I'm being gently pursued by a couple of sales people from this organisation, and I like much of what I am hearing. Does anyone have any experience with these people?
They are just mortgage brokers who “specialize” in equity release and debt recycling – a service most brokers can offer these days.
Do they charge any fees? because what they offer is what most brokers can offer for free…But no i have not heard or dealt with them before.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Be careful of the tax consequences of an improperly set up structure.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
And remember, refinancing debt doesn't make it disappear, in-fact most times it means it hangs around longer.
Just be careful of mortgage brokers that sell new properties as part of their debt reduction plan. We've seen quite a few sell overvalued properties, just do your own due diligence and research into any strategy they propose. I haven't dealt with them before.
Hi Shales, I am also being persued by RPM Nationwide, and yes it does sound real good, they say I can have my mortgage of 240,000 paid off in 6 years as well as have up to 2 investment properties, with no extra repayments made on my behalf. hey tell me they have been around for 15 years , ( who knows ! ) They charge a one off fee of $6500.00 and then promise to look after you for as long as you have investment properties. The investment property is a bit of a mystery,and a bit confusing, they say that you buy the land ( so that the stamp duty is lower) , that they recomend and then build a house on it ,but the price you pay for the package is the price that the bank values it at . ( I dont get that bit ). I am trying to get more info without paying the $1000.00 deposit, which you pay before all the valuations are done… we'll see what happens, if anyone else has any info or comments i would love to hear them
Cheers PeCats
PeCats
I would suggest you do some research before signing up to such a scheme.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw wrote:PeCatsI would suggest you do some research before signing up to such a scheme.
Agreed – if it sounds too good to be true…..you know the rest.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
$6,500 as entry cost, they buy the land to lower stamp duty then make you buy it off them?? ( stamp duty will still be payable at the market rate or selling rate, which ever is higher!)
It sounds like a scam….
Click on contact page, and if it’s an Nigeria address RUN ahahahMy advice, if you have to “question ” how a company works or question its legitimacy- then don’t bother! save the tears/heartache and move on.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Its probably not a scam, just an expensive scheme to capitalise interest on the investment loans while paying off the family home loan first.
I would be concerned about:
1. The high fee
2. The fact that they are also selling property, or steering people into property sales
3. The fact that the ATO could disallow the deductions on the capitalised interest – which is certainly possible if it is done with the dominant purpose of claiming a deduction. It is also possible that the interest may not be claimable if set up incorrectly.
4. Their insurances may not cover them for the provision of tax advice.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Good advice TerryW
One simple advice: Stay Away From Them.
Angel
Hi,
Thanks for the replies. I haven't got that much information from them. We live in a remote part of QLD, and they have offered to pay half our air fares to fly to Brisbane to see someone. That got us a bit nervous. I'm going to give it a big miss. We have paid off both our PPOR and our investment property, and we have other investments which we own outright too. It is time to spend again and borrow money, but we want to be fairly careful first. My brother is going to do the RESULTS programme, and I'd love to do it to, but being remote, it is hard to act smartly on RE, and to be thoroughly well informed about your market. So, I'm not sure that we will have the opportunity to actually use that knowledge, we would be better waiting until we are located closer to a market so we can use the knowledge straight away. Anyway, I guess I'll give this lot a big miss. For me, the fact that they are selling property, and that they want $ up front are both a big no no. They hadn't told me that part yet.
Cheers
SHIt’s funny reading posts from mortgage brokers that are working on pure assumption. Not that there is any conflict of interest but I’m sure they will tell you they can do a better deal / offer on a home loan.
My wife and I have been an RPM client for some time and many of the posts above are inaccurate. RPM are not mortgage brokers, property developers etc.
They assist clients to reduce their mortgages and build an asset portfolio. I was doing this alone and went to them for advice, it was a less risk option for us as they have a number of experienced associates that they introduced us to.
Our finance is with a reputable bank, we built our investment with a known builder and all the legal and financial advice was independent of RPM. I was happy to pay for some expert advice to reduce the possibility of me making an expensive mistake going it alone.
