Why You Should Use Specialists When Buying or Selling Property in New Zealand

In this Episode, Joel Sadler speaks with Scott Miller, owner and founder of Advanced Mortgage Solutions, about why using specialists is important when buying or selling property. 

Scott explains that licensed professionals can give compliant, competent advice that bank staff may not be able to provide, and outlines where different specialists fit in the home-buying timeline: starting early with a mortgage adviser/financial adviser for preparation and pre-approval, then involving real estate agents, solicitors, building inspectors, and registered valuers at the appropriate stages. 

He discusses when second-tier lenders may be needed (such as adverse credit circumstances), the value of a broker’s trusted network of professionals without referral fees, and why legal advice is critical—especially with private sales and sales and purchase agreements. 

The episode also covers using accountants for property investment structures (trusts, companies, personal ownership) and the added complexities in Christchurch post-earthquakes, including insurance/EQC work, ‘as is where is’ properties, and lender caution. 

To book a free meeting with Scott or his team head over to: https://www.advancedmortgagesolutions.co.nz/ 

00:00 Welcome to the Podcast + Today’s Topic: Why Specialists Matter
00:32 What a Specialist Actually Does (and Why Licensing Matters)
02:27 When to Start: Getting a Mortgage Advisor In Early
03:33 The Property-Buying Timeline: Broker → Bank → Agents → Lawyer/Inspectors/Valuer
05:20 Mortgage Broker vs Bank: Pre-Approval and ‘Security’ Checks
06:25 Why a Solicitor Protects You (Recourse, Contracts, and Risk)
07:16 Trusted Referrals & No Kickbacks: Building a Network You Can Rely On
09:32 Property Investing Structures: Trusts, Companies, and the Right Accountant
11:00 Private Sales: Don’t Sign Anything Without Legal Advice
12:44 Real Example: Unconsented Driveway Found in the LIM
13:59 Christchurch Earthquake Nuances: EQC Work, ‘As-Is’ Homes, and Extra Due Diligence
15:33 Wrap-Up + How to Contact Advanced Mortgage Solutions

For assistance with a new or existing home loan, reach out to Advanced Mortgage Solutions today. www.advancedmortgagesolutions.co.nz 

Transcript

SPEAKER_01 0:07

Alright, hi everyone. Welcome to the Advanced Mortgage Solutions Podcast. This podcast assists people on their property journey. Whether you're a first-time buyer or a seasoned investor, we cover all topics. I'm Joel Sadler and our mortgage expert today is Scott Miller, owner and founder of Advanced Mortgage Solutions. In today's episode, we discuss the importance of using specialists when buying and selling property. So welcome, Scott. John? Yeah. Tell us a little bit about why someone should use specialists when buying and selling property as opposed to trying to do things themselves.

SPEAKER_00 0:40

Yeah, well, look, the the the sort of advantage of using a specialist in the area that they are specialists in means that you're getting really good professional advice. So by using a financial advisor, for example, um a lot of the time you'll be able to give personalized financial advice to that client that say some uh staff members at the bank can't give because they don't have the right licenses. Um there's now exams that you have to sit to make sure that you're competent in your area. Um you know what you're talking about, you can handle and hearts legally give financial advice. Um, because the banks are so big out there, they they don't always have you know everyone covered off with the right licenses to give that advice, so that those people have to say, hey, actually, I I know you're asking me a question around this, but at this stage I'm not actually able to answer that. Um and then it also drifts into all areas of buying a house, you know. So um you'd certainly use a solicitor for legal advice, you know, you'd use a property inspector for a building report, you'd use a registered valuer for evaluation. You know, um, there's all sorts of specialists that can help you out in the process of buying a house. And it's just drilling down and knowing when to use that particular specialist for the purpose of what they do in the sort of timeline of what you're looking to do.

SPEAKER_01 2:04

Yeah. I think that was part for me was a little bit confusing when I bought my first home many, many moons ago. I ended up actually going online, I think, and sort of googling the process because I didn't I didn't know, you know, and uh ended up um using a mortgage broker and it was you know really helpful because they could guide me as in, hey, look, you need to find a solicitor, you know, this is during the process, you know, work with me, this is the process going to happen. So can they book a meeting with you at that early stage and just sort of say I have my deposit or or I'm looking to I'm ready to go kind of thing, but I just don't know where to start.

