I write for Australian Property Investor magazine. Often the hardest thing to do is come up with good topics/ideas.
So what would you like to read about? What is something that puzzles you (besides George Bush being in power)? What do you think would make a good article? I have already covered the following topics (so they cannot be repeated):
– borrowing capacity
– commercial finance
– loan structuring
– professional packages
– borrowing more than 80%
– product selectionThe next one might be about the loan approval process/stages but I’m not sure if that’s interesting enough.
I would love some feedback.
Cheers
Stu
Hi Stu,
My (least) favourite topic re property investing is Capital Gains Tax (brrrrrr [earmuffs][fear]just makes me shudder thinking about it!!!!!!).
I have been hit with a hefty CGT bill (77K to be exact) and although it is not pleasant, I understand the reasons for (and against) it. I believe that many investors, really don’t have a proper handle on how it works, and as such will often ask “how can I avoid (or deferr) paying CGT?” Either way, there is info available through the ATO website, but it is soooooo involved, it’s enough to make anyone disconnect immediately!!!![blink]
I think an article with some “basics” on CGT, just enough to inform those that with little or no knowledge of its fundamentals would be very constructive, and draw in readers.
Good luck, and happy writing!!![computer]
Jo
Hi Stuart,
I have read a few of your articles, and they were great!!I even contacted you on two separate occasions to get some further clarification on them. Both times you contacted me back straight away, much appreciated. Thanks again.
So I feel compelled to come up with some ideas. How about,
– I personally would love to know how to calculate the effect that a potential investment has on my borrowing power. This would allow me to more accurately understand the effect of various investment ideas or opportunities.
It’s easy to say “if I do this investment then I will increase or decrease my cash flow by this amount” But what is my borrowing position at that point. How do I work that out? I suppose its sort of like borrowing capacity really, which you have done. Maybe there is something in there.
– What about, refinancing after renovation/improvements. Areas such as,
Should you employ a valuer from the panel of the banks valuers. What is the relationship between valuers and banks? What goes on under the covers?This one might be the best at of them all.
– How do banks react in a cooling market? What can happen? Areas such as,
– Is it possible for a lender to perform something like a “margin call” if the security (property) falls in price radically? (I actually had a discussion about this with a broker on a forum he said it does, and can, not happen, I maintain that it can). Can it? That is very relevant to investors in this market. If a margin call can happen, and supposing it did happen, then what are the investor’s options?
– Do banks change strategies in a cooling market? Like try to hold on to customers as apposed to seeking more customers? If so does this mean the banks are more flexible? If so how?I really like the idea about the approval and process stages as well. That sounds interesting.
Hope that is of some help,
Regards,
MarkyMark
Hi Stuart,
I must admit I have only skimmed your articles (you can throw rocks at me if you wish) as I have a good broker who does the hard work for me.
Have you considered;
– a ‘puppies’ article?
– a living off growth article?
– disentangling cross collateralised loans?
– banks capacity to foreclose on properties if you are in default with multi properties and multiple lenders?
– issues associated with the recent CBA parents heldping kids loan product?
– lo doc/no doc indepth analysis?
– offset/line of credit advantages & issues?
– improving serviceability measures?
– someone asked about a cocktail loan (high rate for IP and low rate for PPOR) – is this reality/legal etc?PS Jo I believe Stuart is only qualified as a finance broker and as such is unqualified to write on CGT issues & wouldn’t be allowed to comment on tax matters per se.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Derek,
What is a ‘puppies’ artical?Hi Mark,
People Unable to Purchase Property by themselves.
That is people who may have an asset but no income or vice versa. I suggested such an artcle as more and more people (especially in the current market) may find it difficult to get started and will need to join forces with someone else to qualify for loans etc.
Tenants in common issues will arise and this has been covered in an earlier API article. But from memory the financial side of things not quite so much.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi ,what about an article on deffered payment
what the banks do…
and is it possable for a buyer and seller doing the same..
also I would be very interested on the Islamic Home loans, I see there is an article in the MIAA mag about this but they didn’t go into the details as good as I would have liked.
