Forum Replies Created
“Two-thirds of the brokers investigated claimed to offer independent or impartial mortgage advice even though their recommendations came from a limited pool of lenders.”
There are only 4 banks, and they are THE major lenders, so I am not surprised to see this comment, it’s kind of like there are two companies that make sugar, and someone saying that Supermarkets only buy from a limited number of sugar companies… Well Duh’.
Media beat up. Though it is slightly worrying about fees, but it would be better for the people ti check out a number of mortgage brokers to find one that suits their needs…
Rgds.
Lucifer_au“and most importantly WE PAY THE DAMM TAXES”
I suggest you find a new accountant.
Rgds.
Lucifer_auUp your payments in terms of rental a bit.
Also perhaps it would be better going cashflow positive for your first one as you can afford to make a mistake, without it blowing your budget.
Definatly take in consideration Sooshie post too! There are many things you will have to weigh up… For example perhaps it would be better to take equity out of your property rather than selling it (as the property market is going soft @ the moment).
Rgds.
Lucifer_auI know I won’t be spending a cent on RE in NSW. The tax laws are pretty bad in Australia already, but this just takes the icing on the cake. Saying that though, people who rent out properties owned in NSW, be prepared to start charging alot more rent, as rental housing stock will go down dramatically, and so there will be higher demand [
].The politicans just don’t get it do they – What ever they do we will always find a way around it…
I must also note though, the NSW state gov. for the last 4yrs, has spent $4 Billion dollars, yet we still have failing hospitals, a dangerous train system and over development on a massive scale, destroying Sydney. So what is he spending the money on? My guess – media advisors.
Rgds.
Lucifer_auVery little on the investing side (except get your houses on TodayTonight!!!), but good to see what are market expectations for presenting.
As I said before, a tad disappointing for the investor (it was 100% on the seminar sie of his business).
Rgds.
Lucifer_auThe chief of the Mortgage Industry Association of Australia, Phil Naylor, noted that 74 per cent of the consumers enlisted for the investigation were reasonably confident or very confident with the broker they dealt with.
Non-disclosure of fees represents only 5 per cent of the complaints made against mortgage brokers to the Credit Ombudsman Service, the service’s manager, Bernhard Ripperger, said.
>So you’ve got 3/4 of cusomers very happy with their broker, and less than 5% about the costs…
Seems to me as another media beat up. As for the examples – there are plenty of bad apples in every sector of our society (used car salesmen, etc).
Rgds.
Lucifer_auThis arguement is in some ways rediculous. It all boils down to what Steve McKnight said Vrs what Channel 7 said…. But in the end who cares? The closest example I can find is NATO in the Balkins, part of it’s mandate/goals is to arrest suspected war crimnals, it hasn’t got all of them – but would you deem it a waste of time? NO. Because it has helped and done good. Is steve’s program helping people in educating themesleves to see how property investing is a fantastic way to invest? Yes, well then it’s doing good. And thats good enough for me.
Who cares if they come out millionaires, as long as they come out better than when the joined the course.Rgds.
Lucifer_au“Who would you choose, good tenants with great history OR potential risky tenants in desperate circumstances?”
Well theres two points to consider here. The fiirst is risk control – are the risky tenants likly to stop payting rent and you have to carry the house for a month? Do they trash places? If they do the above then you have to factor that into the price of rent you are charging.
The second factor is do you actually want the hassels??? Too me, No. I don’t want to have the hassel of having to go to court to kick people out, or have a fight over the bond – I just want my houses to sit there, and make me money.
But really it is a matter of taste (for want of a better word)
Rgds.
Lucifer_au“Firstly he claims that Garantors are no longer the done thing. Apparenlty the banks just aren’t into them anymore.”
>This is true. Banks don’t want the bad publicity of trying to take a Garantors house or other assets. banks will accept them (gladly), but it makes little difference if your loan is approved or not (unless the Garantor is kerry Packer…).
I’m sorry but I’m way too tired to start playing ewwith maths at the moment…
Rgds.
Lucifer_auAs I suggested write it in a Diary. That can be presented as evidence; You can give a letter, but compared to a Diary it is very poor (and wil mostly likly be ignored)
You didn’t memtion their own internal complaints department. Did you use them or not? If you didn’t perhaps ring them up and tell them very nicely that you want to talk about it, when you metion the $4K tell them you haven’t had any information on what this particular charge is for. Seem like you want to help them. You need a circut breaker and this is them (at the very least they should be able to clear a few things up for you).
The last way is to use a lawyer, it will be expensive, probably around $1K or so, but if it gets you out of the mess, time wise it may be worth it, you might also get out of pay some $$$.
Rgds.
Lucifer_auYes wraps are real BAD! And I will tell you why….
Purchased prop. in Tasmania for $15K, sold on 30yr contract, with extra $5K on the price. Now within 1 yr all the property prices had risen to $50K!!! How bad a deal is that for the wrap buyers!! – terrible!!!! Not only did they get a house (which the bank refused to lend them the money), but they have now more than $30K equity in it…..
