Property Financial Plans

[Terry_w]

HI there.

I am interested in provide property related financial plans to clients. Something along the lines of working out how many properties you would need to own to give you $X in income per week.

This may involve buying several more properties than you need and then selling down a few to pay off loans.

Would like to ask for feeback, on if anyone has found a 'planner' that they had used for this (do they exist?) and how much would you expect to pay for such a plan?

 

[Rolf Latham]

Many 2 tier marketing companies do it

"for free"

ta
rolf

 

[alexlee]

What value would this sort of plan add compared to a simple excel spreadsheet projection?

It's not difficult to calculate 'I want $50k income, assuming 3.5% net yield, I would need 1.4m property.'

The same logic applies to retirement plans in general. There's little value in a plan that just tells me how much I need to retire, or save $x a week and you'll have $y in 30 years. The value is in teaching me the specific steps to get there. If I know the steps myself, I might need advice on specific things, but I don't need a planner.

 

[Rixter]

Terry, I think you are going to get a lot of "I wont pay a cent" asking people here on Somersoft. Most here have the brains to work it out themselves.

I think you are catering to the masses who dont have a clue on where to start themselves. The ones who need their hand held.

 

[Singo]

Agree with Rixter. People who found the way to this forum won't pay for "how many properties" sort of advice. But will pay for trust structures etc.

 

[Terry_w]

Yes Rixter, I think you are correct!

 

[Terry_w]

What value would this sort of plan add compared to a simple excel spreadsheet projection?

It's not difficult to calculate 'I want $50k income, assuming 3.5% net yield, I would need 1.4m property.'

The same logic applies to retirement plans in general. There's little value in a plan that just tells me how much I need to retire, or save $x a week and you'll have $y in 30 years. The value is in teaching me the specific steps to get there. If I know the steps myself, I might need advice on specific things, but I don't need a planner.

Yes, it was more along the lines of the steps to get there and the checks along the way to push and motivate.

 

[Rolf Latham]

Yes, it was more along the lines of the steps to get there and the checks along the way to push and motivate.

Pull works much better than push I have found

ta
rolf

 

[nhg]

I wouldn't pay a cent.

HOWEVER, from talking to a few people before I found my way to the forums, $300-500 was fairly acceptable for a 1 hour one-on-one chat with a professional to help them 'plan' their strategy.

That's what the likes of a few of the 'big names' charge.

There is then a fee to have a more thorough plan drawn up. Maybe show a few graphs, give them a booklet, and a water bottle in the colour of their choice.

 

[Peter_Tersteeg]

I've seen very few property plans that I'd judge being worthy of payment. Those I've seen tend to be consistently a single strategy which then feeds into an additional service such as property sourcing; the results of which rarely match the plan anyway.

 

[redwing]

I liked the term Financial Strategist (used by ZHENG I think). Buying one IP is easy, however you need a Financial Strategy/Strategist as you progress and approach the banks cap in hand

 

[Angel]

Hi Terry.
We want to get blood line wills and work out about purchasing in trusts. How complicated is that service?

 

[willair]

HI there.

I am interested in provide property related financial plans to clients. Something along the lines of working out how many properties you would need to own to give you $X in income per week.

This may involve buying several more properties than you need and then selling down a few to pay off loans.

Would like to ask for feeback, on if anyone has found a 'planner' that they had used for this (do they exist?) and how much would you expect to pay for such a plan?

When I started in the early 80's there was no such thing,but I attended several conferences that the Accountant we used back then would give away free tickets too every year,that helped,but I have a few mates tradespeople that starting using planners in the mid 1990's the ones that are still alive I think only one has done very very well,bought several on hastings street in Noosa otp in the late 1996,all that advice came from a "FP" a very street smart lady who back then was charging about 3k per year and that was in the 1996,she is dead now,my mate lives in Noosa and drinks coffee on the beach each morning watching life pass by without a worry in the world..

BTW,Terry I voted "I wouldn't pay a cent "but that's just me I started picking up coke bottles off the street and making 5 cents per bottle..

 

[Ed Barton]

HI there.

I am interested in provide property related financial plans to clients. Something along the lines of working out how many properties you would need to own to give you $X in income per week.

This may involve buying several more properties than you need and then selling down a few to pay off loans.

Would like to ask for feeback, on if anyone has found a 'planner' that they had used for this (do they exist?) and how much would you expect to pay for such a plan?

$99.00 - http://www.microsoftstore.com/store...ntent=pei9Tbpj&WT.source=google&WT.medium=cpc

 

[Vixs]

Terry as a financial adviser this is the sort of thing that more should be incorporating into their planning.

People here may not realise just how financially uncertain a lot of advice clients are, and cannot put themselves in the position where they didn't have the knowledge they've gathered to date.

I'm not sure how the rest of your services are priced, but I would charge what you deserve and if people want to balk at a few thousand dollars for guiding their hand towards a few million I wouldn't even want them as clients, and I'd be surprised if you, as a clearly well educated and useful professional, would want them either.

How many clients do you really have time to provide that level of service to on an ongoing basis?

 

[alexlee]

For general plans, the clients who need it won't be willing to pay for it.

The clients who see the value, and would be willing to pay for it, won't need it.

Isn't that why it's so hard to charge for these plans? Usually the plan is for free and planners, brokers, etc have to make their money from when the client actually does something.

 

[Terry_w]

Hi Terry.
We want to get blood line wills and work out about purchasing in trusts. How complicated is that service?

Hi Angel

This is legal advice and can be as complicated or as simple as you want. You just tell me what you want in broad terms and I can work out how to structure it - e.g. on death all assets to a testamentary discretionary trust to protect from future spouses. I will ask you a few 'what ifs' do a draft deed and then amend where necessary after discussing.

 

[Terry_w]

For general plans, the clients who need it won't be willing to pay for it.

The clients who see the value, and would be willing to pay for it, won't need it.

haha - that is probably the case. But I see a big demand for property plans. Anyone can do some projections on excel, but I am thinking something more detailed incorporating land tax, structuring, taxation and borrowing strategies etc. It is just going to be difficult to incorporate everything without spending hours on it.

 

[alexlee]

haha - that is probably the case. But I see a big demand for property plans. Anyone can do some projections on excel, but I am thinking something more detailed incorporating land tax, structuring, taxation and borrowing strategies etc. It is just going to be difficult to incorporate everything without spending hours on it.

Thing is, that sort of detail would be of perceived value only to those who already have property, and are actually going to buy more. The fees are not for the PLANS around land tax, structuring, tax and borrowing strategies, but in the fees for actually setting up the structures and getting the loan.

When I go to buy a TV, I want free advice on what TV to get: I expect the salesperson to be making the money when I actually buy the TV.

 

[dex]

Alex makes a good point. Perhaps you could do the plan for free and then flog them some trusts, brokerage fees and legal advice.