Jeff

I am with Alistair on this one. The difference between the commission rates is so negligble it is not funny.

Recently a client approached me and had been offered a loan by his Personal Bank at the NAB which included a LOC. The Bank were going to offer him a 0.15% discount due to the loan amount.

I gave him a range of options and another lender whom he ended up going with would offer 0.7% off the total loan amount inclusive of the LOC.

I assure you they were not paying the highest commission rate.

Remember apples are apples and oranges oranges. When comparing products there is more to live than just the interest rate but also the terms, conditions, costs of the loan and the after sales service the lender will give your client.

If brokers went for the lender offering the highest commission rate then the non conforming lenders would get all of our business and that certainly does not happen.

Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]

Good to hear that you are going to take things slowly.

The Options market is like the roulette wheel and dominated by the big institutions. Great game for the knowledgeable but it is like holding a buring piece of paper eventually it burns to your fingers and you loose your capital if you are not smart enough to take preventative action.

You can never learn too much and the ASX website is excellent for beginners and intermediaries alike.

Most large broking houses also have good websites all of course pushing their own barrow:

Try free sites like
http://www.abnamro.com.au / http://www.aussiestocksforum.com.au
http://www.citiwarrants.com.au / http://www.sandford.com.au / http://www.wilsonhtm.com.au.

Organisation like Macquarie who are the largest issue of Warrants in Australia also have good websites and you can learn about the different type of warrants.

I think the message is you can also learn from the sideline at no cost to your pocket.

Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]

Hi there

First question first. Lodoc loans residential start at about 6.5% and go up from there and commercial around 7.1% dependant on the security and the LVR. No doc loans maybe slightly more expensive.

To accurately quote interest rates and terms and conditions additional information would be required.

Many lenders don’t do credit checks in fact when i first arrived in Oz in 1992 i spent a year (for my sins) as branch manager with one of the big 5 in Qld and we never did a CRAA check. That has changed but i am aware that several others don’t.

In saying that if you complete the application form correctly then it will make no difference to you as you will declaring all of your loans on the application.

Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]

Derek is right although admitedly i am slightly biased.

Your Bank will tell you what they have to offer only. They can’t tell you whether they are competitive of whether the structure is correct.

A independant broker has a whole range of lenders and products to appraise and can usually not only save you money but ensure that you loan is established in such a way to help develop your property investments.

Try any of the online brokers here and see what they can offer you.

Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]

It is difficult & illegal for anyone who is not Licensed to offer you financial advice on the forum. Without knowing your exact position and a full fact find i won’t try here.

However all i would say is that every person’s goals and asperations are different and everyone has a different expectiation as to what sort of return they want to receive.

$50,000 is a not a great deal of money if you are consider buying options in shares on the ASX 100. Unless you are experienced in this area i would leave the market alone.

I have too many clients who thought they could make their fortune alone trading Puts and Calls and have come a cropper.

If you buy the share alone and look to write Call Options against the stock you will not get much for your money. $50,000 equates to around 2100 BHP shares or 1100 Commonwealth Bank Shares. As both currently trade at a 1:1000 Option ratio you are certainly not going to get rich quick.

Writing Call Options also have a considerable downside especially in a Bull market. Other strategies such a strangles / spreads maybe more appropriate.

If you are confortable in gearing why not look at the array of Installment Warrants around again depending on your time frame. You could always write Call Options against the Warrants.

Whilst the market maybe more liquid than investing directly in property it is easy to loose your hat, coat and everything else you own. Trust me I was on the floor in 87 and saw it happen with my own eyes.

Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]

Andrew

Welcome aboard the forum.

You and many other long standing members of the forum are doing likewise. The forum is not a platform to advertise your services but assist others

Advertising is not permitted and no i am not a moderator.

Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]

Hi Sinaloa

Yes i actually run my own finance briokerage so have been involved in both financing such developments as well having undertaken a couple of projects myself.

To me it sounds like you are very early in the peace and will certainly need to enagage the services of a consultance firm. If the project was in or around Brisbane I could certainly give you details of a couple fo firms we have used in the past but with the amount of work in the SE corner most of them are flat and arent looking much further afield.

You then will need to decide how much involement you want to have in the development. Do you want to organise the Consulting Engineers day to maintainance of the contractors or leave that in the hands of a developer or project manager who will want a cut on the project as well as salary.

Dependant on the number traditional and investor style financing options maybe possible.

If you want to contact me off the forum with actual numbers then feel free do so.

Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]

Henry

What they are telling you is rubbish. You are able to offer vendor terms on anything. In saying that you would want to be sure the buyer was a good risk and you were happy with the credit assessment you did on him.

Altenatively there is nothing to stop you arranging to introduce your buyer to a broker who specialises in personal loans and let someone else take the risk. That way you will receive full funds up front rather than having to take them over period of years.

Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]

Cabo

When you say “He’s got a piece of land on Vic, that he bought years ago” which year are we talking about.

Is a pre 87 candidate?

Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]

Michael

You must be kidding me “wrapping is certainly alive and well” if enquiry levels are anything to go by.

in fact most of those heavily involved in wrapping are to busy wrapping that we havent got time to post comments on it.

Just bear in mind whilst the concept is the same in every State and the UCCC legisilation Australia wide each State has its own percularilites when it comes to the purchasers FHOG entitlements etc etc.

In saying that if you need information please ask away.

Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]