IFAs and Buy to Let

JosephM_2

Hi,

I am new here, my first post.

I am considering buying an off plan apartment in Sheffield which will go on the market at full completion value in Sept 2017. I could then arrange a buy to let mortgage paying off the interest from rental income. I am aware of some of the dangers of buying off plan, and I am also nervous about the prospects of a crash in the housing market in the near future. What bothers me is that you cannot seem to get independent financial advice on this kind of investment. Most advisors want to sit down with you, do a complete financial health check, recommend products and establish a long term business relationship. I am happy to make the final decision for myself but it would be nice to gain some insight from the professionals. Am I asking too much here? Any comments or thoughts very welcome. Thanks.

booksurr

there is a big difference between an IFA being able to "advise" you on the differences between clearly defined financial products which may (or may not) have a performance track record compared to them "discussing" what is a pure business gamble based on the very precise circumstances of the type of property you have, the local rental market and how god like your tenant vetting is

why are you surprised therefore that, even for a fixed fee, no one operates in such an advice market because of the dangers of "mis-selling" if/when you come back and say it all went wrong and its not my fault guv, it was your rotten advice

AdrianC

An IFA is not some kind of philanthropist who wants to help you, so that he can feel good about his day. He needs to EARN MONEY. He has two ways of doing that - he can either take commission off the products he sells you, or he can charge you an hourly rate.

Have you spoken to one on that basis?

Even then, he has to work within industry guidelines, and can only advise on FCA-regulated investments. There are FCA-regulated property investment products, but a To Let board outside 43 Acacia Avenue isn't one of them.

marksoton

JosephM wrote: »

Hi,

I am new here, my first post.

I am considering buying an off plan apartment in Sheffield which will go on the market at full completion value in Sept 2017. I could then arrange a buy to let mortgage paying off the interest from rental income. I am aware of some of the dangers of buying off plan, and I am also nervous about the prospects of a crash in the housing market in the near future. What bothers me is that you cannot seem to get independent financial advice on this kind of investment. Most advisors want to sit down with you, do a complete financial health check, recommend products and establish a long term business relationship. I am happy to make the final decision for myself but it would be nice to gain some insight from the professionals. Am I asking too much here? Any comments or thoughts very welcome. Thanks.

You're an absolute joke as an investor. Christ knows what you'd be like as an LL.

JosephM_2

Actually I'm not doing bad investment wise. Last weekend on moneybox a woman revealed she had lost money investing in some trees in a far away country. The first question Paul Lewis asked was "Did you speak to a financial advisor first? It would appear therefore that some provision should be possible for the kind of investment I am speaking of.

Of course I understand that financial advisors need to make money, and I am not suggesting I would hold them to account over their advice either. A balanced opinion (for a fee) is all I was looking for.

JosephM_2

I will not be investing in Southampton FC, that much is certain.

Caz3121

JosephM wrote: »

I could then arrange a buy to let mortgage

do you already own a property (mortgaged or outright)? if not you may struggle getting a mortgage as a BTL as your only property..you will also need a larger minimum deposit than a residential mortgage

marksoton

JosephM wrote: »

I will not be investing in Southampton FC, that much is certain.

Given your comments above the good people of Southampton salute that decision :money:

Freecall

AdrianC wrote: »

He has two ways of doing that - he can either take commission off the products he sells you, or he can charge you an hourly rate.

Interested to know how he gets commission from selling investment products?

kingstreet

Freecall wrote: »

Interested to know how he gets commission from selling investment products?

Perhaps he was talking about fees on investment advice and commission from selling protection products...?

kingstreet

JosephM wrote: »

Actually I'm not doing bad investment wise. Last weekend on moneybox a woman revealed she had lost money investing in some trees in a far away country. The first question Paul Lewis asked was "Did you speak to a financial advisor first? It would appear therefore that some provision should be possible for the kind of investment I am speaking of.

A UK-regulated IFA would tell you investing in non-regulated investments outside the UK would mean no consumer protection and no redress if everything goes down the drain.

They would do nothing more than explain the risks to you, IME.

Hopefully Mr Lewis was asking the person concerned if she obtained specialist advice in the country/medium in which she intended to invest, rather than general financial advice.