SPEAKER_00 2:36

Look, absolutely, and we encourage it actually because it allows us to do some homework in behind the scenes before we're really approaching any of the lenders for finance. So if there are some um bits and bobs that might trip us up if we just you know told the story as it is right now, um there's a you know, there's a chance that one or two of those positions might upset the process of getting approved. So the earlier we're involved in that, the better. Even if it's like, you know, a year out even, we're still doing the numbers and everything to sort of uh make sure everything's the way it should look. And again, by going back to those specialists, plugging myself in would be one of the most earliest specialists, I suppose, because really getting assistance from a you know a valuer or a building inspector is only really going to take place once you've had an offer on a house, you know, accepted, which might be several months down the line. It doesn't mean you don't use them, but they're plugged in at a different timeline to when you come and see me, for example. So typically, in order of seeing the specialist, it would be going to see a financial advisor first to make sure that you're in the picture of being approved. Uh, the specialist then would take you to a lender. Um, most of the time you'd be looking at a mainstream lender, what you and I would call a bank, um, as opposed to a second tier lender. You know, they have a position out there in the in the marketplace, but typically it's it's for things that are a little bit oddball. Not buying a house, for example, the first port of call, it would be very unlikely to go to a second tier lender unless there were some other circumstances like financial adverse credit history or something like that. Then they'll got their own little cubbyhole um of assistance. But most of the time um you'd go to a bank. Um, at that stage, then you'd be introduced to the real estate agents and the like out there that would be selling the houses, um, and that's when we sort of plug you into a solicitor, um, some solutions around building inspectors, you know, and then um the banks now have a process where we have to um order the registered value. But again, you're getting that specialist doing its specialist job. Um, so that would be an overall helicopter sort of view at the timeline of inserting the specialist at the right time of buying a house.

SPEAKER_01 4:49

Yeah, that makes sense. And I just wanted to confirm thing at one point you said come and see, yeah, see a financial advisor and they'll connect you with the lender. You mean yourself as a mortgage advisor for the other.

SPEAKER_00 4:59

Yeah, I mean I know the public call us mortgage brokers. Um, we're we're financial advisors. Um, everyone knows us as mortgage brokers, and technically we're not even allowed to call ourselves mortgage brokers. If you look at the law, it's a bit a bit of a funny thing. But if I am a mortgage broker, but it's just what the public has ended up calling us. So, yeah, plugging into that mortgage broker, sort of financial advisor um right from the start, it's it's probably it's almost always your first point of call because ultimately most people need a mortgage to buy a house. We don't have enough cash just to go out and buy a house with our savings. Um, and it's it's good to know that we can get a pre-approval underway. So most of the process of getting approval is already done. Like the individual applicants have now been assessed and approved, and you get a pre-approval. And now, all is part of the second part of that pre-approval is that the bank needs to assess the viability and acceptability of the house that you're purchasing. Uh again, use a silly example, we get a residential approval and someone tries to buy a petrol station. That the answer's gonna be sorry, you haven't made the right kind of application to buy a petrol station. So in this instance, we're going to decline the security of the petrol station. Yeah, I mean, you know, I'm exaggerating for a quick. Yeah, can you fill her up while you're you're getting out of bed? Yeah, yeah, yeah, yeah. So uh those sorts of things are also checked off, obviously. Um, the importance around the solicitor and using a solicitor is that you know, if if anything should happen through that process, you've got recourse against the decision making of a solicitor through, you know, the New Zealand Law Society, for example. Um, so again, you're getting that support from the professional and also any kind of um mishaps, not very often do they happen, but if a mishap did happen, you've got recourse to that mishap because they're a specialist in their area, they're licensed in that area, similar to me, um, similar to a building inspector, similar to a registered valuer. You know, they've all got um things to meet by law and by good conscience as well. So um it's another reason why to stick to those professionals.

