As your property portfolio expands you’ll have more assets on your hand, meaning your life will likely become much more complicated financially. That’s where a financial adviser could be worth their weight in gold.
Not only can he or she advise on the best investment products out there for profits acquired from properties, but he or she could also advise on whether to use equity to invest in other properties or to sit tight. That means being able to point to when the best time could be to re-mortgage particular properties – and where to do that for the best finance deals at any given time.
A financial adviser can also help you restructure your property portfolio if you fancy taking a look at another strategy e.g. switching from commercial to residential investment or opting for serviced apartments rather than a handful of buy to let investments.
Then, there is the tax element. Many advisers will have a good grasp of tax implications – something that is particularly relevant in property investing, especially after the ongoing mortgage interest rate changes for buy to let landlords.
A good financial adviser will keep you accountable
A great reason to have a financial adviser on board – especially if you work independently – is to have someone there to make sure you are accountable and that you’re on track to reach the financial goals you’ve already discussed with them.
He or she will also make sure you invest your money rather than splurge at your first big profit boost. And, of course, you’ll want to keep your books in good order since they’ll want a look at them to keep up-to-date with your current investments.
How to find a financial adviser
Ask any property investment friends if they can recommend a financial adviser who specialises in property matters. Otherwise, contact some of the landlord bodies to see if they can recommend anyone. It’s always handy to have your adviser living locally so that it’s easy to have a face-to-face meeting when the need arises, or even just to keep you updated with any changes.
All financial advisers should be registered on the Financial Services Register, run by the Financial Conduct Authority.
You can always check a financial adviser’s credentials online. The Chartered Insurance Institute (CII) awards include a Certificate in Financial Planning (CertPFS), Advanced Diploma in Financial Planning (APFS) and Fellowship (FPFS). A financial adviser who is chartered must have at least five years of experience behind them. Just type your potential financial adviser into the CII’s search tool.
The London Institute of Banking & Finance also offers qualifications such as a level six Diploma in Financial Advice (Adv DipFA), as well as a Certificate in Financial Administration & Planning (CeFAP).
And finally, advisers who are qualified via the Chartered Institute for Securities and Investment (CISI) could have a level 6 Diploma in Financial Planning or level 7 Diploma in Wealth Management.
A financial adviser’s services don’t come free – but the initial cash outlay could potentially save you a fortune in future.
FT’s top 5 financial advice firms for 2018
The top UK financial advice firms last year according to the Financial Times newspaper were Tenet, JLT Group, Mazars Financial Planning Ltd, Kerr Henderson Group and Wilfred T Fry (Personal Fin Plan).
The results were based on the number of assets under management, how many highly qualified individuals worked there and the company’s net retail fund sales.