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
Alistair

god_of_money wrote:

I guess that why not pocket an extra A$1000+ if I m going with IngBank again

Hi 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
Alistair

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.

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
Alistair

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
Alistair

Steve McKnight runs a professional mentoring program, why don't you give it a try.

Regards
Alistair

Hi 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

Hi 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
Alistair

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
Alistair

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
Alistair