SPEAKER_01 7:11

Yeah, that makes a lot of sense. Um, and look, uh correct me if I'm wrong. Um, the benefits of someone coming and talking to a mortgage uh broker or mortgage advisor like yourself, as opposed to working directly with a bank. Um I would assume that banks um, you know, don't necessarily want to recommend certain lawyers or be kind of biased towards certain people with yourself. You could you you know you'll be working on a daily basis with experts and all of these professionals. So your Rolodex, for what a, for want of a better word, is very valuable in terms of that look, these are the top three property lawyers to deal with in Christchurch, for example. According to me, does that make sense? Yeah, no, according to you 100%. So you've got trusted advisors that you've worked with for 20 plus you know years that you know in and out.

SPEAKER_00 7:55

And the individual advisor at a bank who works for the bank is sort of part of a much bigger machine. So they they may or may not have the same kind of contacts that I have because they're sort of swallowed by the big machine that that is that particular bank. And of course, there are massive organizations, you know, thousands of employees and turnovers of billions of dollars, as you're aware. Um, so you're sort of coming down a few notches in size and getting that more personalized advice, I suppose, which also means that, particularly like myself, being around for the 20 years, you sort of get to know, hey, look, these people are good at this, and those people are good at that. And so we do plug our people into people that we trust. Uh I'm allowed to receive um a fee um for referring people, but we've chosen not to. We we just refer people that we trust because we know they're good at what they do. Um, there's no financial benefit for me to give them um that name or this name or that professional's um contact detail.

SPEAKER_01 8:52

Yeah. Well, that's probably part of why you've got so many, you know, five-star reviews, is if you're you know you're basing solely on service and trust and expert referrals. I mean, you know, it builds longevity in your business and your reputation over time, too, doesn't it?

SPEAKER_00 9:06

And I do have to protect that name, you know. So um that's why I do change out to um refer people that are really good at what they do, because in a sense, I'm also handing over my name by saying these people are good at what they do, and I don't want my um clients or customers having a bad experience on something that I've said, hey, these guys are really good, um, because that sort of flows back on me a bit, and I'm not really, you know, in for that. Yeah.

SPEAKER_01 9:31

Yeah, 100%. What about people that are more looking to set up some sort of structures like you know, family trusts or a company for property investing? Would you bring in an accountant in at that stage as well? That's really good point.

SPEAKER_00 9:44

Purchasing a rental property, for example, it would be a really good idea to talk to an accountant for the taxational benefits of owning a rental property. Uh, should we, you know, buy it under a trust, under a company? Should it just be bought under your own name? Um, that'll change regarding um your personal circumstances. Like if you're a mum and dad um looking to buy your first rental and possibly your only rental, then the accountant may suggest just doing it under your own name is the best way. Um, equally they may say, hey, no, look, uh, there's the chance later on you might add a second one or something like that. So a company is a better offer, uh, a better option, I should say. Um, and then, okay, because I'm buying a rental portfolio, should I protect my own house by putting my own house in a trust? Um, so it sort of completely separates them from my rental portfolio. So a really good example of getting professional advice. Um, look, there's a lot of accountants out there, and not all of them are absolutely plugged into the property side of accountancy. You know, they're more business accountants. So when you're out there talking to the specialists, just make sure that they've got some information and understanding knowledge about, you know, property tax law as well. So yeah, that's a top-notch example there. Yep.

SPEAKER_01 10:58

Yeah, brilliant. Um, and if someone comes across a property that is being sold by a private seller, by an individual without a agent involved, um I suppose in that process it's probably more important to even have lawyers involved just to check everything out because you know, sometimes people can do that and they might have done multiple times, but if it's the first time someone's trying to sell a house privately, you know, they they may not necessarily know what they're doing either, right?

SPEAKER_00 11:25

And although, you know, a lot of the process of buying the house is a financial decision, when you go to sign something like a sales and purchase document, regardless of whether a real estate agent's involved or not, you're now signing a legal document. You know, and that's so so it's so important to get legal advice around a legal document. Um, some people don't realize that once they've signed a sales and purchase document, you you're sort of beholden to see through that agreement that you've had with the vendor to the end and changing your mind and saying, okay, actually I've changed my mind, I don't want to buy that house anymore, is not a reason to get out of the contract.

