Financial planning is really about… the home

The home is the most valuable asset most people own. Financial planning must be about the home.

Every client meeting should include a discussion about the home. How much did it cost? How much is it worth? Do you like living in it? Does it need repairs? Does it need renovation? How much will the renovation cost? Will the renovation increase value by more than the cost? Do you need to up-grade? Do you need to down-size? When will the kids leave home? What is the interest rate on the home loan? Should you speed payments up? Should you speed payments down?

The list of questions, comments and concerns is endless, and will be of great interest and relevance to your clients. Go there in your advice. It’s where your clients want you to go.

Your skills and knowledge have a role to play. Let your client know what can be done. Let your client know what others are doing. Warn your client about traps and tip your clients off about opportunities.

Talk about housing:

  1. Discuss helping adult kids buy homes.
  2. Help your client identify a new home.
  3. Help your client arrange a home loan, and get the best interest rate going.
  4. Introduce a good conveyancer and a good mortgage broker.
  5. Residential property is Australia’s best performing asset class. It’s averaged more than 9% per annum over the last twenty years.
  6. Link the Russell ASX Long Term Investing Report in to your SOA. Make sure your clients read the tables and diagrams on page eight.

In short, make sure your SOA is relevant to your client and discusses their home.

The Dover Group