[buz2]Hi Stu,
Someone mentioned in here an article on Bank Foreclosures… Alot of my clients frown and stir when we talk about this… they seem to think the banks are big and scary and as soon as you default your house is sold (well, some lenders may do this).
I think an article revealing what courses of action the lenders actually do take before they foreclose on your deal. I know for a fact it is their ultimate last course of action, and they definately do not enjoy it.
If you put in some stories about foreclosures that went ahead and some that didn’t. Maybe also how they deal with bridging finance where the original house doesn’t sell… Construction loans (lots of problems there in completetion dates)
I’ve talked to alot of Relationship Managers about this, it’s an interesting topic… maybe call it “The Truth about Foreclosures”
I would definately read it!
Liz Wilson
Mortgage Lender
Sorry Stu,
didn’t realise you were a financial advisor (as Derek informs me)….derrr; the topics should have spelt it out to me, but I guess I just glossed over them!!! [blush2][blush2]
In that case….I would love to know more about the value of fixed vs variable rates and/or a mixture of both; which do you recommend and why.
Cheers,
Jo
Hi Stu, What about cross collateralization in regards to starting with the ‘end in mind’ as opposed to how most PI’s in the last/current boom purchased (ie ad hoc). I guess it’s starting with a plan rather than the ‘property’?
Great mag (especially now that it’s monthly). Another subject somehow might cover the real value of taking due diligence by the use of some helpful resources available to tap into to fast track this, versus potential pitfalls of risking handing over the responsibility of property investing with buyer agents/ investing clubs, etc.
Cheers!Thank you to everyone for their input. To answer a few questions…
Jo, CGT is a good idea. I am a Chartered Accountant and worked for two Big 4 firms so I am qualified to write on this topic (Derek – not a financial advisor).
Mark, some good ideas. Thanks. I did an article on borrowing capacity and the effect of purchases. It’s called Unlimited Finance.
Derek, I’m pleased that you have a good mortgage broker but does that mean you have stopped learning? I try and read as much as I can because you never know what you may learn. I am not saying it about my articles but just a general comment. I have a good marketing consultant but I still read Marketing Mag cover to cover.
Liz, I like that idea a lot.
Rob, I’m in Melbourne.
Gatsby, this has been covered in my loan structuring article. Thanks anyway.
Cheers
Stu
Just quickly Stu..
Seing as how the June 30th financial year looms.. ( think it’s May in NZ ), for me…and Mist1 ( see her posts ) Taxation articles for novices and advanced..
And those crazy Tax avoidance scheme’s..The Good , The Bad, and the downright Ugly
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Stuart,
And I thought you were a only ‘finance broker’ [bigeyes]. Jo thought I said ‘advisor’
Don’t worry I regularly grill my broker about how things are changing in the market place.
But yes I will read your articles more diligently from now on – all tests to see if I have read the articles can be emailed to me [biggrin]
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
hi stu
read your articles very informative.
an aticle on ‘due diligence’may help a lot of people especially what steps people can take or what information they should gather to present to a valuer inorder to obtain the highest valuation possible rather than relying on a bank valuation.never never never sell
Hi Stuart
one thing that has always gotten in the way of my excitement over a property has been the actual financing and what the LVR’s are for different types of properties and locations.
I would really like a general reference point and information for full doc loans versus low & no docs: for each type of loan:
– what the maximum LVR’s are for different types of purchases (ie. house, vacant land, blocks of units (blocks of 4, 6, 8 etc), commercial property etc..)
– and what effect the actual population may have on borrowing and if there are other location “issues” that banks/lenders may have.
Hope that makes sense – Happy Writing!! [thumbsupanim]
Hey Stu
How bout the treatment of high earning long term casual workers from most lenders??? or the ridiculous and often contradicting lending criteria that has been around for 30 years???
Also, i would like someone to explain how working “full time” for a few years before u get your 30 year loan is a guarantee that it will be paid off…
Cheers!!
Jason
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