All landlords require financial advice from time to time, I’ve listed some of the many reasons below. My question to readers of Property118 is how do you select an adviser? Do you want to be able to meet them or do your prefer to communicate by phone or internet? Do you prefer to work with people who are landlords themselves? Is age, sex, cultural background a deciding factor?
These are the some of the areas I’ve sought financial advice in the past:-
- Mortgage advice
- Estate planning and IHT
- Capital Gain Tax
- Income tax
- Other tax planning and deferral/avoidance schemes
- Life Insurance
- Landlords building and contents
My little black book contains hundreds of names of different professionals and contractors but in this article I’m focussing only on financial advice.
I’m not at all bothered about meeting the person who arranges my landlords insurance or my mortgages but I do want advice from a real person. Yes I could just rely on price comparison sites but I’ve learned that price isn’t everything and I’d rather pay a bit more for somebody else to read all the terms and conditions and to help me pick the right provider and product for my needs.When it comes to advice of tax issues, particularly income tax, IHT, capital gains etc. I think it’s very important to have a close relationship. Can that be done without face to face? I’m not sure – I still prefer to see my advisors and chat things through properly to make sure we’ve thought through everything before decisions have been made.
I’ve always tried to make sure anybody I take financial advice from has at least one thing in common – they must have a property portfolio of their own.My view is that a person without a property portfolio simply can’t have the same mindset as me. Their advice might well be spot on but I feel I could never trust it completely unless they thought about property in the same way as I do.
I created a quirky little calculator to work out how much life insurance landlords would need to buy in order to enable their loved ones to refinance at 60% LTV after paying costs of repaying existing mortgages and fees to set up a new one. Life insurance can be expensive so I wanted to work out the minimum I should buy. This is not a replacement for financial advice but do feel free to give my calculator a whirl.
So, back to my question, how you you decide who to work with when you want financial advice?
This article was first published on 7th July 2012 and has been re-published on 8th October 2013.