SHales, I don’t understand your comment about them wanting money upfront. We didn’t pay a cent until we were satisfied that we wanted to proceed.
In the end I’m happy with my decision and have recommended many friends and family.
ozkar wrote:It’s funny reading posts from mortgage brokers that are working on pure assumption. Not that there is any conflict of interest but I’m sure they will tell you they can do a better deal / offer on a home loan.My wife and I have been an RPM client for some time and many of the posts above are inaccurate. RPM are not mortgage brokers, property developers etc.
They assist clients to reduce their mortgages and build an asset portfolio. I was doing this alone and went to them for advice, it was a less risk option for us as they have a number of experienced associates that they introduced us to.
Our finance is with a reputable bank, we built our investment with a known builder and all the legal and financial advice was independent of RPM. I was happy to pay for some expert advice to reduce the possibility of me making an expensive mistake going it alone.
SHales, I don’t understand your comment about them wanting money upfront. We didn’t pay a cent until we were satisfied that we wanted to proceed.
In the end I’m happy with my decision and have recommended many friends and family.
Nice first post.
Can you tell us if it involves capitalising interest on the investments and directing all funds to the PPOR loan?
Any ATO private rulings provided?Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
My Tax advice was provided by my accountant and not RPM and no the program doesn’t work by capitalising interest.
It simply uses an effective bank product together with good cash-flow management. I chose property as my vehicle to make it all work and RPM assisted. They have a number of associates such as builders, financial advisors and brokers who they introduced me to.
Like many of the comments above I was sceptical at first but once I did my own research and asked lots questions I was comfortable. I noticed one such comment about them or similar companies selling the houses at over inflated prices.
In my experience it was the opposite, they introduced me to a property consultant who found me a house and land package that I purchased at near the bank mortgage value. (something I didn’t quite understand at first)
I also learnt that buying a new property vs and old one saved me on stamp duty and gave me better depreciation etc. This goes back to my first post and the point about not learning from my own costly mistakes.
I can understand peoples cautiousness but its like anything, do some research, ask lots of questions and only when you are satisfied make an informed decision.
As for your ATO question, my accountant said everything I was doing was within the ATO guidelines.
Cheers
Sounds good. But how much did it cost you for the RPM fee? And was their service something that a good broker couldn’t provide for much less?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry beat me to it.
The other comment which concerned me was
'They found me a house and land package that I purchased at near the bank mortgage value"
The Bank valuation should always come it at the purchase price and not somewhere 'near'.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
The RPM fee I paid was several thousand and it was a once off fee. I paid it using some of my equity and claimed it as a tax deduction.
I’ve never met a broker who does more than just finance, the few I have dealt with over time have done nothing more that charge me for their serves and put me into a new loan.
RPM are not brokers and they guided me through everything, in fact they didn’t sell me a house and land package they introduced me to a property consultant who put together the package.
RPM explained everything, and pretty much managed the process so i could be as involved or as hands off as I like. Show me a broker who does more than just finance. RPM have many associates and relationships that I was able to leverage for advice.
As for Qlds007 comment about bank valuation. Market value and bank mortgage value are two very different things. Bank mortgage values are way under market value. Thats how they protect their interests.
For example if you buy a house for $350,000 the bank may only value it at $300,000 but will still lend you the required amount if you thrown in the deposit and your home as security.
What a house sells for and what a bank values it at are two very different things. Earlier comments in this forum suggested that some schemes sell home to investors at over inflated prices, I don’t think the bank mortgage value would align with these over inflated prices if that was the case.
Richard can I ask, if I came to you (I see you are a broker) do you have a panel of builders and developers I could talk to? do you have independent licensed financial advisors I could run things past? Relationships with accountants who specialise in investment related tax matters? Property managers who can manage my investment? or do you just search the hundreds of existing loan products on the market and get me a lower interest rate.
RPM helped me with all that and helped my wife and I to reduce our loan from over a 20 year term to less than a third.
God my answers are long winded. lol
Wow. 3 posts all in praise of rpm.
Do you work for them? Of course not. Just a happy customer.
People. Do your own research and critically examine things before locking yourself in
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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