Forum Replies Created
Hey Guys
Thank you so much for your responses.
I am in WA and the broker is in another state, but i also found out today that when a broker is dealing with a consumer in another state, then the state laws of the consumer apply. Therefore WA law is applicable in this case.
The application form to draw my equity was on the same application as my refinance. Thats why I didnt pick it up.
I agree and I am cross at my bank for refinancing the same loan, for EXACTLY the same amount for EXACTLY the same properties. And then charging me $10k.. what a joke.
I made loads of phone calls today…. to the FBA who told me I had no legs to stand on and told me im an idiot for not reading all the documents. I told him that the $10,000 was not put on anything or anywhere, so how was I meant to read something that was never there.
FBA told me that its my problem and the broker had no duty to disclose anything, esp because I am a property investor. He was WRONG!
I got in touch with the Mortgage Brokers Association and the lawyer there used to be the regulator for the UCCC. He told me that ALL mortgage brokers are monitored by the UCCC. That it is a national code that all brokers must comply with in all states.
Obviously the code is only applicable to consumers. Even though I am a property investor I still fit into the consumer category because I do not have a net worth of $2Million nor do I earn $250,000 per year, if I did I would not fit the consumer definition.
According to the UCCC Mortgage Brokers must present all consumers with comparative tables and set out a schedule of all fees and charges, clearly and unambigously.
I have gone all through every piece of documentation and contract and it is outlined NOWHERE not even at settlement that $10,000 was being taken out of my equity loan. They simply dumped the funds into my account minus $10,000.
The bank and the mortgage manager are stunned, and have confirmed it is not in accordance and that refinancing was completely unnecessary. My broker still has no answers for me but to “not worry about it”.
I have sent his complaints manager a 5 page letter including all emails to confirm that he told me “Not to worry about it” and sections of the law applicable…… with a letter of demand requesting they reverse out the transation which is not that difficult considering the loan has been refinanced with the SAME bank for the SAME AMOUNT.
This broker has cost me the following unnecessary fees, that I shouldnt worry about
1. Mortgage Stampe Duty
2. $10,000 worth of break costs
3. Fixed loan for 3 years. I was planning on selling the properties early next year and will have to pay further break costs
4. 0.75% increase in interest rate on $800,000Now tell me guys, would you not worry?
Sorry just wanted to say that this broker does not contribute to the forum or post messages.
Sorry just dont want to make the other brokers look bad
Thanks Simon, I think have been going the wrong way about buying!
Mentee
Forget about listening to the REA and do your “Due Diligence” . You should be the one to work out what YOU want to pay and what the property is worth, and weather you are getting good deal.
Dont enter into bargaining wars, you will only end up paying too much.
Work out your walk away price and stick with it. There is always another property!
Hi Redwing
Im not sure, I wasnt aware that borrowing was limited on a smaller property???
I have a fairly large deposit that should cover me!
Yes, was hoping some east siders would respond??? are any of you out there [strum] help me lol
What state do you live in Redwing? Are you going to the aspire weekend???
Hi
Thanks for your response!
Sydney is cheap in comparison to other capital cities.They are 45sqm studios in the World Tower…?????
approx $400 rent..
hahahaha god all this property stuff is getting to all your heads.
I suggest you all drink some warm milk and go nightie night.
Hi There
Wondering a few things
1. How big is the block of land?
2. If there are already four existing buildings, why are you subidiving? isnt it aready sub divided? Sorry it doesnt sound clear what you are wanting to do.
THanks
How does one find a sea view property, half an hour from a major city that is subdividable for $200k??????????
I must be seriously missing something!!
Hi There
The old age question! Its very simple.
I dont believe earning more or asking for a payrise is going to solve your problem. If you are not good at handling 10k you wont be any better at handling 100k. Its a known fact that as peoples income goes up so do their expenses.
I used to have 4 credit cards, live week by week and had one IP. 12 months later, we have 3 months worth of funds and 5IP.
And now as either of our pays go up, we bank that extra money so we dont spend more but rather, use the money to invest more. We are happy to keep our lifestyles the same for a long time so eventaully achieve financial freedom.
There is no secret answer or short cut ………..you have to live within your means, cut up those cards, if you need credit to buy something you shouldnt buy it.
Make sure you write down eveything you spend your money on (I did that) and it spun my head, the amount of waste.
You will feel so much better as you see those bills going down that bank account going up and eventually, it will become natural to you like it did me.
I hope it all goes well!
Wow, well done! wish I had caught onto PI years back, at your age.
I think Tizzy is right. Take her to seminars and ask her if she will read a few books… give her Rich Dad Poor Dad to read first (lol here I go again).
Feed her with positive information! and make her feel comfortable in knowing at the same time that you are doing this to try and set the both of your lives up together!
But gently [evo]
Hi
Confused by your question!
Do you already have you own home (that you live In) or an investment property?
Do you own any property???
If so and it has gown up, then you can use this as equity for your 2nd property??????????
The books that really changed me were “Rich Dad Poor Dad” and then you will want to read the rest he has written. God, anyone would think i was earning profit from his book sales lol
Craig Turnball is a great OZ based mentor
He has club nights all over the country and some great mentoring programs.
Hi
Can the person who runs the Perth based club please contact me.
I would like to join.
Ok i’ll listen :> thats one person. How many more do you need to listen before you explain?[biggrin]
Hi There
Which state do you live in????
You need to start reading lots of books and attending seminars.. surf the net for some good sites that give you statistic information.
Start learning about the economy and how changes to consumer spending/debt, mining, population ect can affect investments. And be aware that things move in cycles.
Go to home opens and see whats going on in the market.
My favourite author which I go on and on about is Robert Kiyosaki
Also, this site is fantastic, I have only just found it myself.
Dont jump out there, build your knowledge, it takes lots of time.
Good luck
Thanks for your help guys!
Oh no! I have seen the CGT Guide from the ATO.
It looks scary, ok, ok…….i’ll stop being lazy and start reading!
Hi There
Ive not added a bathroom before.
WIth my research in WA on average houses in average areas, the value seems to be around $10k more for a 2 bathroom as aposed to a 1 bathroom property. I guess it depends how much this is going to cost.
These days we ALL prefer at least 2 bathrooms but it all comes down to sums and if its going to increase your profit. Do your calculations!
Sorry, im not much help!
Hi there tkting
Thats a smart move and ive been thinking the same.
I purchased a number of IP in the past 12 months and i regret some things I did because I should have consulted an Accountant first esp for setting up Trusts ect.
It is one of the most important factors with investing to have a wizard accountant. Taxes are one of our biggest expenses, thats for sure.
I am new to this forum and its the best one ive used. Everyone is helpful and excited by discussions… I think im getting addicted :>
I really have to learn more about Taxes thats for sure.
Is there anyway you can limit Capital Gains taxes.
For eg. my large corner block.
If I subdivide and sell the back part as empty land and then use that money to put on the remaining mortgage for the existing property which I still own….. will this limit the amount?
Hope im making sense.
