These are my thoughts on all things finance, a finance professional’s candid view so to speak…
When considering advice of any kind, it’s always wise to consider the agenda and possible biases of the person or organisation providing it. It’s only fair then that I should share mine.
So why should you care what I think?
I’m a Chartered Accountant with 20 years’ experience (I’ll let you know I struggle typing that, I don’t feel old enough for that to be true). I have worked with multinational corporations, high net worth families, mums and dads, and everything in between and learned a lot from all of them. I have 10 years hands on experience in finance and mortgage broking, including the turbulent years of the GFC, mining booms, the end of mining booms, property booms and the end of property booms…
Qualifications, background and my experience in personal and business finance over the years are only part of the story.
I have an inherent dislike of red tape and detailed paperwork, and here I am gathering copious amounts of information from clients to shepherd it through the complex, sometimes picky, often bureaucratic bank application process.
And yet, I love what I do. It provides me with the opportunity to be an advocate for my clients, to strategise the best outcomes for them and to guide them through the process, protecting them from both unintentional errors that can cause major headaches and from loan structures that are more beneficial to the bank than to my clients which is often what they’ll end up with if they go direct.
Raising the initial loan is just the beginning.
They say that they best laid battle plan never survives first contact with the enemy. The same goes for our financial plans. Life happens, our circumstances change, lenders change offerings, lending rules and rates, governments and regulators make changes. These are necessary in some cases, but can be fraught with unintended consequences for borrowers not necessarily part of the problems the regulators were seeking to avoid. We are in a time of an unprecedented rate of change in the lending space in Australia, so now more than ever, strategies cannot be static.
I believe that debt needs to be taken on strategically and with due care not to become over-committed. When used wisely, it is a powerful tool to build wealth. That said, there are many pitfalls along the way to be avoided, including the risk of doing nothing.
The more you know about the process and the risks, the safer your path through and around them can be.
While I earn my living helping clients raise finance, I love to see them pay off their home loans, build equity and establish themselves financially. This may be through further investing in property, but it may equally be just building equity in their homes as they pay their loans off.
My first few posts are focused on some of the more common areas of risk that I regularly see clients exposed to – for example, buying property off plan or at auction where there is more risk to be managed ( or in some cases just avoided altogether!)
Other areas that are worth spending a few minutes to read up on are where recent changes potentially impact on strategies you may already have in place, like interest only repayments on loans.
I see my role here as being here to educate and advocate. This blog is intended to be a platform to share my thoughts and to create a platform for comment and conversation.
You’ll always know what I think…