In today’s post, we’re excited to share with you a collection of questions asked by our wonderful attendees during our recent GT Webinar’s Q&A session.

As a young person in a casual job with not a lot of money to spare, I’m wondering how you would propose to start building up credit scores and acquiring assets?
– Agnes

Here are some tips to consider as you start building your credit and working towards buying your first property. Firstly, in order to build up your credit report, you need to start by checking your credit score on a regular basis. If you notice your credit score going down, you can apply for a credit card with a minimum limit. Use it regularly for small purchases and make sure to pay off the balance in full before the due date. This shows you are responsible and helps build positive credit history.

One of the main reasons credit scores go down is poor account management. Set up direct debit for your regular payments to ensure they are taken care of automatically. Make sure to pay all your bills on time, as late or missed payments can have a negative impact on your credit score. Only apply for credit when necessary and avoid unnecessary applications, as each application generates a hard inquiry on your report.

As a young person working in a casual role focus on saving, as building up your savings balance is crucial for purchasing a property. Create a budget that allows you to save a portion of your income each month. Furthermore, cutting back on unnecessary expenses and prioritising long-term financial goals will help you build the necessary funds for a down payment. Sacrificing certain pleasures in the present, such as dining out less frequently or reducing entertainment expenses, can help you save more for your future goals. If you’re falling short on funds, reach out to family or friends who would be willing to provide financial assistance. Additionally, research government grants or programs that support first-time homebuyers to see if you qualify for any assistance.

Do you have recommendations for accountant?
– Florence

When looking for an accountant, it’s important to find someone who understands property investment and can assist you in building your business. Not all accountants specialise in property investment, so it’s crucial to find one who has experience and knowledge in this area. They should understand the specific tax implications, deductions, and strategies related to property investment. Also avoid tax-focused accountants. While minimising taxes is important, it shouldn’t be the sole focus of your accountant. A good accountant should help you understand the bigger financial picture and assist in optimising your overall financial goals, not just tax savings. Reach out to friends, colleagues, or other property investors to ask for recommendations. Look for accountants who have a track record of working with property investors and have positive reviews from their clients. But if you can’t find an accountant that ticks all the boxes, email me at graham@gtfinancialservices.com.au.

As an investor just starting out would you recommend I reach out to a financial planner now (before buying property) or after buying the first investment? I’m conscious a financial planner will charge a fee so I want to make sure I go with at least 1 property figure to work off rather than hypothetical figures.
– Richard

When it comes to engaging a financial planner as a new investor, it’s generally more beneficial to have 1-3 investment properties before seeking their services. Engaging a financial planner without having any assets or investments may limit the scope of their advice and the value they can provide. Before buying your first property and finding a financial planner, it’s beneficial to sit down with a financial strategist that specialises in property investment. They can provide guidance on property investment strategies, market analysis, and help you develop a roadmap for building your property portfolio.

I found the “seeking professional advice” part overwhelming. Do you have a recommended checklist when doing comparison?
– Ema

We understand that comparing financial professionals for your investment journey can be overwhelming. Firstly, determine your investment strategy. Before seeking a whole team of financial professionals, find an investment strategy you feel comfortable with. Having clarity on your strategy will help you find professionals who align with your goals. Also, find a financial strategist that specialises in property investment. They can help you develop a tailored strategy, provide market insights, and assist in identifying suitable investment opportunities.

Here’s a short checklist to get you started:

• Seek specialists in property investment
• Check qualifications and certifications
• Review their experience and track record
• Consider their approach and communication style
• Understand their fee structure
• Seek recommendations from investors, friends and family