When buying an investment property, who do I need on my team?

Before you go and spend hundreds of thousands of dollars on an investment property, you need to ensure you have the right team around you to navigate the complex process of buying property and help you make informed decisions.

Accountant

An accountant can help you understand the tax implications of owning an investment property, including deductions, depreciation, and capital gains. A good accountant will give you advice on what ownership structure to buy your property in, what tax deductions you can claim. Look for an accountant that is a property investment specialist and has experience with property investing. Speak to your accountant before making any property investment decisions.

Mortgage broker

A mortgage broker is a licensed professional who can help you find and apply for the best financing options for your investment property from various lenders. They will find the best loan terms and rates based on your financial situation and needs and guide you through the loan application process.

Buyers Agent

A Buyer's Agent is a licensed real estate professional who acts on behalf of a buyer to find the right property, in the right location, at the right price. Using a Buyer's Agent is a smart decision when buying investment property. Just like a real estate agent who represents the seller, a Buyer's Agent represents the best interests of the buyer to get the best deal for their client.

The right Buyer's Agent will save you thousands of $, buying under market value properties, negotiating on purchase price, they will know to negotiate on issues that arise from pre-purchase inspections, they will know the right questions to ask to help avoid costly mistakes. They will identify potential issues and help navigate any issues to protect your interests. They will reduce the time and stress involved when buying a property and help to make a more informed investment decision and give you a competitive edge in the market.

Real Estate Agent

A real estate agent is a licensed professional who represents sellers in real estate transactions. They typically earn a commission based on the sale price of a property and have a legal responsibility to act in the best interests of the seller. A good agent is knowledgeable about the local real estate area and they will also have access to off-market properties that are not advertised. It is always good to build strong relationships with real estate agents, as they have an important role in buying and selling property.

Conveyancer or solicitor

A conveyancer is a legal professional who specialises in the transfer of property ownership from one person or entity to another. They will review all your legal documents when purchasing or selling a property. Before you sign the contract, have a conveyancer review the contract for you and they will assist with any clauses and special conditions in the contract. A conveyancer will ensure you meet all your legal obligations. Carry out searches, prepare settlement documents, communicate with your broker or bank, handle the transfer of funds between the parties involved in the transaction, including the buyer, seller, and mortgage lender and ensure the property is legally transferred to your name.

Each state has a different process, so you need to ensure your conveyancer is licensed in the state you are buying in.

Building and Pest inspector

A building and pest inspector is a professional who is trained and qualified to identify and report on any structural or pest-related issues with a property. They are hired by buyers or property owners to inspect the property and provide a detailed report on any issues that may be present.

During a building inspection, the inspector will assess the condition of the property's structure, including the roof, walls, floors, and foundation. The inspector will also check for any signs of water damage, dampness, or other issues that may affect the property's integrity.

During a pest inspection, the inspector will look for any signs of pest activity, including termites, rodents, and other pests. They will check for any damage to the property caused by pests, and provide advice on how to prevent further infestations.

Once the inspection is complete, the inspector will provide a detailed report outlining any issues that were identified during the inspection. The buyer can use this report to negotiate repairs or to make informed decisions about the property.

Property Manager

Property managers are skilled and knowledgeable in managing investment properties. A property manager’s role is to advertise your property, review tenant applications, manage the rent and expenses, ensure the property is being properly maintained and manage the day-to-day issues. They keep up to date with changes to legislation, complete regular inspections, deal with issues, arrange quotes and repairs as required, assist with insurance and provide rental reviews and keep you informed.

If you're new to real estate investing or don't have experience or time to manage rental properties, a property manager can help you avoid costly mistakes and legal issues.

Quantity Surveyor

A quantity surveyor will assess the property and provide you with a tax depreciation schedule. A tax depreciation schedule is a detailed report that allows you to claim wear and tear of your investment property. This includes fixtures and fittings and the building structure also. This report will determine the depreciation for the life of the property and the depreciation that can be claimed each year and save you thousands of dollars.

Once you have purchased a property, speak to your accountant and a quantity surveyor to understand if there are any potential depreciation benefits available with your investment property.

In conclusion

Good advice is not free, but the benefits of saving yourself from costly mistakes in the future far outweigh the initial expense of having a strong team of professionals that can help you make informed decisions and avoid costly mistakes when buying an investment property. Investing in good advice now can lead to significant long-term financial savings.