Whether you are looking to buy domestic property, office buildings or retail premises on the high street, you need to choose your advisers carefully. We all have our tried and trusted advisers, often people we have used for many years and they know our financial situations inside out. However, depending upon the depth of knowledge available at the companies you hire you may need to look around for specialist advice for specialist transactions.
Changing regulatory structure
Even the quickest of glimpses at the worldwide press will show you an array of regulatory changes around the worldwide real estate sector. This will incorporate anything from increased taxes to mortgage restrictions, green issues to restrictive planning permission and everything else in between. While very often advisers and investors are “one step ahead” of the authorities the constant edition of new layers of regulation and taxes can make what have in the past been simple situations very complicated.
It is advisable for you to do your own research regarding regulations but when push comes to shove there are numerous occasions when you will need either broad advice or detailed advice from experienced parties.
Is detailed advice really worth the money?
There are numerous areas of the investment market that attract significant fees for advisers which many people may think are expensive. It will very much depend upon the size of your operation, the type of investments and indeed your own experience but history shows us that you get what you pay for. If you are looking for cheap advice then this may not be the most advantageous for your situation as very often detailed, and sometimes expensive, advice can more than pay for itself in the longer term.
Is also worth noting that the building of long-term relationships with individual specialist advisers creates a team of parties you can go to at the drop of a hat. As your relationship blossoms this may open up different opportunities in the investment market to the benefit of all involved.
There is nothing wrong with being loyal to your advisers of years gone by but if they are unable to keep pace with regulatory changes, new taxes and specific situations which may impact your investment returns, you may need to think again. The investment market, and especially the real estate sector, is a cauldron of competition, cutthroat ambition and ultimately it boils down to the survival of the fittest.
When you take a step back and look at the situation from a distance, it is easy to allocate certain areas of your investment life to specialist advisers. It may be possible to have one broad “umbrella” adviser overlooking all of your investments who is fully aware of your tax status and financial situation. This means that nothing is missed, all of the I’s are dotted and the T’s are crossed ensuring that you get the best advice and the best value for money.
The regulatory and tax environment surrounding the real estate market has changed dramatically over the last decade. It is therefore imperative that you retain advisers who offer specialist advice which can very often pay for itself in terms of savings for you. A loyalty to advisers you have used for many years is very gallant but at the end of the day you need to squeeze the greatest return from your investments as possible.
Whether this means spending more on advice to crystallise long-term benefits is a situation more and more investors will face in the years ahead.