So I call my banker today as I have found another property returning 13%…
The conversation went something like
Me- ” Hi, I have found another property and need to act fast on it”
Banker – “Hmm, is it in a country town”
Me- “yes, but the town has > 10 000 people and is growing, with big players such as woolworth’s / macca’s all opening up / renovating”
Banker “Ok .. but have you seen the defense housing email i recently sent you ??
Me “Yes, but what does that have to do with what im talking about”
Banker “Why not go for something like that ??”
Me “whats the return again ?”
Banker “about 5 &1/2 % (he stated with confidence)”
Me “So its negatively geared”
Banker “ye ye yes, but with your income that would be a good thing”….”and the rent is guaranteed”
me quickly “yeah, but i have read the fine print and if an act of war was breaks out, the defense force has the right to remove tenants”
Banker…. loooong pause “but what are the chances of war breaking out”
Me… laughing “um – we are in one right now”….What i am getting at is i really don’t understand bankers logic… yes the property is in a country town, but you don’t need to be a rocket scientist to see that a 13% return is better than a 5.5% return … do you ?? Especially if you already own properties in inner city high growth areas ??
Thanks for posting, it gave me a laugh.
O M G !What do they hire these people on! Thanks for posting!
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email Mewhat an idiot banker, thats why hes a banker and not a property investors but still you would think he would be a bit more onto it.
so is he gonna lend you the money???
if not time to find a new bankerRemind them that he works for a bank, not DHA, he is not a financial advisor, just a loans officer, if they haven't disclosed their interest in flogging DHA property, what's in it for them (other than it would probably mean taking out a bigger loan),
I personally like the fact (apart from the fact that he wanted you to get a lower return) that he said you should go for negative gearing because it would be better for you. Umm running at a loss isn't really good for anyone……?! Must be less paperwork or easy for him to get paid for or something…….
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeDoes banker rhyme with wanker????
(Apologies to all those more professional bankers LOL)
What is a banker doing advising you, or pushing you, to buy a certain property?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Exactly next thing you are going to tell me he gets a kick back from the selling agent for the referal.
Another case which ASIC will have a field day under the New Credit Act. Thankfully they affect Bankers as well as Brokers.
Richard Taylor | Australia's leading private lender
. . . . and when the Banker raises loan interest rates to 12% and you're still in positive territory . . . .
It's always good to know your Banker's IQ, depth of vision, and creative investment limitations.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Ha !
Always good for a laugh, thanks for posting. It sounds like an average banker's IQ has to match the average bank interest rates
I have had two friends recently go into different Westpac branches and discuss loan options for IP's. On both occasions they ended up trying to get talked out of the idea of buying another property and got the hard sell on creating share portfolios. Banks just love to push their own products and the workers are just out to meet their current KPI's for their annual bonus'
I'm a big bank hater!
Call me naive but dont accountants, financial planners, lawyers, developers, real estate agents and mortgage brokers all do the same thing?
They all have their own agendas and they all know other people in related areas they will refer to…
Could be just the fact that most people who work for Westpuke are there just to collect a pay check. Everyone has their own agenda and people and products they want you to use or buy. It is just funny from a people watching point of view to see the agenda at work by some one guiding someone toward a poorer performing investment!
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeBurnie – it’s amusing that the banker I was talking about is also from WBC.. You can imagine how I cringe when I hear the “bank you can bank on” slogan … MAKES ME SICK !!
Banker – yes, accountants, financial planners etc do the same thing. However when you go to your accountant you would first expect to at least have your taxes done (the job you are actually paying them for !!) then you can listen if you choose to whatever other ideas / products they are spruiking. If bankers spent more time looking at the actual deal infront of them and do what they are actually paid to do, instead of thinking about their small minded little world.. Maybe our economy would start moving.
Keiko – I did not take it any further with him, or WBC. I went to a small finance company who shall remain nameless as I don’t want to appear to be pushing my own agenda !!
Hahaha what a funny post …
We were approached from representatives from a bank xxx … one of the reps got my boss aside and said they have thousands of gold brick leads and would be interested in doing a deal using my bosses qualifications (licenses) to sell property as long as we could find a way to pay them with out the bank finding out … (oh my boss declined because of "ethics")
Marketing companies, mortgage brokers and referrers alike can earn up to $50,000.00 in commissions just for selling a $350k property … do the numbers.
Now that I am older I am angry with our old accountant for giving us advise and getting kick backs 25 years ago – we were naive and unsophisticated then but not now …
Property investing really only became sexy after 2000 – because of the internet books and get rich quick seminars GREED and stupidity reins supreme
LOL!
thank you for that you have brightened up my day!
O M G !
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