Quite often clients will use defects on a building and pest inspection to marginally negotiate their contracts down lower. Realistically though an unconditional offer would likely get you that lower price or even lower again, so I don’t particularly see this as a ‘strategy’.

While you’re at it – why not just call up the building inspector and ask them the question? They’re going to be the most informed person around who is going to be able to help answer that question.

Mike wrote:

I’ve seen lots of successful partnerships in the UK (now I’m in Brisbane looking to partner and looking to invest). Generally they’ve been successful because each person is bringing something to the table the other wants or needs. For example, one person has money but no time or knowledge on finding deals… another example, a builder and investor… one has skills and the other has business acumen.
Understanding and confirming the intention of the partnership and the exit strategy are key.
Corey makes some good points but in my opinion problem partnerships are a result of poor up front planning and communication. Find the right person/ people, get your documentation squared away and go for it.

In theory yes it’s all just about finding a ‘good’ partner. In reality the way the taxation system and finance system in Australia are setup you are penalised for being in a partnership. Any changes in structure can trigger substantial taxation liabilties, joint debt ownership of investments is HEAVILY detriminental to your future borrowing capacity etc.

The only way you can avoid these two major issues is to have joint borrowings for ALL debts for life, never dissolve or alter ownership and do not expect to borrow solely in a personal capacity. Let’s have a guess how many partnerships can fit those parameters outside of a spousal relationship?

A continually declining population which has been reducing for over a decade, with a vacancy rate which continues to grow, almost three times higher than it was half a decade ago. Not real strong drivers to reverse these trends.

I’m not seeing the value in purchasing in Broken Hill at all.

What does the lease say? Generally with commercial, you pass on any non defined costs/upgrades/repairs to the tenant.

Dan – my brokerage has the full panel of commercial lenders, and a number of off panel lenders outside of the aggregator who deal with specialist lending. To be honest it’s much the same as resi accreditations, some of which are actually bundled to the residential accreditation. Likewise there’s always lenders beating down the door to try get five minutes to show their product and policy suite.

I’m not sure what you’re getting in regards to the aggregator relationship assisting with APRA – for the most part aggregators primary role is within commission management and lender liasion for minor admin issues – likewise APRA isn’t touching on commercial.

As per experiences with commercial, a quick look at the workflow shows 8 commercial transactions in progress today, ranging from business finance, development to SMSF CIP purchasing. Of the lenders on panel, ~20 of them would be playing in the commercial space (which is a broad spectrum).

The idea is that those with high incomes will generally have higher living standards/expenses. It’s more likely they will have more expensive private school costs, cars, holidays etc.

Yes some people may be tight with their money in any income bracket, but the financial system is meant to work on the majority for stability, than individuals.

There are two main factors with any finance deal – EQUITY and SERVICEABILITY (borrowing capacity).

Guarantees for the most part are to resolve the EQUITY issue, the serviceability requirement still remains.

That’s some real money for a fine!

Jamie Moore wrote:

dboyle794 wrote:

Us investors are resilient like cockroaches we will survive. These changes #iss me off because its the first time investors that will struggle to become successful.

Absolutely – especially if you’re on an average income. I’m even seeing some clients on high incomes hit a borrowing capacity wall early because of these changes.

Exactly – I’ve seen a surge of business coming from borrowers who previously went to branch for all their lending but are being told NO MORE. It’s getting harder and harder for someone to blindly stumble their way to success with the screws being tightened so much.