Forum Replies Created
Hi & welcom [
]I attended Peter Flannagan’s course at Coolum in July – it was three very long days (approx 14hours each) and only cost $5000 for a couple. The real value for me was an introduction to a wide range of strategies and possibilities and a good hard go-get-em push into investing, plus a couple of superb guest speakers Dymphna Boholt and Billy Zheng. As for Peter’s info, unfortunately while he smiles a lot and keeps you entertained and motivated, he doesn’t explain overly much and if you’ve signed up expecting more grit than you’ve had from reading all those books you will invariably be disappointed as several more active property investing participants have already commented on this forum. The best thing for me was really the people I’ve met and the things I am doing with those other investors now that is making the world of property so exciting – this forum included, it’s great for a wide range of views and knowledge.
Re Dr Dolf De Roos – I’m also contemplating his seminar and study guide material as overall he appears to be more highly regarded and more informative. On balance, I’d say he sounds like the course to attend.
Cheers,
Mel
[email protected]Shhh – be berry berry quiet, we’re hunting wabbits … or should that be sandflies ?!? Doh.
Yes the banks are reluctant to lend more than 80% and no Enjo Lady I am not MAP Mel, I am Home Loan Connexion Mel on my way to Macleay – just kidding – honest!!
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Mel
[email protected]Howdy !
Re a) keep looking
Re b) there are several low doc products for people with and without ABN no’s for around 6.8% reducing to the current basic variable of around 6% over 3 years, with or without bells and whistles.
I think it pays to see a broker to get an overview of your options – there are several on the forum including me in Brisbane so you’ll have no probs getting good advice.
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Mel
[email protected]Hi Dallas,
The lenders themselves put an interest rate safety margin on assessing the borrowers ability to repay before agree to lend them the money. The odd thing is that this margin is anywhere from 0.75% to 2.5% above the loan product’s actual interest rate. [}
]So in response to your query for investors, I’d always shy on the conservative side if cash flow +ve is imperitive (ie have minimal other spare income) and add about 2% to the rate you are getting. I wouldn’t necessarily run out to put your loan on a fixed interest rate, but that’s really personal choice and food for much debate on this forum. [
]Cheers,
Mel
[email protected]Remy have you tried to get your husband along to a property investing seminar, eg Steve’s – they can be very inspirational, if only for the other people that you bump into and share stories with – building knowledge AND a network at the same time.
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MelHi Phoebe – welcome to the forum [
]As a broker my primary focus is not getting clients in over their heads, particularly if they are new to property investing. If your job is on the line and you are not certain if/when/how you’ll replace the income to maintain your standard of living and keep paying your current debts, then I’d be hesitant to recommend taking on any more loans at the moment unless they are really strong deals that put more back into your pocket than they take out. There are other options like renting out your PPOR and renting yourself. Are you the sole borrower for yor current property?
There are people like Insider and Junior who quite rightly haven’t let lack of income hold them down, so of course it can be done, just need to do lots of learning and searching first.
Good luck!! Determination is half the battle won.
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Mel
[email protected]There are quite a few – Russell, Lamb, Macleay and of course Stradbroke that are all populated but with varying degrees of housing quality, water & services supply etc. Keen to check those areas out myself actually for investing opportunities so don’t tell too many people ….
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MelAussierogue – you’ve hit 200 posts, well done [^][^]
Fatboy, keep looking. There are definitely good options for that money available, maybe try Gladstone, Hervey Bay, Maryborough too.
Good to see you are planning to join all us good guys north of the border!!
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MelHi Adriane,
I am a broker in Brisbane and have been hunting hard for a lender or two who is keen to do these type of lends, they are a bit left field [}
]. Good news is that I think I have a few options now for fully disclosed wrap lending (which is the only type I’ll do also [^]). If you’d like to contact me I’m on [email protected] or 0438 548 235.[
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MelMaybe it will help to ‘burst the bubble’ as investors smarten up and only purchase when the price is commiserate with return – although clearly that has not been the case in the last 4 years so who really knows …. [
]Mel
Agree – think it would help, there seems to be a lot of people who’d like advice both group and offline.
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MelMichael – did you get chopped off mid sentence? [
]Mel
St George still want to see 3% of genuine savings, which is about what you need to cover other costs eg stamp duty, legals etc I thought??
There are a few 97% products as well – Bank West, St George, ING etc and they have a slightly better rate.
I’d be happy to look over your finances if you’d like Battz.
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Mel
[email protected]
0438 548 235Hi Youngun,
There isn’t really a market for ‘brokering’ personal loans as they are largely a loss making exercise for the banks, and brokers for that matter. I have heard of a few good loans though – including Heritage who won the Personal Loan Product 2002 award. Having said that, some other lenders will include personal loans towards qualifying people for professional rates (ie interest rate discounts) if they have their personal and residential loans with the same institution and exceed a certain amount, so before this person rushes in to get a personal loan, if they also want to look at home loans in the near future it can be advantageous to sacrifice a bit of interest rate on a small personal loan for a big benefit on a larger home loan.
Make sense? Sorry, in a rush to see a new client …. must leave forum … it really is addictive!! [
]I can be reached at [email protected] or on 0438 548 235 if they’d like.
Cheers,
MelAgree!!
From a mortgage lending perspective, towns with populations greater than 10,000 within 10km zone are easier to lend for, but if you have any queries about other postcodes just stick them up on the forum and one of the broker folk would be happy to help.
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MelHi Kristine,
I can only really help from the finance point of view – if you are needing to borrow to invest it is quite hard to get loans in some postcodes, if you tell me the postcodes of the areas you are looking at I can let you know whether they are on the list that the two main lender mortgage insurers will look at or not. [^]
Regarding whether it’s a good idea, lots of people seem to be having success with it and yes if Centrelink are paying for the rent eg for a single mum with young children, you can ensure that you get paid first by centrelink making the risk pretty low.
Hope that helps.
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]Hi Mike,
This sounds a bit interesting. Can you please give a little more info about your homestart loan – amount owing vs estimated worth of property, approx interest rate you are paying, etc?
If you don’t want to talk online, drop me a note on email below, but online is probably better so all the other folk can chip in!
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Mel
[email protected]
0438 548 235Howdy,
I think it depends on the positive/negative gearing nature of the investments. Generally between the two major insurers PMI & GE you should be able to borrow up to about $1.5M as a low doc, higher on full documentation, providing your securities are sound. Lenders do prefer metro to regional, makes sense really as no. of potential buyers is always higher in metro areas, plus there are lenders who’ll take up to 100% of rental income into serviceability considerations in some circumstances. [
]As a strategy – if all you do is borrow 90% initially then pay down extra or renovate for example, with equity growth you’ll be able to revalue and end up under 80% in a lot of cases too. [^] Revaluation costs of $150-$250 are a small price to pay for eliminating the odd LMI payment of $1,500+. If your aim long term is to permanently remain at 90% across the board, that seems to be a bit harder for the lenders to cope with over the $1M+ lend mark.
If you need any help, like the other brokers I’d be pleased to oblige. [
] Whatever you do, don’t let lack of finances stop you in your tracks![
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Mel
[email protected]
0438 548 235
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