Forum Replies Created
Agree with the above – if STG don't want to do it, there are plenty of other lenders who are hungry for business at present – some of which are offering cash rebates to offset the costs of refinancing to them.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
ryan mclean wrote:I would only consider option 2 if you are in an extremely high tax bracket and you wanted to offset your tax using the depreciation of the property. I don't know if that specific area is high capital growth though…I think option 1 will be negatively geared more than option 2.
With option 1, the depreciation will be less and the rental yield will likely be lower. However, there is much more room for value add and I think longer term growth due to the land content will be much better as well.
The historical growth (last 10 years) in Canberra has been quite good.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Terryw wrote:I have found that some people just use you for the expertise and then disappear at the last min and possibly go to one of these brokers to get some of the comm back. So to prevent this I think you have to charge a small brokerage amount, maybe $500, to help prevent this. But if you do this then maybe you woudn't get as many clients.That's another reality of this industry and Terry is right, I think fee for service will probably start to become more prevalent for those brokers who deal with more complex scenarios and are able to provide more value to their clients due to their specialist knowledge.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Marty McDonald wrote:robwilson wrote:
To start up with a mortgage aggregator or try and build up my own panal of lenders ?Major pit falls of the business to watch out for ?
Is this a very tough bussiness to get clients in ? what would be the average amount of loans processed per month for a good broker working on his own ?
Best lending software to use ?
Ideas to start and grow my own business with limited capital ?
1. You need an aggregator/ most lenders won't direct accredit you unless you do certain volumes with them…like a lot of volume.
2. Ultra competitive. Potential clients being mecinary in their decisions. A lot of brokers earn very little. Dealing with banks can be really frustrating. Long hours. Night time appointments.
3. Yes very tough. Average accross the industry is $600K per month (2 or 3 loans) which is not enough to live off. It costs at least $20,000 pa to run a broking business + your time / wages say $50,000 minimum. If you are not getting trail (takes a while to build up and many lenders dont pay it in the first year) you will need to settle about $1,300,000 a month to break even. Most dont do this.
4. Aggregator will supply it.
5. You need at least 12 montsh income up your sleeve to even consider a carrer as a broker.
I don't mean to sound negative but its a tough game. When I am busy I often work 12 + hour days and sometimes you get a run when nothing is going right, clients dick you around, banks dick you around and you basically are working for nothing.
From client first contact to actually getting paid is usually at least 3 or 4 months but can be 18 months or 2 years or whatever. There is a very long lead in time to make it a viable business. You also end up answering a lot of questions and running endless scenarios often for no reward.
It can be a great job when things are going well and I truly enjoy it most of the time especially the interaction with my clients. The money can be good if you are good but most brokers struggle.
Dont give up your day job until you give it a go and you need some capital to give it a go.
Good post Marty.
A couple of other things to add.
Claw backs – something that most clients don't realise is that if the loan is closed down within 18 to 24 months from settlement the broker doesn't get paid. The lender simply claws back the commission. Needless to say, you should be doing the right thing via your client so that any refinancing or future borrowings is done through you – however, claw backs are a reality and they do happen.
Compliance – so much time, energy and money is spent on maintaining compliance these days. Whilst it's great that the market has become regulated and shonky operators will eventually be weeded out – the compliance aspect, at present, is quite onerous – particularly, if like me, you hold your own Australian Credit Licence.
Just my two cents.
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Catalyst wrote:Well lot's don't. There have been a lot of cases investigated.Like this one recently – https://www.propertyinvesting.com/forums/property-investing/help-needed/4337779
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Free to Bee
Welcome to the forum.
You could always go to another bank who is willing to lend more. CBA don't rank that high when it comes to the amount you can borrow – other lenders have much more generous borrowing capacity calculators.
A broker could run a quick borrowing capacity calculation on your scenario and offer advice.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Call me crazy but I actually don't mind painting – it's kind of relaxing.
The last renovation we done, we painted the entire house ourselves. After a long day in a fairly stressful industry it's nice to do something a little brain numbing (not to say that painters are stupid!)
For that reason, we buy our own and paint ourselves. We got a quote for a touch up job on an IP recently – I couldn't believe how much they were going to charge!
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Ash88 wrote:Ps: my long term goal is to own as many properties as possible and rent em out
Hi Ash
If that's the long term goal then you will have to borrow money at some point. Banks can be a pain – no doubt about it. But at the end of the day, if they weren't lending us money, we wouldn't be able to purchase properties.
You need to map out a plan – $250k is a lot of money, you really need to ensure that you spend it properly.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Chris89 wrote:Hi Jamie,
If you go for a higher LVR loan, say 95%, will you miss out on any type of features than an 80% LVR will give you? Such as, maybe having to have a higher interest rate, having to have a P & I etc?
Hi Chris
Not necessarily. You would likely get the same rate applicable to deals between 80% – 95% and you can opt for IO (though some lenders like Adelaide Bank only allow P&I).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I'm pretty sure Richar Taylor has mentioned one a few times – if you do a search you should hopefully be able to find the posts.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Macca
I just replied to your email before reading this thread – looks like I share the same train of thought as the two posters above.
In regards to the IP that's costing $10k p.a to hold. Is there anyway you can improve the yield? Any cosmetic renos that will enable your to up the rent? Perhaps allow pets – that can add a fair bit to the asking rent.
Are you claiming depreciation on that property? It's relatively new – so the depreciation should be pretty good. Looking at those numbers – it's hard to see how it could be CF- by $10k p.a.
I'm a firm believer in buy and hold – and you have enough equity in IP1 to help you purchase your next (but that's me – ultimately it's your decision).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
teds01 wrote:Also, what other options can people suggest to obtain a true valuation of their properties? Comparable sales I guess has to be one of the best ways, but how do you obtain this info on the web?Hi Teds
To get a true valuation you really need to fork out for a registered valuer to come and value the property.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi lifestylez
Are your properties in the Logan area? I noticed that prices for townhouses have dropped quite a bit since 2009.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
The last townhouse we purchased was 140m2 and it was quite comfortable. It's a 3 bedroom, 2 bath, DLUG two story terrace townhouse.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Ryallsy
I would (and I'm sure you have) think carefully about how the addition to the family is going to impact on your ability to make repayments on your liabilities.
Your contributing a significant portion to the household budget – so it's important to have some mitigators in place that will enable you to continue servicing your debts whilst you're out of the workforce for a period of time.
I know it's an obvious statement to make but it's something that people often don't consider.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
sapphire101 wrote:Contact SRO and tell them to blow it out their ass!Haha – I like your straight forward approach Ian.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
What are comparable properties in the area selling for or being listed at? Check out http://www.onthehouse.com.au to gain a snapshot of the area.
Check out HTW month in review for commentary on the area – http://www.htw.com.au/Month_in_Review/Month-In-Review-August-2011.pdf
As stated above though – what's the main motivation behind selling?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
thecrest wrote:Sounds like it would make a good "car bra" and look better than those typical black mat type car bras. If a complementary colour or signwriting was used on that car bra area, that would look good and minimise stone chips. Guess you only get stone chips in rural areas though, where we spend a lot of time. cheers thecrestNot too many dirt roads here
Although we could probably be classed as one large rural town.Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Terryw wrote:You can certainly turn the PPOR into an IP, the interest on the existing loan should be deductibleI think that's where his FA and accountant are divided. He doesn't have a loan on his current PPOR (soon to be IP) – so while he can turn it into an IP, there is no loan to deduct against.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Terryw wrote:Colin, probably no breach of Privacy Act as it relates in an investigation.I was thinking the same thing.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Although we could probably be classed as one large rural town.
