Paul Glossop: Good day and welcome again guys to Pure Property Investment one on one. Today we’re joined by Andrew Foo. Andrew is the principle of Apexx Wealth. He’s also a financial planner. And one of the things we speak about quite regularly with clients is the need to have a team. And not just a team for team sake and just having people in your corner like a bit of a hype man goes out to a boxing ring. It’s probably more so to make sure those people fit a specific reason as far as why you’ve engaged them and what they are going to bring to the table when you are engaging their profession. From a financial planning perspective, I think sometimes people do miss out on where the probably the heightened ability of a good financial planner and a property focused financial planner and what they bring to the table when you trying to plan your objectives and also achieve those objectives and probably set some defence and some protection in place along the way.

So, if you don’t mind Andrew, it would be great to probably hear your insights as far as how a financial planner works with a property investor and how they can bring to the table.

Andrew Foo: Now, obviously as a financial planner, you see the client’s entire situation. You know property forms a big part of you know every day Australians portfolio. I mean we have the dream to own property and multiple properties. As a financial advisor, we can’t direct clients to invest directly with property but we can work around that strategy with their buyer’s agent or if there’s a savvy real estate investor. We work around “Okay, this is your position you know this is what you want to achieve or this is what you want to purchase, does it make sense? You know do you have the right you know diversification as well?” You don’t want to just have everything in property only. We need to spread out that risk a bit and then look at protection.

 I mean when you take out you know mortgages and what not for property investment, you need some sort of protection especially if you have dependents, if you a sole income earner you know what happens in that respect. And a big emphasis we place is on cash flow. We look at the clients’ cash flow, see that they’re able to afford it in the event of a worst-case scenario where rates go up a X amount percent or you know for some reason tenants have been bad you’ve got to pay for additional fixtures and things like that or you know period of no tenancy.

Paul Glossop: A lot of things there that I think you probably outlined. As property investors in general, where you speak and work with property investors every day. And I think a lot of the time property investors in general are guilty of probably thinking about best case scenario rather than planning for worse case and hoping for best case.

And I think no property investor is truly a probably a professional or well-seasoned business focus property investor without the right understanding of risk mitigation, the right understanding of how that fits into their long-term objectives. And I think a financial planner for a lot of those reasons is the right person as opposed to themselves or potentially a mortgage broker or accountant or even a buyer’s agent. It’s really comes down to every single one of those profession should be filling a void that you have within your space. And there is nothing stopping you from doing it yourself but obviously you well equipped as an expert in that space to be able to lend advice and also give people the tools to understand cash flow, understand risk mitigation, understand how that property potentially will fit into the right property in their portfolio to achieve those long-term goals.

So again, guys from a financial planning perspective I think it’s very important that you do engage a professional and you work with someone who is going to be property focussed and that’s something that they need to have an understanding of as well as the diversification piece. So, if you do want to get in touch with Andrew or anyone from his team, feel free to give him a call on the contact details at the bottom of your screen. From our side of things we always happy to have a chat and sit down if there is anything you want to discuss. You can contact us as per the details below as well. And we’ll catch up with you soon. Cheers!