It’s all depend on what you want in life.

Some people like to live their own home where there is an emotional value in it.

Some people happy just to rent and buy an investment property.

At the lending and servicing calculation point of view, in general, renting gives more borrowing power than buying your own home to live in.

Bad credit not necessary kill the borrowing.

If it is long time ago, say 5+ years ago, then you still have good chance to get the lending from the major lender(s), providing you have been paying all the creditor(s) on time …etc.

Just like Jamie mentioned above, it’s all come down to what’s on your credit file.

What you can do is to negotiate with the buyer on all the terms&condition and price.

Once both of you agrees on thing(s) put down in writing, then use it as a draft to form a formal legal agreement by a solicitor.

Make sure your contract is done by a solicitor who has experience in vendor finance.

I think respect and understanding are the keys.

A basic understand all the professional regardless, agents, brokers, accountants, builders….. we all need to respect people’s time and effect.

Connect with right people, people with passion on what they offering.
Clearly time waster or people just want to cut other people’s deal is not really welcome anywhere.

I have respect with many brokers and other professional on the forum.

I would encourage people do an initial interview with professional, after that choose one or two, then focus the energy on something else, let the professional doing their job.

After all, investing is about team work to go for the same direction, not to waste time of blaming or changing a good team then forget the big picture ahead.

Hi Paul,

Sorry to say, I think you took the depreciation and capital works incorrectly.

Let’s put all the tax, depreciation and capital work aside.

Just look at the simply figures rental income, interest and loan amount for now
say interest rate is @ 5% for all 4 properties.

Given that you said from the first post.
P1) Rent 350 * 52 = 18,200 ; owe 240,000 * 5% = 12,000 ; So net is 18,200 – 12,000 = 6,200
P2) Rent 450 * 52 = 23,400 ; owe 304,000 * 5% = 15,200 ; So net is 23,400 – 15,200 = 8,200
P3) Rent 500 * 52 = 26,000 ; owe 190,000 * 5% = 9,500 ; So net is 26,000 – 9,500 = 16,500
P4) Rent 0 * 52 = 0 ; owe 350,000 * 5% = 17,500 ; So net is 0 – 17,500 = -17,500

3 properties
6,200 + 8,200 + 16,500 = 30,900

PPOR
-17,500

Hence, 30,900 – 17,500 = 13,400
Overall, your portfolio is still positive.

If take the maintenance fee, management fee, a few weeks of vacancy… I would expect your portfolio are still in a positive or at least neutral position.

If you take tax, depreciation, capital work into account, then your portfolio will be stayed in a positive cashflow position.

If you confused about the concept of tax, depreciation, capital work, I would suggest DON’T look at it at all.
Do your number on interest charge on loan from your bank statement, and the rental income from your rental statement.
All them up for all the properties for the past year, then you should be able to see for your cashflow.

I hope this help :)

Was fee charge disclosed up front ?

Ask your broker what is the fee charge for ?

How complex is your financial situation ?
All I know is if you are dealing with investment banking area of finance, you are expecting to pay consultation fee. ( I am talking about big time investors, high net worth investors)
however, this is not normal for retail or small investor.

Thank you for the above,

Just out of my curiosity, currently, I am working in the financial service industry (fund management) and with finance degree. Do you guys think I can get an exemption from doing the certificate or diploma course to get the MFAA or FBAA ?

Hi all,

I have been thinking becoming a broker for a long time, and finally this I enrolled myself Certificate 4.

Just wondering what is different between MFAA and FBAA ? ( all I know is MFAA needs diploma and FBAA just required Certificate 4) ?

What about the aggregator ? Does most of the aggregator require to brokers to have MFAA or FBAA ? or it does not really matter ?

Thanks in advance

• This reply was modified 9 years, 9 months ago by  TaylorChang.

It’s a very inspirational story !

Thank you for sharing :)

I see, thank you for the information.