Tim

Certainly looking at going myself as I’m sure a few forumites from the Somersoft forum will be.

The concept sounds great, so I am looking forward to it if I can get a ticket.

Might see you there.

Brendon

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Acute Mortgage Reductions
http://www.acutemr.com.au
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Hi Nat

I didn’t say the lenders refunded the LMI, the Mortgage Insurers will.

With PMI ,if you refinance and show 20% equity in the property within 6 months after settlement you are entitled to a partial refund (not all of the premium obviously).

Not sure about GE criteria, and in the case of certain lenders insuring themselves then yes you would apply through that lending institution.

Ring them up and check it out for yourself.

Brendon

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Acute Mortgage Reductions
‘Better Finance for More Homes Sooner’
[email protected]
http://www.acutemr.com.au

Servant

Accountants, lawyers and some brokers/originators will have access to professional investors who lend money for a living but this sort of thing is not for a novice. The interest rates will be high – 20%+, or in the case of a debt/equity partnership, half the profits.

I would suggest going with options first such as personal loans, family equity etc first before looking at these options.Anything to get into the market at a reasonable int rate.

The problem with saving (on a paltry 5%) and waiting years for enough deposit, is that by that time property prices may have increased again and you will have an even bigger mortgage than if you found a way into the market now.

Good Luck!

Brendon

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http://www.acutemr.com.au
[email protected]
‘Better Finance for More Homes Sooner’

Thanks Steven

I’m impressed. How do you monitor the client’s mortgage after settlement or do you have your own loan products?

Also how do you achieve a maximised valuation for your client? I know a few brokers who have good relationships with bank’s panel valuers but even they struggle to get decent vals sometimes?

Thanks for your time as I am forever in search in excellent brokers to give me more options when applying for finance myself.

Brendon

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Acute Mortgage Reductions
[email protected]
http://www.acutemr.com.au

Steven

What is wrong with brokers/originators charging a fee if there is value for money in the fee, and further services involved other than just sorting out a loan for the client? Services such as Mortgage reduction Monitoring, ongoing personal service, finance education on valuations, research etc

If the broker is just facilitating a loan through a bank then sure, the client should not be charged as commission is recieved from the banks.

One thing brokers cannot control is what happens to the client once they are ‘handed over’ to the bank after the loan is drawn down. You cannot guarentee then that they will recieve good service.

The question is, is there value for money in the fee, and can you get the same service and loan products elsewhere for free?

Brendon

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Acute Mortgage Reductions
‘Better Finance for More Homes Sooner’
http://www.acutemr.com.au
[email protected]

Hi Jacq

Does your Accountant work for the bank? Just kidding!

From a finance point-of-view, the problem with cross-collateralisation is that if your goal is to acquire multiple IP’s you have to keep adding more properties to this cross-collateralised mess until your bank says no more, at which time you have to refinance the whole portfolio to another bank/lender to purchase again, which will be costly each time.

There is no flexibility because you are tied to one bank who may not understand your investment goals.

Keep it separate and when you have equity in a property available to redraw you are free to do it to purchase another property.
It is not messy to get a line increase on your existing property, your manager is just too lazy to do it, or he/she doesn’t even have any IP’s of their own and is not educated enough to advise you.

As for breaking the fixed rate, a cost of doing business I believe. If rising interest rates concern you, think about a split fixed/variable loan.

Good Luck!

Brendon

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Acute Mortgage Reductions
‘Better Finance for More Homes Sooner’
http://www.acutemr.com.au
[email protected]

I agree with Aluminati, if it is growing and you can make it +cashflow/neutral by putting a cheapie house on it, why not keep it?

Further down the line you may have the opportunity to subdivide. We’ve all heard the stories about someone buying a large piece of land for next-to-nothing and years later being offered millions for a development site.Especially seaside towns.

From a finance point-of-view it will be much easier to leverage off and use the equity as a rental property as apposed to a rural, vacant block of land – not many lenders you can talk to about that and even tougher if you go into LMI territory.

Good luck!

Brendon

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Acute Mortgage Reductions
‘Better Finance for More Homes Sooner’
[email protected]

Elbowgrease

Why sell? Can you not keep your PPOR and leverage off that, or are you specifically looking to downgrade?

Seems to me from an investment point of view that selling a PPOR (and incurring costs) to buy another PPOR (more costs) to leverage off is a costly affair, although I’m sure the OSR will enjoy the stamp duty!

On the other hand if it’s an emotional decision and you really want to move, go for it, as all the money in the world can’t substitute for a happy family home.

Brendon[biggrin]

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Acute Mortgage Reductions
‘Better Finance for More Homes Sooner’
[email protected]

Sweetp

Why not give some more details so we can do a servicibility check for you?

Brendon

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Acute Mortgage Reductions
‘Better Finance for More Homes Sooner’
[email protected]