it will be done well and wont reflect on me.

I recently had a SMSF client do a SMSF borrowing but the SMSF needed to be setup, rollovers etc. The mortgage broker Shahin of Elite Finance Broking (from SS) and I both worked very hard to each do what we are good at to get it done cheaply, efficiently and well in advance of the contract date. The lawyer (also SS) was then ready and it settled within 43 days. No hickups. Not bad for a SMSF formation and loan from scratch.

Agree on the conflict of interest issue. It can be a serious problem in property. You want to avoid a one stop shop in some instances. In SMSFs there are many who worry me. They facilitate the loan, the property, the setup and the advice and the audit and the loan etc...Its hardly independent. The lines between them and other providers is blurred. No prudential protection either. One of the reasons why I refuse to assist with sale of any property despite the revenue that could be earned even if I disclosed it.
 
megamort said:
Good morning all,

I am looking for a Broker in Sydney for my first PPOR but would like to
set up the right structure(ie trust, smsf etc) for future investments so...

1) Do I see a Broker for this? Are they able to provide advice on this or am I better off speaking to an Accountant or Lawyer?

2) Is it better to go to an Accountant/Lawyer with a team of brokers or see them independently to avoid any conflict of interests.(although I am not sure there is one)

Thank you in advance!
Click to expand...

Hello Megamort!

Can I suggest you start the discussion here and then you will have some starting base points for your questions to the various professionals.
 
Agree with Marty - SS is a great tool to pick the brains of industry experts. If your worried about privacy, perhaps you could generalise your scenario. :)
 
tobe said:
do your own research first, so you know the right questions to ask.

Each of the professions you have mentioned might think they can give you advice on structure, and it may be you need andvice from all 3.

But do some research first so you can sift through the information better, and know the questions you need answers to.

(What is the best structure to purchase a PPOR in isnt detailed a question enough if you ask me).
Click to expand...



Perhaps a broker is a good start since they are able to give advice on structure(for future purchases) as what you mentioned. And approach an accountant or lawyer when I am ready?
 
That's how i'd go about it (but I may be biased given my role). If you know your own personal funding situation, its either broker or lawyer. For investments, an accountant is likely to be more useful.

But for a PPOR purchase, i'd go to a finance expert. This can either be a good operator at a bank or a good broker.

Cheers,
Red
 
nhg said:
As above, Terry does both MB and Legal, he has a team that handles all types of legal work now.

You will need to discuss your setup with both a lawyer and accountant to come up with the best solution for yourself. Each will give you their 2 cents in their field. The lawyer will focus on trying to cover your ***, the accountant on maximising your tax deductions. It is up to you to inform yourself and find the middle ground.
Click to expand...


Thanks nhg!
 
Paul@PFI said:
I find that its better to be proficient in some things and knowledgeable in others and allow the other expert to do their job. But by working together there are no gaps. In those areas I work with the other person- For example I have worked with Terry and we do refer issues to each other. He is specialist in certain areas and I value knowing it will be done well and wont reflect on me.

I recently had a SMSF client do a SMSF borrowing but the SMSF needed to be setup, rollovers etc. The mortgage broker Shahin of Elite Finance Broking (from SS) and I both worked very hard to each do what we are good at to get it done cheaply, efficiently and well in advance of the contract date. The lawyer (also SS) was then ready and it settled within 43 days. No hickups. Not bad for a SMSF formation and loan from scratch.

Agree on the conflict of interest issue. It can be a serious problem in property. You want to avoid a one stop shop in some instances. In SMSFs there are many who worry me. They facilitate the loan, the property, the setup and the advice and the audit and the loan etc...Its hardly independent. The lines between them and other providers is blurred. No prudential protection either. One of the reasons why I refuse to assist with sale of any property despite the revenue that could be earned even if I disclosed it.
Click to expand...


Thanks for the thorough explanation Paul. We might start with a broker and see an accountant/lawyer when we are ready. Looking at a 6 months time frame.

The current accounting firm seems to have a very high fee(approximately 8% increase each year) although it might be the complexity of the occupation. Never done a comparison so don't really know. Met him once and the rest of the correspondence through email for the last 10 years or so.
Might need to source for alternative soon......
 
Rolf Latham said:
On the assumption that one would do the loan application and settlement with the same broker then thats a part reasonable expectation.............

ta

rolf
Click to expand...

Thanks Rolf. Met a broker once and he was only interested in pushing certain lenders claiming they have the best rates. No structure or plans were mentioned during the meeting. Doesn't seem fair to charge given the poor advice.
 
megamort said:
Thanks Rolf. Met a broker once and he was only interested in pushing certain lenders claiming they have the best rates. No structure or plans were mentioned during the meeting. Doesn't seem fair to charge given the poor advice.
Click to expand...

Sure, I can see in that instance why youd not want to pay for a service not provided, however the expectation with someone like Terry is that youd get the right advice.

ta
rolf
 
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