Forum Replies Created
That’s a good read Richard, well done.
I found this, maybe it explains what i was trying to say
Cheers Oz
I work in IT hence why I’m wrong on the bank mortgage val issue. Just on that though if I have a deposit, am I not only borrowing the amount I need to make up the final difference. So as per my example if I did want to buy a house above what the bank is prepared to give me than can’t I just supply a bigger deposit?
I only found this forum the other day hence my first post, trying to answer the original question of has anyone dealt with RPM.
Can I ask how do you make money if you do those services for free?
The RPM fee I paid was several thousand and it was a once off fee. I paid it using some of my equity and claimed it as a tax deduction.
I’ve never met a broker who does more than just finance, the few I have dealt with over time have done nothing more that charge me for their serves and put me into a new loan.
RPM are not brokers and they guided me through everything, in fact they didn’t sell me a house and land package they introduced me to a property consultant who put together the package.
RPM explained everything, and pretty much managed the process so i could be as involved or as hands off as I like. Show me a broker who does more than just finance. RPM have many associates and relationships that I was able to leverage for advice.
As for Qlds007 comment about bank valuation. Market value and bank mortgage value are two very different things. Bank mortgage values are way under market value. Thats how they protect their interests.
For example if you buy a house for $350,000 the bank may only value it at $300,000 but will still lend you the required amount if you thrown in the deposit and your home as security.
What a house sells for and what a bank values it at are two very different things. Earlier comments in this forum suggested that some schemes sell home to investors at over inflated prices, I don’t think the bank mortgage value would align with these over inflated prices if that was the case.
Richard can I ask, if I came to you (I see you are a broker) do you have a panel of builders and developers I could talk to? do you have independent licensed financial advisors I could run things past? Relationships with accountants who specialise in investment related tax matters? Property managers who can manage my investment? or do you just search the hundreds of existing loan products on the market and get me a lower interest rate.
RPM helped me with all that and helped my wife and I to reduce our loan from over a 20 year term to less than a third.
God my answers are long winded. lol
My Tax advice was provided by my accountant and not RPM and no the program doesn’t work by capitalising interest.
It simply uses an effective bank product together with good cash-flow management. I chose property as my vehicle to make it all work and RPM assisted. They have a number of associates such as builders, financial advisors and brokers who they introduced me to.
Like many of the comments above I was sceptical at first but once I did my own research and asked lots questions I was comfortable. I noticed one such comment about them or similar companies selling the houses at over inflated prices.
In my experience it was the opposite, they introduced me to a property consultant who found me a house and land package that I purchased at near the bank mortgage value. (something I didn’t quite understand at first)
I also learnt that buying a new property vs and old one saved me on stamp duty and gave me better depreciation etc. This goes back to my first post and the point about not learning from my own costly mistakes.
I can understand peoples cautiousness but its like anything, do some research, ask lots of questions and only when you are satisfied make an informed decision.
As for your ATO question, my accountant said everything I was doing was within the ATO guidelines.
Cheers
It’s funny reading posts from mortgage brokers that are working on pure assumption. Not that there is any conflict of interest but I’m sure they will tell you they can do a better deal / offer on a home loan.
My wife and I have been an RPM client for some time and many of the posts above are inaccurate. RPM are not mortgage brokers, property developers etc.
They assist clients to reduce their mortgages and build an asset portfolio. I was doing this alone and went to them for advice, it was a less risk option for us as they have a number of experienced associates that they introduced us to.
Our finance is with a reputable bank, we built our investment with a known builder and all the legal and financial advice was independent of RPM. I was happy to pay for some expert advice to reduce the possibility of me making an expensive mistake going it alone.
SHales, I don’t understand your comment about them wanting money upfront. We didn’t pay a cent until we were satisfied that we wanted to proceed.
In the end I’m happy with my decision and have recommended many friends and family.
