All Topics / Creative Investing / Agency fee / commission included in the loan or pay cash ?
Hi All,
I’m wondering if I shall exclude this agency fee out from my Interest Only account or pay cash straight away ?
Because when I sign up with one of the wealth building agency (JDL Strategies) in getting the Interest Only 95% loan with Bankwest, they put the $8500 fee into the loan so in total I can get $608.500 in total estimate.
This IO account has the offset facility to let me re-draw and repaid as often as possible.
Hi Henry
I'm not quite following the question.
Are you using these JDL guys to help you find property and also to organise finance and they're capitalising their fee onto your loan?
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]
Jamie M wrote:Hi HenryI'm not quite following the question.
Are you using these JDL guys to help you find property and also to organise finance and they're capitalising their fee onto your loan?
Cheers
Jamie
Yes, they put the $8500 into the loan account.
$8,500 is a very large fee! ( i will do it for $8,000 whatever it is).
However, if you are happy to pay this, and it does relate to an investment property then it would be far better to borrow it (in terms of tax) then using cash as the cash can come off non deductible debt first.
However, by borrowing it how much extra is the LMI going to cost?
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
Henry Adams wrote:Yes, they put the $8500 into the loan account.Really? I don't know how they could add this to a 95% lend……
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]
Jamie M wrote:Henry Adams wrote:Yes, they put the $8500 into the loan account.Really? I don't know how they could add this to a 95% lend……
Cheers
Jamie
Hope he hasn't used other security.
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:$8,500 is a very large fee! ( i will do it for $8,000 whatever it is).However, if you are happy to pay this, and it does relate to an investment property then it would be far better to borrow it (in terms of tax) then using cash as the cash can come off non deductible debt first.
However, by borrowing it how much extra is the LMI going to cost?
Actually to be precise it is $ 8700 once off and JDL Strategies mention that this fee will be covered once we get Tax Depreciation for the house which will be $10k+ in the first year.
Without the fee the depreciation schedule would be the same too.
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
Agree Terry and Jamie, What a read….I would run and run and run from JDL. They seem to get a lot of bad press. Has anyone had sucess with them at all? Just read that they also over value property, overvalue expected rental on property etc Bet they on the radar now.
Had to write this as I am a regular visitor to this blog. What a disaster jdl strategies are. If you want to snap up a cheap (bargain) investment property you can buy one from a disgruntled client of the company (client who has brought an investment from jdl). I am told that many properties are now on the market cause the poor investors are freaking out and getting out. Doesn’t that tell you something about this company? Get a good broker/advisor and do it yourself.
Gordie,
Yes you are right mate, somehow the $880 is the only price that i lost so far for the lifetime registration fee.
They are only specializing in building new house in QLD area especially COOMERA. They didn’t tell me about this before until I realized that it was too late.
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