Thanks for the info Jingo. I got a copy today and skipping through the pages. So far seems good. Will post about it later in another thread.
Property Financial Plans
- Thread starter Terry_w
- Start date
Thanks for the info Jingo. I got a copy today and skipping through the pages. So far seems good. Will post about it later in another thread.
At the beginning being a passive investor, the client that sold the properties did it for us for free.
After few years later went to an independent financial planner presented financial situation for first free consultation. Then I was told a fee of $8000.00. Luckily we realised we needed a structure plan instead which we could discuss with new changed accountant. Haven't looked back an saved ALL that money.
What I have experienced the higher the net wealth the more people wish to charge for all services...
For Estate planning I was quoted a sum and then when it was finalised I was charged 60% extra, how can you back out then.... Now I am hesitant to get it updated as I am wondering how much will the charge be now???
I suppose now I understand the above survey statistics....
Hi Terry
I have a very simple and short reply
For every $ you can "save" me...i will gladly pay you 10%...GLADLY
Thanks Virgo, but these plans are not about saving money but making it - saving money would still play a part, such as effecient tax structuring.
Thanks for the detailed reply Greg. this is a good approach.
Is this getting off the ground?
Cheers
Cheers
Thanks...PM sent
Hi Terry
i've got my hands up for this service/product.
please let us know when this will be available.
Still working it out. If existing clients then cheaper than non existing.. $1100 to $3300 ish - depending on a lot of things.
Does not seem unreasonable, particularly when put together by a solicitor & mortgage broker with a wealth of property experience
Hey Tez, keep us posted with your progress would be very interested and great initiative.
Cheers, Ivan
The area of property investing isn't a regulated profession. Its a hybrid of multiple services.
- REA
- Buyers Agents
- Property Devs
- Speculators, passive investors
- SMSF
- Lenders, Brokers etc
A one stop shop can be helpful but it can also mean the person is a master of none. Or has other motives !! (ie spruikers)
Financial Planners generally don't do property and many that do can be a concern if that's their income stream. Unfortunately Financial Planning has become a product flogging outcome from the insurance industry of old. Then it progressed to product floggers who sell investments that can be managed on wraps and platforms...Property doesn't fit. Imagine if a financial planner proposed fees of 1% of your property portfolio value. That's the problem...That how that industry often works.
I would argue there is a very good model for property financial planning to become a good service Terry. The non-financial planning planner !! Huge demand as there are a load of people who avoid super and are property people.
- Reliable modelling and ongoing review
- Finance / equity / offset and other support
- Buy / sell decisions
- New purchase decisions
- Incorporating other entities - SMSF / Trust / Business
- Estate Planning (the more wealth the more its needed)
- Pre retirement planning (To super or not to super ?)
The hard bit is treading that fine line between income streams and independence. Nothing wrong with helping with a purchase but obviously a fee helps pay the bills. A very high fee poses a concern too. Just don't want it to become a City Pacific style incentive that bypasses ethics etc. rebated back to an agreed annual fee perhaps ??
I find clients don't start with robust modelling..PIA by someone who knows it is great and can be basis of a sound plan. Also needs annual review.
One observation - I have never met two property investors with exact same ideas....
- REA
- Buyers Agents
- Property Devs
- Speculators, passive investors
- SMSF
- Lenders, Brokers etc
A one stop shop can be helpful but it can also mean the person is a master of none. Or has other motives !! (ie spruikers)
Financial Planners generally don't do property and many that do can be a concern if that's their income stream. Unfortunately Financial Planning has become a product flogging outcome from the insurance industry of old. Then it progressed to product floggers who sell investments that can be managed on wraps and platforms...Property doesn't fit. Imagine if a financial planner proposed fees of 1% of your property portfolio value. That's the problem...That how that industry often works.
I would argue there is a very good model for property financial planning to become a good service Terry. The non-financial planning planner !! Huge demand as there are a load of people who avoid super and are property people.
