should i invest with equity?

That is really a personal choice. keep in mind you can only use up to 90% of the value, not the equity so you may have less useable equity than you thought. I have clients that have taken loans up to 90% repeatedly and done well out of it, but keep in mind the property bubble could burst and you don’t want to be over exposed.

Hi Jo,
Re your comment “Should I wait until I have 80% LVR so I don’t have to pay LMI?” I’d like to add a few thoughts:-

1. Many investors agree that the paying of LMI can make sense in the generation of wealth – but it may not be the best decision for everyone, so do have an adviser take a look at your situation and discuss things in full.

2. I’ve heard that LMI payments seem to take a huge jump once past 88%, so if you were able to stay at 88% max (borrowing $75k instead of $88k) would this be sufficient for you to invest? It could help you a bit by keeping it lower…. one to discuss.

3. The other side of borrowing at a high LVR is your DSR. If you earn a good income, this may not be a problem for you.

4. Is such a purchase in step with your goals?

Other things include setting up your loans and mortgage accounts in the right way to maximise your benefits (e.g. offset account, keeping certain accounts ONLY for investments, etc). Your adviser should be on top of this and guide you.

Good on you for taking a look at IP’s. Do keep us up with what is happening – we are only too happy to help,

Benny

• This reply was modified 9 years, 7 months ago by  Benny.

I’ve had reasonable success using a buyers agent in Sydney called Plan Assist

To my understanding a buyers agent does not take money off the buyer Jo.
They will do a split normally 50/50 or 60/40 depending on agreement on the commission structure with the sellers agent.

at least in QLD.

Jaxon wrote:

To my understanding a buyers agent does not take money off the buyer Jo.
They will do a split normally 50/50 or 60/40 depending on agreement on the commission structure with the sellers agent.

at least in QLD.

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But then they would be acting for the seller.

A buyers agent is paid by the buyer to find them a property to buy.

I as an agent am happy to be an agent on behalf of someone and charge them nothing providing they sign that If I find there wanted property and they purchase it I receive a split with Sellers agent.

-I am acting on behalf of and for the buyer and on there instructions.

@terryw conjunctions are fairly common but I have never done one. I don’t believe they work very well for the buyer in most instances. It makes for a cranky sales agent every time. Only desperate agents in very quiet markets accept conjunctions. In any warm to hot market it will fail to get through every time, why would an agent say goodbye to such a big portion of their fees? How are they motivated to get the deal done or move their sellers price down? They aren’t.

My introductory emails to agents I have not met yet typically read something like this “Hi, My name is Matt Knight and I am an independent buyers agent (no conjunctions) and I would like to talk to you about….” because I have met so much resistance and suspicion from agents when they think I want their fees. Once we are over that hurdle we are best of friends, I am now their ally bringing buyers and doing half their job for no cost to them. It changes the dynamic instantly.

Really, so I have a question for Knightm and Richard Taylor, (your sellers agent) buyers agent has an offer on the basis of a conjunction, your seller wants offers and is legally required to receive such, what do you do?

Yes you completely understood correct, that is what I meant. I understand your view but also believe the point of any agents is to close deals in a professional, legal manner. Clients on both sides walking away with what they want (house for buyer, Cash for seller) agents get paid regardless. So I see both as applicable depending on market and Property climate.