But it get worse…. They now have refinaced me out and now they are paying lower repayments on $20K (even though there houe is worth $50K!!!), Dreadful!!
Some people say keeping properties would of been better and it would of been, but there all wrap buyers are happy…. & so am I.
As for your wifes comments: 1) The buyer can place a cavet on the property; 2) You can disclose to certain banks they are wrapping and they will still lend you the money to do so; 3) Perhaps your wife can explain how these people can get a bank loan? What they can’t? And you enabling them to own their own home… Hell IT must be a bad deal!!!; 4) Your missing out on a great profit potential because of someones bias (trillions of $$$ have been lost because of this – “o’h that area won’t take off”, “you can’t do that”, etc); 5) there are steps you can take such as joing the VFA to solve any problems you may feel, and the buyers seem to like the extra security, and most wrapers don’t take off with the money, they would rather go buy more houses… 6) Banks actually make a higher mark up on the interest rate, than we do.. fancy that… – L0L!!; 7) Your wife dosen’t like the fact the wrap buyer is not protected, well quite frankly neither are you – stop paying your mortgage or land taxes, it will take a while but the bank will reposses the property, all your doing, is starting the process faster, because you don’t get the advantages the banks do… 9) The wrap buyer gets independant legal advice; 10) The wrap buyer can protect his/her income with income protection insurance, I strongly recommend to my clients to get it, but if they choose not too and default on me, what am I ment to do??? They’ve got the legal advice and they know what will happen (usually I give them $500 when the leave the property and it is in good condtion). I’m not a charity though, and I won’t be taken for a ride.
I’ve been quite forceful (I think..) and my intention is not to be harsh, so you may like to edit it before you show your wife.
Rgds.
Lucifer_auWell theres equity in your other 4 IPs that you could use, as for saving it, you don’t need to save it all at once, you can get your properties revalued every 6 months, so buy 5 now, get them revalued, then use that equity and what you have saved to buy 5 more.
Of course it is alot harder that the market is going cold (so you don’t get the rapid property increases).
Also perhaps you should reasses your goals, and make your goal, where your positive cashflow equals your expenses, as this means you can get out of the rat race, start looking at alot more deals, meet other investors, and spend time with your kids, etc.
Rgds.
Lucifer_auL0L,
Good to see humor still in abundance!! Well just re-wrap ’em (and get that glowing feeling of getting another $7K FHOG).
Rgds.
Lucifer_auI’ve herd it’s mortgage insurers, as well as PR section of the banks (public relations).
As for 90% loans, work out total up front costs for each scenario, and figure out which one is cheaper.
As for banks and wraps, what are you currently doing at the moment???? Even at 80% lend, you still have to inform the banks if there are any material changes to ownership, etc. Of course some banks seem not to care, so long as you pay the mortgage, so figure out what would be best for you.
Rgds.
Lucifer_auI would start to pull together a team for this. You need to discuss this with a lawyer. In fact I would go to a lawyer ASAP to fnd out what your rights are. Also create a time line of when events that have happened (remmember names and as much detail as possible).
Also, did you use the banks on internal complaints department??? Perhaps it would be better if you go through the softly, softly way (with the black diary, as mentioned below), so perhaps give them a ring (but be nice!). Tell your lawyer to go softly initally too, if you have to use one.
I also would start to suggest you document everything in a diary, so there is a record of it (who you spoke to, what time, what did they say, etc). I would suggest you do this as you can use diaries in any cout dramas, as well as making everone know that you are holding them accountable. Also it looks like you are a professional, not someone the bank can screw over.
Lastly next time go through a mortgage broker too (it’s alot less hassel, and you don’t even have to pay for it..).
Rgds.
Lucifer_auBanks like Garantors but in the end you won’t be rejected because you didn’t have one. Rather it will be LVR as well as income level.
Due to the short history of your employment in SA, you might be required to come up with a higher deposit (perhaps a broker can help…).
Rgds.
Lucifer_auCommercial is differnet because the price is determined by a big part on wether there is a paying tennant, as well as how long their option on the premises is (as well as how rent increases are worked out (specified in the contract)); so there is no real formula – you have to crunch the numbers.
Rgds.
Lucifer_auGeorge1 doesn’t the gov. regulate us enough as it is?????
Taxes: Stamp duty, Land tax, CGT, GST, PAYG, FID, payroll, etc, etc…
And thats just with taxes – I would hate to see them try to regulate, well anything …. But maybe I become a capitalist…
Rgds.
Lucifer_auHis book as one of rich dads advisor wasn’t ment to teach you how to invest in RE, but why RE is one of the best ways of creating and making wealth.
As for the other book… which one????
Rgds.
Lucifer_auWraps is simply trading stock – just this time your stock is property, rathyer than another item.
Steve is 100% correct, so 0% CGT.
Rgds.
Lucifer_au
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