SPEAKER_01 12:06

Yeah, right. You've signed it.

SPEAKER_00 12:09

You'd have to say, actually find something wrong with the house for you to be able to say, Oh, now that I know that it hasn't got a can, you know, consent for the I don't know, conservatory or something, on that basis I'm pulling out of my offer. That's completely normal and completely okay. But just going, oh no, I've changed my mind, I don't want to buy that house anymore. You've made a commitment to buy the house that is is higher than just changing your mind. So again, it's that kind of legal advice from a professional that can say, okay, here's the pluses and the minuses to the decision that you're making in this offer.

SPEAKER_01 12:43

Yeah. Yeah, it's actually interesting. You mentioned consent, the recent property that we've purchased that we're in now. Um the driveway wasn't consented. It's a reasonably new, you know, new home. We didn't build it, but it was a couple years old when we bought it. And uh the driveway was just sort of rushed through kind of last minute, and and the consent process wasn't completed. So the lawyers found that. And I'm really glad that they did because obviously, you know, there's cost and not mucking around after the fact, you know, and we didn't we didn't really necessarily leverage that or anything, we just wanted it to be consented, and so they rushed the consent through the council and got it done, you know, which was great.

SPEAKER_00 13:19

But the last thing you want to be doing is buying someone else's problem, and and essentially you could have been buying someone else's problem if you hadn't got that legal advice. So so that another great example of just getting that professional in to fully drill down and understand what's going on. A lot of people try and read their the LIM reports themselves. Now, there's nothing wrong with trying to read it yourself, but unless you're a lawyer and know it from a legal angle, do you know the ramifications or situations that a particular non-consented item could have over a purchase? Well, I I don't, but you know, a lawyer would. So yeah, yeah.

SPEAKER_01 13:57

Yeah, interesting. Brilliant. And I suppose, you know, another thing that um it's we've kind of you know quite far down the track now, but obviously with the earthquakes that happened in the Canterbury region, there were so many different nuances and with property exchanging hands post the earthquakes happening, the insurance claims moving with that property to that one, so so much, so much mess, wasn't there? I bet you've seen some interesting things play out.

SPEAKER_00 14:20

Yeah, very much so, you know, and if you take it to the extreme, uh, you know, the the the properties that were considered write-offs as such, so they were called as is, whereas purchases, you know, a lot of those companies sort of sprung up and started to fix those and then you know, re-enter them into the market, uh, you know, fixed, ready to go again, fully insurable. Um, and initially some shortcuts, I believe, were found out. And so the lenders were particularly sort of cautious around those kind of uh purchases and asked for a whole heap of extra information just to make sure that it the property really was what it says it was. Um, so again, getting those specialists in there to make sure that the UKC work had been completed to a tradesman-like standard. Um, it just wasn't a snap of paint and a bit of bit of a bodge job to make it look better and behind uh behind whatever was still the the the original problem that was considered um an effect of the quake. Um so yeah, look it important on so many different levels just to get those professionals in and to make those checks. And as you've alluded to, even more important in Christchurch because of those events that happened in 2010 and 11.

SPEAKER_01 15:32

Yeah. All right, Scott, look, thanks so much for sharing your wisdom today on you know why it's so important to use specialists across the board. If anyone's looking to start their journey, as we mentioned, to get access to you with all your knowledge, but also that Rolodex of your recommended you know specialists across the industry, how would they best get in touch with you to book an appointment or move forward?

SPEAKER_00 15:51

Look, all of our information's on the website, but uh mortgage solutions.co.nz. There's contact forms there, there's phone numbers, email, you know, everything's there. There's a lot of information if you're just searching the different types of mortgages or different types of purchases, it's all there on the on the website. Brilliant. Lovely.

SPEAKER_01 16:12

All right, thanks guys.

SPEAKER_00 16:13

We'll talk to you next time.

SPEAKER_01 16:14

Cheers.