Hi there
I'm after some feedback…having attended Steve McKnight's RESULTS programme I changed careers and became a mortgage broker.
On a monthly basis I now present at 2 different property investment forums on matters relating to property finance.
What I want to come up with (and here's where I need your feedback) is 11/12 topics that all new (and possibly experienced) property investors need to know about.
My suggestions so far are:
1. How to release equity from your property
2. Refinancing – what does it cost?
3. So you want to be a FT property investor – how do you do it? (from a finance perspective)
4. How to finance a renovation
5. How to finance a construction deal
6. How to complete a subdivision
7. Valuations – how to challenge them
8. The difference between residential and commercial mortgages
9. Fees – LMI & Stamp Duty – what are they & how do you calculate them?
10. Interest Rates – why do they change?What do you think?
Are these the things that as a property investor you need to know/ would really benefit from knowing?
If I missed subjects/ topics please suggest them.Thanks for your help
NeilQuote:What do you think?I think you're trying to sell ice creams in the winter…..
Go back to your previous job before unemployment rises and you find yourself without a job.G'day Neil,
I think that if you can cover that list comprehensively you are doing well. I dare say that the attendees may tell you what they want to hear about from time to time. People generally like to hear about case studies and examples – i.e. a presentation on funding a development should include working through a real life feasibility study etc.
It is definitely an interesting time in the finance market, brokers commissions are being cut by the banks and it is expected that 30% – 50% of mortgage brokers will be squeezed out of the market within the next 2 years.
Adding value to your clients and having a competitive edge will be the key to sustainability in this market. What is yours?
Chris White | Pillar Property
http://www.pillarproperty.com.au/
Email Me | Phone MeThe Property Investment Specialists
Neil,
As long as you are passionate about your career in finance and are proactive …. you will do fine in the finance industry in any state of economy…. your business is what you make it.
I've been in finance for 8 years now and my business has grow well more than double over the past 12 months not shrunk as many would expect…. so don't pay any attention to the 'dooms day theorist, scamp! Yes… me again scamp! Would love to know what you do for a living scamp???
I agree that up to 50% of mortgage brokers will exit the industry … more like in the next 12 months …. why?
Because firstly, many brokers are lazy and dont want to market themselves …. and dont want to study again as they will have to do. As of July minimum qualifications will be Certificate IV in finance and mortgage broking (and next July for Existign brokers over 2yrs experience).. people do hate change don't they …. lots of changes to come!!!!
When this tightening of qualifications swept thru the insurance/finance planning industry a few short years ago …. the same thing happened there too! One report showed membership of about 2000 members and after regualtion only 900 renewed … the rest left the financial planning industry … either because they had enough and retired and/or refused stubbornly to become accredited.
Means more opportunity for those that hang on … and maintain their passion for the industry. Adjustments to business strategies will need to be made.
I also agree that value adding is ever more essential to your business ….. what you also may not know is that as well as banks cutting commissions, they will almost certainly all cut out the trailing incomes for new loans within the next 12 months ….. since your companies business is based on aggregation and trailing incomes to survive (the parent co. not yourself) …. with great respect, I suggest you be aware of this … because this may affect your business in the futre. Many aggregators will fall over in the near future when this happens unless they value add and diversify…. if their whole business model is based on trialing incomes as most aggregators are.
You should also know that asic will continue to regulate advise and will continue to clamp down on those that are giving advise and are not licensed to do so. Even using such words as investment property and investor will come under very close scrutiny for those using such words and give advise. eg …. how can you class a property as an investment property if it can lose value over the next 12 months?? Isn't an investment supposed to make money?
Do you want to be the first case to have to pay the clients loses after their property value drops and they deem you to have given them advise to buy that property? I'd start dropping the use of these words and start reinventing better ways …eg rental property does not give advice on making money or losiing money …. it simply states that it's a property that you own that you dont live in and receive rent on. It may gain or lose money …
Hmmm … something to think about???
You must be logged in to reply to this topic. If you don't have an account, you can register here.
