3 people to talk to before investing

History shows that property is one of the safest investments you can make, but there are still risks involved. First-time investors are most at risk because they don’t know the market and often have to stretch their finances to purchase their first investment property. A number of excellent investment tools are available to help you, but the personalised services of investment professionals will minimise your risk and help maximise your rewards. Your investment in these three services can be the difference between a risky and a sound investment.

Financial adviser

You’ve saved your deposit money, looked into the prices of real estate and used finance calculators to help you figure out your long-term financial commitments. You’ve factored insurance and other one-off and annual expenses into the equation, too, so why talk to a financial adviser?

Investing in property should be a business decision, but when your future is at stake, it will also be an emotional decision. An independent financial adviser or planner will look at your current financial situation and long-term prospects and give you an objective plan of action. They can also help you through the mortgage-brokering process when you decide to make your investment. The cost of a financial adviser will depend on their level of service, so you can start with basic advice and ask for more help when you need it.

Real estate professionals

Your financial adviser has helped you get a clear picture of what you can afford to buy and you’re ready to start looking at properties. As a first-time investor, you are exploring uncharted waters. Before you go it alone, meet with local real estate agents and look into the benefits of using a buyer agent. A buyer agent is a professional who knows the market and can help you through the whole buying process, from bidding on properties to final settlement. While your judgement may be clouded by emotions, the buyer agent will take an objective look at property. They can also help you find those hidden gems where you may not have already looked.

Solicitor or conveyancer

You’ve found the perfect property, negotiated a great price and paid your deposit. Now all you have to do is go through the title transference process and take possession of your first property investment. Surely you can handle that alone. Or can you?

Transferring title (conveyancing) is more than just signing on the dotted line. It involves research to ensure total transparency on the part of both the buyer and seller. You are not required by law to use a solicitor or licensed conveyancer, but if you take the DIY approach, you take a significant risk. If anything goes wrong, you could face a hefty fine or even forfeit your deposit. Licensed conveyancers and solicitors who specialise in conveyancing remove the risk from the equation. They are required by law to hold professional indemnity insurance so if anything goes wrong you won’t be in hot water.

Depending on your circumstances, you may need the services of other professionals as well. For example, a quantity surveyor can help you if you are claiming depreciation deductions on your taxes. In the meantime, a financial adviser, buyer agent and solicitor or conveyancer will help get your first property investment on firm ground and give you the confidence to make further wise investment decisions in the future.