HNW Planning financial advisers may provide Strategic Property Advice. Some financial advisers with higher levels of training are able to provide Specific Property Advice.
Strategic Advice might include:
- Sector allocation / risk management analysis / investment strategy advice
- Understanding negative/neutral/positive gearing
- Understanding the changing real value of money and debt over time
- Providing generic cash flows for a typical “generic” investment property purchase or consequence of a sale
- Insurance needs that may alter along with debt commitments
- Alternative asset and strategy options
- ‘What if’ scenarios of changing interest rates and/or rents
- Strategies to pay back debt
- Differing management preferences of personal as opposed to investment debt
- Tax efficiency of debt and investment structures
- Things to watch out for in making a purchase, contracting management, or making a sale or purchase.
- How Much Is Enough-style analysis in figuring savings requirements to meet shortfalls, and
- Timing of and the use of superannuation in one way or other for any of the above (including setting up a SMSF).
- Other items such as:
- Who can and can’t occupy the investment,
- The need for ‘arm’s length’ leasing arrangements,
- Stamp duty issues,
- ATO guidance regarding restrictions on asset improvement, and
- Issues in and around pension strategies.
- Complications or considerations for estate planning,
- Whether an SMSF might be used and associated costs, suitability, risks and controls; and
- Unwinding / exit strategies
Specific Advice might include:
- Cash flows, costs, suitability of a particular identified property.
- How a particular property’s characteristics might align or conflict with other financial planning requirements and priorities.
- Identifying a particular property for investment.
- A strategy for first home buyers.
- A strategy for the property of an aged person now (or likely to be) domiciled in high care.