Choosing a property investment adviser
When planning your property investment journey, whether you are still on the hunt for your first house, or deciding how to structure your property portfolio of 10+ properties, it is important to work with an adviser that meets these criteria:
- Finance and serviceability calculators at ALL lenders and access to funding options.
- Understands property investment and the difference between the variables of the what, where, when, why and how of buying and selling based on experience.
- Someone who will not just take orders but will challenge your assumptions and point out ideas you may have missed.
Let me expand on these points.
Many brokers only work with a few banks and lenders even though they say they offer options from everyone. It’s not for us to criticize other brokers but many do not have access to Kiwibank who only work with a few brokers. Many of the brokers with Kiwibank access do not work with other banks. So you will want a mortgage adviser with access to all big 5 banks, all NZ banks, and mainstream non-bank lenders to make sure your options for rates, cashback, and funding limits are properly calculated across the entire market offering rather than just a few banks.
When choosing an adviser, make sure you are at least aware of how they are paid. If commissions are in play, that is fine, but do not get caught out being pushed into a property investment or a bank product that pays the adviser more. Some advisers ‘clip the ticket’ when a property is bought or sold and often brokers prefer banks that pay higher commissions rather than options that pay less but might actually be better for you.
Your adviser should have an opinion on your property investment decisions. You should be leaning on them for advice and connections to people that will help you. But, because the bank will pay the broker a commission at the end, you should not have to pay them for advice. The brilliant thing about mortgage brokers’ services is the value needs to be complete and upfront for you and the broker is paid after settlement or completion which means their service needs to be super the whole way through. It is free for you, and they help you with advice and should save you a lot of time.
Now the biggest benefit of a good mortgage adviser is they will point you in the right direction, by helping you avoid landmines and costly mistakes like selling from bank pressure but when you do not need to, or buying a lemon.
Pick an adviser with more options, that is free, will help you avoid mistakes, and is experienced… do not pick your cousin because the risks are too great. All iRefi Mortgage Advisers are supported by senior advisers who have helped 1000s of property investor clients.