Forum Replies Created
Hi SNM
Yes you are so right.
Funnily enough the Fin Planner concerned used to crow to me that he could make upto 30% commission on the original investment and couldn't understand why i wasn't putting my cllent's into such products.
Tom, another reason why you don't want to cross collateralise your loans when buying property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sounds like you need an electronic cash book.
Have you had a look at Cashmanger ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Carole
Any update on the Settlement?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Yoly
Not quite as simple as all that as most lenders wont accept a Term Deposit as collateral security so you will need to ensure your lender will do so and then fully understands what you want to do.
But yes in simple terms use the TD as additional security and borrow the full 100%% of the property purchase price to maximise your deductions whilst you are not living in it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Alex
I must admit i totally agree with you about the strategy going forward and something i have been saying for years as the only way for international investors to get involved with the US market given the difficulties with property management.
I have been involved in Vendor Finance here in Australia for 15 years and built my property portfolio on the back of such income producing strategies.
With your model can you tell me who would find and assess the potential new purchaser ?
Be interested to hear from you in this regards.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I agree with Michael when you get a email from a Forum member and it is address ' Hi (blank and no name inserted)' you know it has gone to every Broker on the planet i usually either ignore them or write back suggesting they provide more information.
In regards to competence or qualification i have made the same comment several times in the 11 years i have been involved with the forum and that is when choosing a Broker you want someone who has been or done where you want to go.
There is no point in going to a Broker who is still eagerly paying off his PPOR and who has never purchased or owns any IP's with say 5 years in the industry and asking them about building an investment portfolio. Yes they might have the theory but lack the practical application.
Again as i have repeated on some many occasions would you go to a brain surgeon to have a tumour removed to be told well i have read the books but never done this operation, you are my first but i will give it a go. I for one would be seeking a second opinion.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
My wife tells me my present is so big she can't get it in the garage.
I guess it was a new Aston Martin but she said more like a whole new range of gardening tools.
Whatever i get as long as it is with family and friends i would never complain.
Looking forward to 2013 as i see it being a really good year on the business front.
Wishing everyone else a safe and merry christmas.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Joe we normally get paid at the end of the following month to which the loan settles.
Commission comes with a 18 month clawback period with most lenders so if the loan is repaid or refinanced we end up losing everything from 0-100% of the initial amount.
Trial commission is paid depending on the lender either from the month after settlement or in more and more cases 1 year after settlement i.e deal settles Jan 2013 we get paid trail commission Feb 2014.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Have a few clients who were convinced to take out a line of credit and then invest by their Financial Adviser in Timber plantations, mango's or similar such wonderful loss making investments.
Course they have now lost everything and still able to claim the interest on the loan until it is repaid.
Thankfully we were not their FA at the time as steered well clear of such investments.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Reading your post sounds like you have already posted this on Somersoft so assume you will get answers on that site also.
Yes many of us have successfully done the odd back garden subdivision however i for one personally like to retain my property and rent out both to increase the cash flow
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Dan
No flipping is a regular used strategy by developers especially if they have a few deals on their plate.
Course still can be a dangerous method of buying especially if you can't actually settle.
Remember if you are flipping you are still going to incur Stamp Duty etc so we would probably look at a Put & Call option strategy as S/D is exempt in many States.
Of course either way you are still going to incur some costs including deposit, legals etc.
Either methods still relies on the Vendor accepting the terms of your contract / option.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Refund Home loan has now been purchased by Homeloans Ltd although here in SE Qld many franchises decided not to sell their meagre trail book.
As has been mentioned lack of professionalism and experience of any of the owners was often an issue.
Wayne was not even a Director of the Company (resigned as a Director 18 months ago or so) so got away scott free.
Channel 7 was a large unsecured creditor with much owed in unpaid advertising costs.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Yannjgs
Sure happy to send you a copy if you wish to drop me a line with your email.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Coming in late in the conversation NCCP ensures a Broker has all of the information to hand before proving a recomendation.
In saying this I would get a more than a couple of phone enquiries / emails a day and find that many clients merely want an indication of what they can borrow before they commit to an full Needs Analysis.
There is nothing worse than starting the process getting the loan approved, documents out and then 2 days before settlement the clients own lender who originally declined the deal suddenly says 'oh we will do after all and to win the business agree to better the rate by 10 bps'.
I personally don't charge a fee but i think what Terry mentioned does make sense.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Heh Jamie lucky you.
Mine are all mine and paid for.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Terry i don't think so.
To me it is very likely it could be one of the Big 4 as it just seems like they have no idea as to what is needed here.
Let's face it the Loan officer is probably more concerned with getting her Xmas shopping done than finding a solution.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yoly as i mentioned to another forumite in a separate post why wouldn't you borrow 100% of the purchase price and place sufficient funds in a Term Deposit to act as collateral security.
This way you get to maximise your interest deductions yet keep you funds fairly fluid.
If you eventually decide you want to pay down the loan (for some reason) you would have the Term Deposit released and recuce the principal balance.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say whilst both lenders have such a facility the limit adjustments are not automatic and have to manually amended.
The NAB Retail choice package has a similar product however again any limit adjustments have to applied for.
As Terry mentioned why do you need such a product ?
If you give us a wee more information we might be able to give you a ore detailed answer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Always have too ask yourself why do these organisation only ever promote new property solely.
They will spin you some yarn about maximising your deductions in regards to Depreciation etc however this is pure rubbish and as Nigel mentioned it all boils down to maximising their commissions.
Strongly suggest you register for Nigel's Property Know How Club and benefit from some real educated knowledge.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes always a question of age or beauty.
My wife tells me that some people hundreds to get grey tinges in their hair and miine comes atirally.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
