Down, down – rates are going down

Cheers

Jamie

I've done ok with WBC and CBA pricing requests over the years.

Sometimes certain brokers linked with certain aggregators can offer exclusive products only available through the broker channel – that might be what the broker is getting at.

There are also times where a brokers relationship with a lender can result in a better rate for the client.  

Having said all that, it should never be primarily about rate – structure is more important so I'd be quizzing the broker over this rather than "what his best rate is." 

Cheers

Jamie

Hi Ralph

What are you expecting to get out of a financial advisor? They are rarely a good option in terms of professionals to contact when investing in property.

Instead, and it will sound biased, but a good broker, accountant and perhaps buyers agent would be a better start.

Cheers

Jamie

Yep good point – keep it all independent. 

The agents only role should be selling you the property.

When you work out who you're going to use for property management in the area, ask them for some recommendations on who to use for some of these services.

Cheers

Jamie

They get listings, sell property and charge the seller a percentage of the sale price for doing so.

Most of them operate independently – getting listings on their own, under the banner of the franchise that they work for.

Cheers

Jamie

Hi Lukelee

Taking it back a step.

What are you aiming to achieve from property investing?

When taking out a loan, you'll be asked if you anticipate any changes to your future financial situation – which quitting your job would fall under.

Cheers

Jamie

Hi there

Welcome to the forum.

It's not possible to re-gear a loan in that way.

You'd only be able to claim a deduction on the remaining $110k loan – which should be changed to interest only if it hasn't been already.

If you increased the loan – the increased portion wouldn't be tax deductible unless it was being used for investment purposes (which isn't the case here).

You could look at a spousal transfer but there is likely to be costs involved – it's just a matter of weighing them up against the benefits.

p.s – Don't make the same mistake with the Chelsea property. If you think it may become an IP at some point, then set up the loan as interest only with an offset and place any spare cash you have in the offset rather then paying down the principle.

Cheers

Jamie

I don't think it's difficult for a first time investor to add value to a property.

You don't need to carry out the work yourself. You just need to be able to know what you want done and coordinate it.

Personally, I don't have a strong preference for units or houses – if the numbers stack up and the deal looks good, I'd buy either.

If a strong rental yield is your primary motivator then maybe broaden your search to outside of major cities.

Without some growth though – it will be difficult to grow the portfolio.

Cheers

Jamie

haha – I love it!

1. I don't know too much about their offerings but I do know that you can learn about renos without spending a lot of money. I like Nathan's post. I also can't tell you how many times I've referred to youtube for DIY tips!

2. I'd usually wait until after the offer is accepted. Arranging one beforehand show's you're pretty keen (which isn't good when negotiating). If the report comes up with something a bit dodgy – you can always ask the vendors to address the issue or drop the price.

3. I think they're much of a muchness.

4. You can.

House of wealth are good accountants. Not sure about tradies or solicitors.

Cheers

Jamie

Hi Devliz

Sounds like the damage is done with the current loans.

Just make sure they're structured correctly from now on – and avoid using them for your next PPOR purchase. They'll tell you that there's nothing wrong with cross coll and if you take out the next loan with them they'll give you a rate discount on all of your borrowings, etc etc – but don't listen to them, I'm sure if given the chance, they'll make a mess of your next on as well.

Cheers

Jamie