Hi Julito

PIS office in Melbourne is

Hi cici

There is no drama in your cousin claiming the first home owners grant when purchasing a Company Title however the issue maybe the loan amount any lender will advance against such Title.

Normally most lenders cap the loan to valuation at around 75-80% so they will need to fund the balance of deposit.

Greg

Hate to say hear stories like yours all day long.

Try someone like Intellitrain. www.intellitrain.com.au

Also why not give your local Aussie Home Loans a call as they provide an excellent grounding for someone starting out in the industry.

Never worked or been involved with Aussie (although i did have a coffee with JS a month before he started the operation in parra) but now a few brokers who work for them.

Sorry Michael i have to disagree with you and so do 5 of this Countrys top Bank lenders in your definition.

What is an offset account?
A. An offset account is a separate savings account where the balance is offset daily against the loan amount. For example, if you have $5000 in your offset account, 'notional' interest is earnt on these funds, at the same interest rate as your linked loan. This 'notional' interest is offset against the interest payable on the loan.

I totally agree that he should get some proper financial advice althougbh as you are aware it is illegal for a mortgage broker unless he or she is a licensed financial planner to comment on offset accounts or similar financial models.

Not all Financial Planners charge high fees for their services and promote only managed funds. I for one direct the majority of my clients in the area of direct property investment as that is the way I acquired my wealth and enjoy sharing the knowledge and experience with other forum member.

Hate to say Marwoto the offset account is not a true offset facility.

They originate their funds from Firstmac here in Brisbane and the products are mirror imaged.

Just be very careful if you decide to rent the property as any interest on funds taken from the offset account will not be deductible.

Guess like anything with these mortgage originators they sell the rate alone as if the product was that good everyone would use them and we would have no use for any other lender.

Pleasure.

Of course if the Trustee is a Pty Ltd Company then it would read XYZ Pty Ltd ATF XYZ Family Trust.

My question exactly Terry.

My feelings are it is not a true offset account but an redraw offset.

Be interest to know who the lender is.

Must admit i always get concerned on any website when i read " We are funded through our many referral alliances with builders and developers throughout Australia".

In short we get paid a commission to point you in the direction of a property. [moderator edit: tone]

No one begrudges any organisation from earning a commission or profit however a lot of these property marketing organisations have a bad reputation when it comes to selling overpriced properties.

As a Broker it is something we see a lot of and try and point our clients in the direction of an independant buyers agent acting on your behalf rather than the developers behalf.

There are a couple of good ones who contribute on the forum here so why not get a 2nd opinion on what they have to offer.

I totally agree with Michael that lenders realise to cover their interest spread (Because they tell you there is no money to be made in lending it out at standard rate for such a short period of time) they will try and recoup profit by charging an early repayment fee or similar.

I work with many clients that buy and sell and there are still the odd lender that doesnt charge such an fee or where they do it is reduced toan acceptable level to make the deal viable.
Obviously as far as your mortgage broker is concerned anything he / she earnes in the way of a commission is clawed back normally in the first 18 months so for these clients we do it on a fee basis so that their is a win win for both parties.

The other consideration would be the entity you use to purchase the property in especially if you expect to be making a capital gain or trading profit. Structured planning in the early stages will make the end result more palatable.

Yes – normally would read John & Mary Smith ATF Smith Family Trust.