- Reliable modelling and ongoing review
- Finance / equity / offset and other support
- Buy / sell decisions
- New purchase decisions
- Incorporating other entities - SMSF / Trust / Business
- Estate Planning (the more wealth the more its needed)
- Pre retirement planning (To super or not to super ?)
The hard bit is treading that fine line between income streams and independence. Nothing wrong with helping with a purchase but obviously a fee helps pay the bills. A very high fee poses a concern too. Just don't want it to become a City Pacific style incentive that bypasses ethics etc. rebated back to an agreed annual fee perhaps ??
I find clients don't start with robust modelling..PIA by someone who knows it is great and can be basis of a sound plan. Also needs annual review.
One observation - I have never met two property investors with exact same ideas....
You're right, most don't. There are some that do and it works very well for them. I've worked with a few planners in the past who recommended direct investment property for their clients and it was an extremely popular service.
With traditional planning fee structure (percentage of FUM, now that commissions are not allowed - although I personally consider % of FUM to just be pseudo commissions anyway that chain the adviser to the mercy of the markets) direct property is extremely difficult to earn ongoing revenue from.
Advisers that use a flat fee pricing model (the only model that makes sense to me) have significantly more flexibility with regards to recommending property as a viable investment option for their client base. From what I'm seeing, this is still a small, but growing percentage of the adviser pool.
Hey Mr Fab,
In the SMSF sector, there are a heap of FP recommending property, particularly off the plan properties.
They are:
1. recommending the set up of an SMSF
2. recommending the purchase of property in an SMSF
They are advertising all over the airwaves and generally operating a 'one-stop shop' including accounting, property, mortgage, and property management.
As you know generally OTP comms vary from 4-8%, maybe the FP are issuing an SOA, however, the majority I have seen are not disclosing their commission earned. So, yes, FP are prevalent in SMSF and non-SMSF in my opinion, however, the quality of advice is generally poor (in my opinion), that is they are not stating in an SOA why the property is suitable for the individuals objectives/ goals and importantly not disclosing the commission earned which annoys me!
You will find most FP have their own AFSL, but if they are 'sponsored', there may be strict guidelines for property recommendations, a large AFSL sponsor will not allow recommendations on off the plan.....
Cheers, Ivan
Ahhhh, thanks? Not sure why you felt the need to tell me stuff I already know?
I wrote the Property Plan (from scratch). If it's a service you think you may be interested in, feel free to PM me and we can talk further.
I wrote the Property Plan (from scratch). If it's a service you think you may be interested in, feel free to PM me and we can talk further.
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I would pay up to $1,000 to get a broad plan in place based on current financial status and goals and then $1k-$2k to delve deeper into a few options that make the most sense based on the initial plan.
For this I would expect specific financial, tax and legal advice and I would also expect some commentary on the type of property that would best fit the plan. I would not expect specific property recommendations.
I would expect the advice given to be entirely separated from products, however I would tolerate the inclusion of optional third party services as long as any financial gain was disclosed (eg loans, insurance, legal documents, accounting/audit services)
I would also expect that for a monthly retainer the documentation could be adjusted and updated advice provided. My hope would be that I could ask "what if I...." and have the plan adjusted accordingly.
If this could be achieved it could help deal with the back and forth between lawyers and accountants that I have experienced. I think the fee I suggest and the retainer would be a bit of a no-brainer for a novice like myself.
Hope this helps Terry. Good luck with the product.
For this I would expect specific financial, tax and legal advice and I would also expect some commentary on the type of property that would best fit the plan. I would not expect specific property recommendations.
I would expect the advice given to be entirely separated from products, however I would tolerate the inclusion of optional third party services as long as any financial gain was disclosed (eg loans, insurance, legal documents, accounting/audit services)
I would also expect that for a monthly retainer the documentation could be adjusted and updated advice provided. My hope would be that I could ask "what if I...." and have the plan adjusted accordingly.
If this could be achieved it could help deal with the back and forth between lawyers and accountants that I have experienced. I think the fee I suggest and the retainer would be a bit of a no-brainer for a novice like myself.
Hope this helps Terry. Good luck with the product.
