IMHO, bad service shouldn’t be rewarded. If more clients will leave the lender due to bad service, the lender will improve their service. If the lender keeps retaining the clients in the last minute, the level of service probably won’t change.

Even if your agreement with the broker doesn’t mention a fee should an approval isn’t actioned by you, I would still consider paying him for his time. Had the same thing happen to me late last year. It’s very annoying to do all the work and eventually the client decides to stay with the same lender he wasn’t happy with in the first place.

Yes, you should be able to use the equity release as a deposit for an IP but you may want to consider having the new loan done as a split so once you do draw those funds, its tax deductible 😉

Hope this helps?

Cheers,
Ethan

Even if, for example, your wife’s super would have bought the house that is under your name (and none of you would live there, pure investment), would you really want to? The change of ownership would cause a stamp duty event… Why not keep it as an IP under your name?

Hey mate,

Each situation is different but generally speaking I like to manufacture myself the growth of my property. This can be done in various ways and it’s not only a lot of fun but very profitable as well. So you could buy a CF- property in a high growth area, turn it into CF+ quite quickly and enjoy the ride. It’s a double win! 👍😎

charles766 wrote:

We bought our deluxe apartment on a mortgage loan. It was bought at 10 percent downpayment for a period of 15 years. We opted for variable rate mortgage. I was thinking about changing to fixed rate mortgage when the rate gets the lowest. I read on this blog on the things to be aware of when you switch to a fixed rate loan. https://www.butlermortgage.ca/mortgage-news/going-from-variable-rate-mortgage-to-fixed-what-you-should-be-aware-of/ They say the lenders may try to hide the best rates. Has anyone converted from variable rate to fixed rate mortgage and felt it was useful?

Fixing rates has both pros and cons. I’m sure you could find lots of discussions about it both here and by searching online.

Will the bank hide their best rates? Perhaps. Why wouldn’t they? It is also very possible that out of the thousands of loan products that are available in the market, your bank doesn’t have the one that would most suit you.

I’m biased of course but even before I was a broker, I was (and still am) an investor and I’ve always used a broker. It’s great having a finance pro on your team 👍😎

Terryw wrote:

The agent is not making any money out of chasing a a tenant like this – approach directly.

Perhaps not, but it’s still their duty to finalise the tenancy with the tenant, isn’t it? I would talk to the RE principal and if needed, contact the governing body and lodge a complaint. Can’t see myself chasing tenants directly. That’s exactly why you pay a property manager…

Didn’t understand this bit:

how much is this screwup going to cost taxpayers?

Why would this cost anything to tax payers?

Sending notices overseas, however, will cost the body Corp more than sending to a domestic address.

I’m personally in favour of having the option to receive notices only via emails and save on the paper all together 👍😎

Well said, Terry.

I will just add to the above that once this setup is in place, all three gents are locked into it moving forward (servicibility wise). Reason being is that most lenders will assume each is fully liable to the debt of the trust but is only getting a portion of the income. Add to this that there will be no NG, and it’s easier to see why such a setup would limit future options of the parties.

blackhotel wrote:

The funniest post ever. 2.12% return. I just have to laugh Greg – in a polite way.My response:Your dreamin,Your 1st problem is Brisbane,Your 2nd problem is Property Purchase price of $220K – your dreamin!Your 3rd Problem is Property investing in Oz is a long term investment if you want to make $$$. Even if you make some profit the ATO will eat up most of your profit.Your 4th problem is you have not allocated the funds of being totally ripped off by the Qld tradies.Good luck with your figures!My advice – Get a job as accountants.LOL!!!!

Not the friendliest reply… 😕

The OP mentioned the numbers don’t work, hence he came to share here.

That said, I also disagree with some of the ‘problems’ you raised.

Property doesn’t have to be a long term investment. It is possible to make short term gains, although it’s less common and it’s good for cashflow, not so much for wealth building.

Also, the ATO doesn’t take “most of your profit”. That’s not how the taxation system works. The highest marginal rate is still under 50%.

There are good QLD tradies and bad ones, like everywhere, in all professions.

Wishing us all a great weekend! 👍😎

Are you dealing directly with the bank? If so, you could ask them why they want to have the LVR so low. Maybe it’s a borrowing power issue?

All good, was just surprised at the super high IRR value 😉

Anyway, well done! Excellent flip 👍😎