It is no secret that doctors and dentists have a love affair with property.
However, all too often property investment and negative gearing is seen as the holy grail of wealth creation, and aggressively promoted by various medical accounting and financial planning groups.
My belief is that there is a tremendous amount of risk involved with pursuing this single strategy.
Whenever there is a property bull market, like we saw in Sydney recently, everyone seems to think it is different, and the bubble wont burst this time…but it always does.
The signs are already there, as per the reports in the press (AFR of 4-5th August):
– more than half of Millennial property investors are stressed by their finances;
– property prices are falling and vacancies are increasing, rents dropping;
– over the next 5 years, $480 billion or 1/3rd of all home loans will be rolled over or converted to principal and interest.
Am I saying property investment is bad? Not at all, but it needs to be part of a well-diversified wealth creation plan.
If your adviser or accountant is advising you to keep purchasing property and take on more debt, beware.
More often than not they will be taking commissions/referral fees on the property sale and associated loan, as well as any increased personal insurances you may require.
Don’t be afraid to seek a second opinion. I would be happy to offer this to you free of charge.
Email me at Yves@affluenceprivate.com.au
As I understand your time is extremely valuable and scarce, I am able to offer flexible meetings times, including outside business hours and during the weekend. I can even come and meet you somewhere convenient, or talk via videoconference on Skype.
My first consultation is free. I allocate up to 90 minutes to discuss your personal circumstances and to establish how I may best assist you. Where you already have an existing adviser, I would be happy to offer a second opinion. I always quote a fixed dollar fee before we start working together.
Please contact me on email@example.com or call me direct on 0432 885 295. You can follow me on Twitter @YvesSchoof or connect with me on LinkedIn to receive new articles.
Yves Schoof and Affluence Private Wealth are Authorised Representatives of Synchron, AFS Licence No. 243313.
The information posted is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs.
Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making a decision.
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