Graham Goodisson

Are you a Landlord or an Investor?

Property investment. It can start as passive income—your money working for you—then suddenly become weekends spent painting, unblocking drains and chasing unpaid rent. Graham shares his tips on balancing the roles of property investor and landlord.

 

Many people are excited at the prospect of being a property investor and not so much at the prospect of also being a landlord. You’d expect this to be the case, but I think over time more and more investors will become even less enthusiastic about the landlord experience. Here’s why …

 

Like most industries, there are an increasing number of standards and regulations that landlords must comply with. The expectation is that landlords will supply habitable properties for tenants (who would have thought!). These properties need to be insulated, up to a certain standard, be safe and, soon, will need a warrant of fitness. The latter is not yet law but it seems that in time it will be (I think it is a good idea). 

 

There is also an increasing obligation on landlords to supply heating (again a good idea) and also proof that the house is ‘meth free’.

 

The change in health and safety laws also means that the directors of companies have an obligation for the safety of those in and around their company. If you own rental property in a company then you fall under this obligation. Again, the intent of this law is good, if not the bureaucracy attached to it.

 

What’s the key take-home from this? Well, if you’d prefer to focus on the investing, not so much the landlording, a good property manager could save a lot of stress.

 

It may be time for the professionals to do what they are good at!

 

Graham Goodisson is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.

 

 

Regulatory Changes Are Coming: Means Business As Usual For Us

There is a change in how financial advisers (Velocity included) are about to be regulated. Graham explains why this is a great thing.

 

One of the key issues in the world of financial advising is, and has always been, the lack of complete disclosure around how much people get paid and by whom. There has been plenty of talk around this.

 

Velocity decided from day one that we would always be utterly transparent around commission payments because we think that’s how business should be done. No one likes surprises, unless it’s your birthday and, even then, not always.

 

We include these commission figures in our initial discussions with all clients.

I’m quietly hoping that banks will soon have to disclose sales targets and incentives for staff … but … I doubt it.

 

The good news is that with the upcoming regulation changes in our industry there is a continual emphasis on good disclosure, good training, and, ultimately, an attempt to make things clearer and simpler for you, the consumer.

 

What it means for Velocity? Just more of the same!

 

Graham Goodisson is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.