Nit you wont get it for nothing he will need to purchase it from the REIQ or get a friendly agent to provide him with one.

Hi Isobel

To be honest this day and age most of my forum clients are not in Brisbane and are right through Australia and the World.

Mortgage Broking has come a long way over the last few years and with the majority of lending applications being lodged electroncially i find that client can be anywhere and we can still assist them.

Of course a lot of the credit goes to the technological age with email and internet.

Let us now if we can assist you further.

Blacklab

3 units is fine and no a separate body corporate is not required under a small scheme arrangement.

Happy to email you a Residex report on the property if that helps at all. Just need an address.

Yes all i am saying is the offset account is not fully transactional and with $100K coming into the account you want to maximise your savings and flexibility of the loan.

Some offset accounts are not 100% CBA just happens not to be transactional. Course they never tell you that at the Branch when you get the loan.

Hi Kyanne

Wow certainly nowhere near 10% nearer 2.5% basically the same as a vendor would pay an agent for selling the property.

Some Buyers Agents work on a flat fee other a sliding percentage.

Andrew

Yes if the buyer choices the property themselves they feel more of an ownership and more likely to stay and look after it rather than choicing from a selection of properties the Vendor has available for sale through an instalment contract.

Several of the instalment contracts have seen are certainly UCCC complaint and others contain conditions which certainly do not comply with the terms of the Property Act.

Hi Rita

Welcome to the forum and I hope you enjoy your time with us.

I couldnt agree more you need to find a Mortgage Broker who works with investors and understand their requirements rather than the typical cookie cutter broker who has no idea.

Secondly ask the Broker does he own investment properties himself.
Personally as an active investor I would expect my clients to ask me this as one of the first questions.

Thirdly you want to find someone who has been around a year or two.
Uptil until recently anyone could be let loose on the public and be out there arranging loans.
You could have been an electrician in the morning and a mortgage broker in the afternoon.

As someone with over 25 years experience in the finance industry i sometimes get amazed when clients tell me what their previous Broker /s have told them.

Being a financial planner as well i find that it is easier to understand a clients total position and make a recommendation given the knowledge of their entire financial requirements rather than deliver up a home loan on a plate and expect the client to take this.

With more stringent licensing requirements on the way the industry will inevitably loose a reasonable number of mortgage brokers but it my opinion in order to increase the integrity and knowledge of the industry this is a good thing. A quality Broker can be an essential part of an investors armory however a poor Broker can be worse than a noose around your neck.

Terry for once i have to disagree with you.

As you know i own First Home Owners Group Pty Ltd here in Qld and at present we have 81 properties on our books all wrapped through Instalment or License to Occupy Contracts. At out peak we had 184 properties but have wound the Company back and have helped purchasers refinance out to traditional style lenders.

In the main over the least 10 years we have mainly helped purchasers get into their home with nil or very little deposit.
In Qld the FHOG is not payable on the possession date so to a certain extent the risk lay with us in the early months until the FHOG was paid at which time the risk exposure was slightly reduced.

With the 3 Directors owning all of the properties monthly cash flow was and still is extremely healthy. I agree that for the average purchaser doing the 1 deal here and there it may cause more issues than are worthwhile but in the main find the cash flow assists in supporting and paying down debt on my buy and hold properties which i acquired purely for capital growth.

The Caveat registered against the property to protect the purchaser remains for the entire period of the agreement although we do take an executed Power of Attorney from the purchasers used solely in relation to matters concerning the property. In all the years we have only had to obtain a Court Order to remove the purchaser on one occassion and this was merely because her it informed lawyers told her that she could squat in the property and not have to make any repayments. Thanksfully the Court disagreed with them and possession was granted.

Unfortunately there are many sellers who are not so ethical and some of the Instalment Contracts i have seen are without doubt illegal if ever tested in Court. Like anything in the world communication is imperitive and we encourage our buyers to contact us if they are having problems in meeting the repayments.

One of the major differences is never purchase the property and then try and find a buyer but always let the buyer locate the property and then approach with a view to financing and onselling to them..

Like anything in this world there will always be the odd bad egg on both sides of the equasion however done ethically this form of financing fills a massive hole in the finance market which is unlikely in the forseable future to filled by the traditional style lender. Interestingly enough over the last couple of years the quality of purchase has improved ten fold and in most cases these buyers have a small deposit and clean credit.

I Ben

Yes assume the purchase price was $100,000 and your costs came to $5000 then you would obtain a loan for $80,000 and the vendor would lend you $25,000 by way of 3nd mortgage.

Course the problem comes if the Vendor has a bank loan of $80,000 or more. (even slightly less as he will have costs and possibly Taxes to pay)

Secondly lenders wont allow the deposit to be solely funded by a vendor loan so this will be your next problem and finally as you have mentioned serviceability.

Irrespective of the cash flow lenders will only take a proportion of the rent into consideration so your income will be important. Qualifying for the $80K seem unlikely as well.