Form a JV partnership with a cash/equity partner. That is providing they can bring serviceability or some other expertise to the table. There’s a lot of qualifiers to get it over the line with banks though and a lot don’t like it when there’s unrelated parties borrowing. Tricky but not impossible (usually!). Some will do it as resi lending…[Read more]

Did you have a finance clause in your contract?

Why is your loan not getting approved?

Central west of where?

Regionals are usually good for cash flow and capital growth is usually the sacrifice. There are some exceptions to that rule but not many.

I started out my IP journey with 2 regional cheapies that served me well as a stepping stone. Purchased, did a basic cosmetic reno on both and rented out both for 8% and 10.5% return…[Read more]

Taking a step back, why do you want to be a broker, Charlie?

You’re on the right path wanting to maximise your tax deductions should it become and IP down the track.

It does depend on your risk profile whether you would be more comfortable with a 10% or 20% deposit. If your deposit is <20% then you will need to add LMI into that equation too.

Another thing to consider too is principal and interest vs…[Read more]

I don’t think the model is broken or there to screw anyone over. It’s an easy industry to get in to considering the potential consequences should something be done incorrectly. Brokers are, in a way, dealing with people’s livelihoods. A mortgage is usually the biggest financial commitment for someone. If a loan is set up incorrectly or wrong…[Read more]

When I first started out I went with a mentor who in hindsight wasn’t right for me for several reasons. I then found a good mentor and it made the world of difference. This is my business and my livelihood so I didn’t and don’t want to make any compromises. I am in this for the long run and not to make a quick buck (not implying this isn’t you)…[Read more]

I personally think you’re putting the cart in front of the horse. To me a good mentor is more important than aggregator and I’m not too sure how I would feel having my aggregator select my mentor for me. This is someone you will have to work closely with for 2 years so need to make sure that not only will you have a good working relationship but…[Read more]

Charlie, read the agreements closely. Particularly about ownership of clients and if you terminate the agreement who keeps the clients and/or the trails.

Out of interest, what’s made you narrow it down to the ones you’ve listed?

The good buyer’s agents I know charge a fixed fee for their services.

Looks like you’ve done some good research there Troy but how does the properties that you have narrowed down fit within your big picture? Some things to consider is why are you wanting to invest in property? What are you hoping to achieve our of it and what kind of purchases do you need to make to enable you to reach your goals.

In answer to your…[Read more]

Very broad question there Mick. What are you hoping to achieve out of investing? What are your short, medium and long term goals? Why Yeppoon and how does it fit in with your plan?

What may work for one person may not for the other.

Charlie, there is a lot more to being a mentor than just checking loans. It’s offering all sorts of guidance too that is involved with running a successful mortgage broking business. It may take them an hr to check through your loan but what about all the coaching up until that point – making sure you pick the right loan for the client, especially…[Read more]

Yes, some are assessed on a case by case basis. Particularly when loan is outside of normal guidelines.

If the borrower cannot service the loan it will not be approved – NCCP / responsible lending and all that jazz for resi lending.

Commercial is different where it doesn’t fall under NCCP but why would a bank lend money when the probability of…[Read more]

Apologies Mikko, missed it earlier in the thread where you stated that.

You can go for a loan with less than a 20% deposit – it just means you will be up for Lenders Mortgage Insurance. For an IP this isn’t always a bad thing as LMI enables some people to get into the market sooner and also maximises tax deductions. Keep in mind you will also need additional funds for stamp duty, legals and other settlement costs.

Pepper is a niche lender – is there a reason you went with them to begin with?

I don’t know the ins and outs of NZ mortgages so not sure fixed rate works the same way it does here is Aus but for the purpose of my response I’ll assume it does.

A lot can happen in 10 years both personally and economically. The break fees for a 10 year loan could be horrendous. I’d feel uncomfortable locking something in for 5 years, but that…[Read more]

What are the demographics of the area?

Best bet would be to call a few of the local property managers and have a chat to them on what their prospective tenants are looking for.

Some instances there is demand for 1 bedders such as close or in CBD for cheap (student?) accom but I know if I was renting as a single person or even couple I would…[Read more]

A drop in income can hurt your borrowing power.

When you’re self employed most banks usually go off your last 2 tax returns and take close to the lowest figure of the 2 so if you have had a bad year or two it can take a little while to have things looking better to the banks again.

There are a couple of banks who are happy with the latest tax…[Read more]