Forum Replies Created
Hi Scamp,
I suggest you learn a bit about the dynamics of the property market in Australia. It is completely diferent to Europe. You may be correct about property prices tanking over the next few years but your reasoning is flawed. If you do some research you will also find that the Australian property market does not trend in a uniform pattern, there are widely varying trends accross different markets. Some are driven purely by supply and demand and where there is a shortage of housing it is simply not a factor of how much someone is willing to pay it's more like what what the seller is willing to sell for.
Regards
AlistairScamp wrote:Property is a NO GO until at least 2011. Invest in gold and an economics study if you want to become investors.The fact you had to come here to get help means you are not prepared enough, or not smart enough, probably both.
Hi Scamp,
That's a touch arrogant don't you think. There are some very smart, experienced and successful people who come on here, as well as people new to investment. Why don't you tell us a bit about yourself so we can make an informed choice as to what your opinions are worth.
Regards
Alistairgod_of_money wrote:I guess that why not pocket an extra A$1000+ if I m going with IngBank againHi Don,
If all you are after is someown to process a loan for you, then you may as well go with a broker that gives you a rebate. However, for most investors the problem is structuring your loans and using lenders that allow maximum flexibility, tax efficiency and servicibility. You generally get what you pay for in this world and and you are unlikely to receive particulalry high quality advice from someone who has to buy your business.
If you use Peach or a similar company ou may be lucky and get someone very knowledgable who can give you a first rate service, but I wouldn't bet on it. As an investor your needs are or will become more complex than a simple home owner.
Regards
AlistairBoth Investors Direct and Investor Finance are reasonably large organisations, so there will be large variances in the experience and aptitude of different people within them. With ID the brokers are all salaried (I think), whereas IF uses a franchise model.
Regards
Alistairwealth4life.com wrote:Yes brokerage fees … I think the public are getting smarter though why would I pay a 1% fee when I can go direct and not pay it …I also see today the St George are introducing a broker performance fee structure … looks like brokers will need to get a second job soon …
The problem has always been that when you are in a competitive business people discount for business like 1% real estate fees …
D
My take ion the current environment is that these changes are going to be good for the broking industry, there are too many incompetent brokers who add no value to their clients, this is probably the beginning of the end for them. Better brokers will continue to prosper even if it becomes necessary to charge clients directly because they have a value proposition.
Hi Michelle,
Most people take on a number of smaller projects to raise the capital to go on to a larger project, so it may be going backwards not to develop what you already own. Having said this, there are many people who never build and do very well out of selling land with permits.
If you do decide to develop you will need to contribute around 20% of the costs (your equity will form part of this contribution), so make sure you have enough cash or other equity behind you if you decide to take this route.
Regards
AlistairQuote:Hi Jo, I am also a new client of I.D. and was surprised when Doug suddenly left as he seemed like an excellent strategist. I really appreciated the initial free phone consultation which went for over 1.5 hrs – no obligation. Really got into the nitty gritty of where we were at and where we wanted to go with our careers – personal and investment. Well rounded overall assessment of our situation backed up with an itemised plan of action for us to act upon if we felt comfortable with it.
I guess his place will be filled soon enough but in the meantime I might take Darren's advice and contact Michelle.BTW, anyone going to the upcoming round of Bill Zheng seminars?
I would suggest to all those on this thread that you don't take Darren's advice and call Richard Taylor instead. There is a reason why the people in the ID office in Brisbane work as employees and similarly there is a reason Richard has his own business.
Regards
AlistairI've got a good mate who is a very senior executive with Bankwest. I recently did a loan for him and got a far better deal for him elsewhere, despite his position. With a loan over $1 mil you will get a good deal out of any of the majors, and St George is worth speaking with also. When choosing a lender you also havce to realise that the current climate is not the best for negotiating discounts, so don't set your expectations too high.
Regards
Alistairsumnerstephen wrote:Hi all. Has anyone heard of Premium Finance? I've just had a cold call from them offering to send a consultant to show me how I can access a $6500 tax rebate for mortgage payments (no obligations). Some new government incentive. I'm still curious as to how they make their money.Any comments appreciated.
The fact that they quoted a dollar amount for a tax saving without knowing your financials would suggest a meeting will be a complete waste of time. People are always looking for some secret that will put them ahead of the pack, so making claims such as this is good marketing, but there is no way they will have better knowledge of potential tax deductions than any decent accountant. I would go further though and say there is a 99.9% chance that they will know less.
I remember speaking to a forum member some time ago who had received advice on structuring their loans from one of the many debt reduction companies out there, and what was proposed to this person was blatant tax evasion.
I should note that I know nothing about Premium Finance, they might be fantastic, but from the sales pitch I doubt it.
Regards
AlistairIt depends heavily on the type of property and where it is located. I like CBRE as a rule but have also had some bad valuations from them in areas where their expertise and experience is limited. Hegneys have been OK, Christie Whyte Moore are also pretty good.
Regards
AlistairSteve McKnight runs a professional mentoring program, why don't you give it a try.
Regards
Alistairxpine73 wrote:I got 0.85% off the standard variable rate from Westpac today, with a $300k size Rocket Repay home Loan.If this is true the banker who quoted you the rate is going to have great trouble getting this signed off, Westpac have a stated policy of not discounting loans under $800K, they used to discount at lower amounts but not in the current climate. I hope they go through and give you this discount, if so you have done particulalry well.
Regards
AlistairHi 5ijts,
If you want to find out more about commercial p[roperty have a look at http://www.gal.com.au Chris Lang who runs this business is in Melbourne, so is easy to contact but there is plenty of free info on his site as well.
Regards
Alistair
Setting up a structure for LOE is pretty easy, you use a LOC or cash out and place the funds in an offset account against one proiperty and use the borrowed funds to make interest payments for other loans. The question you have to ask yourself is how you are going to exit the higher debt position at some stage in the future. You cannot expand your debt position indefinately without significant risk.
With regard to lenders, I very much doubt it would be in your interests to go outside of the banking sector for your loans. Non bank lenders almost always securitise their loans, meaning that your loans would be mortgage insured even if your leverage is less than 80%. This would likely cause you some issues, and probably money, in future. Your loan amount is enough to negotiate your rate down a little in any case so any difference in immediate cost will be negligible.
Regards
AlistairHi Swany,
If you keep the same structure, when the property becomes an IP you will have to change the way you use the account, you will not be able redraw for personal use any more without endangering the deductability of the debt. Hind sight is a wonderful thing, but if you had been set up with and interest only loan and offset account from the start you would be in a significantly better situation moving forward (in terms of your structure for tax purposes). I would suggest you see a mortgage broker who knows what they are doing and also speak with your accountant re what structure is best for you moving forward.
Regards
AlistairHi Sross,
Can you please pm or email me through the site. I'm interested to hear more.
Regards
AlistairQlds007 wrote:Hi MattJust rang the CBA Qld State credit manager who tells me that both wraps and RTB are definately not allowed.
I have previously been told that any brokers putting wraps through Colonial are risking their accreditation. I would be very careful in dealing with wrappers Matt.
Regards
AlistairIP Freely wrote:Speak to your business banker, not the gumby at the front desk.
This is commercial lending for commercial purposes isn't it?I concur with this. This is a situation i have come accross quite a few times, you shouldn'y have an issue if you use a business/commercial banker.
Regards
AlistairCattleya wrote:Hi there…I also read Steve's book a long time ago and thought it was .. basically, crap. Sorry Steve….
I understand that Steve probably uses a lot trusts like Trakka said. But isn't that illegal? I mean, he gets lots of loans without declaring all his financial liabilities. Way too risky / daring for somebody like me. So while this method works for him, I think it is not for me… hence there's very little new knowledge I got from the book.
For property valuation, gearing, etc… I already know as I'm an accountant. The thing I need to know is financing. And given the suggested way is, prima facie, dishonest and could back fire… I dismissed this as crap and passed his book to another friend.
For all out there… if what I think is wrong, please enlighten me. Any input is greatly appreciated.
Regards,
Cattleya.Hi Cattleya,
If you are a small residential investor, the experience you would have had with your banks servicing criteria will have been very different to, for example, a commercial investor. Most large commercial loans are assessed via an interest coverage ratio, determined solely by the income from the property. Given the stated returns Steve was receiving from the properties mentioned in his first book, it would be fairly safe to assume that his financier was using a similer criteria despite the properties being residential.
Regards
AlistairHi Richard,
I agree, but I would go further. I am constantly frustrated with the poor overall standard of our industry, and I think forums like this are very good for putting brokers under scrutiny. Everything you say on an Internet forum is up for scrutiny and brokers (and other professionals) who have been long term contributors have obviously stood up to this and come through. I can't think of a better or more rigorous screening process.
Regards
Alistair