"This could go back and forward for ages …. Gerry Harvey became a billionaire by attracting people with cashback and discounting … 80% of brokers IMHO have trouble reconciling … their own credit card …"I think its a worthwhile argument, but I also think we've both made our points, so i'm happy to leave it here. But i will add that Harvey…[Read more]

"Another way to look at it Perry is volume makes money"This is not necessarily correct, and it is also incorrect to say that these businesses do higher volumes than brokers who don't give cash back. There are a large number of ways to attract business in the broking field and devaluing your service by buying business is probably the least…[Read more]

"I do agree with Margaret Lomas' rants about LOC rather than taking out a standard mortgage with offset of interest option..this in order to be able to access any gained equity easier."LOC's have uses, but typically you are better off with standard loans as they are less expensive. It is no more difficult to top up a standard interest only loan…[Read more]

"lots of changes happening to the broker market over the next 2 years – not many brokers pay you money back …"No decent broker ever will. These brokers obviously place no value in their service, generally with good reason.

Hi Marc,To start with, it is costing you money as LOC's are more expensive than standard loans. They also provide less flexability than a loan with an offset. With a loan balance of only $600K, it is not costing you a great deal of money, but it is still not optimum. My argument re Destiny is that they seem to have a blanket policy that crossed…[Read more]

"If you don't know anything about Destiny or Margaret, or haven't read her books, then please keep your opinions to yourself until you know some facts"I assume this was aimed at me. I know enough to express an opinion and the person who started this thread was asking for opinions. You, I and plenty of others have stated differing opinions, so I…[Read more]

Hi Debra,If you are using lo docs please, for your own sake, don't cross your loans. It will cost you significantly in terms of mortgage insurance.RegardsAlistair

I must admit I haven't read anything by Margaret Lomas, but I have heard her speak and I have had clients ask me my thoughts regarding her ideas on debt structuring. The impression I get is that she is very good at promoting herslf, but there is not a lot of substance to her, in terms of her knowledge of either property investing and especially…[Read more]

I must admit I haven't read anything by Margaret Lomas, but I have heard her speak and I have had clients ask me my thoughts regarding her ideas on debt structuring. The impression I get is that she is very good at promoting herslf, but there is not a lot of substance to her, in terms of her knowledge of either property investing and especially…[Read more]

The purchasers will be paying the GST when you sell, not you.

Hi Barney,If you are registered for GST, you can clim it back anyway. If there is a problem with the money upfront, Westpac should be able to set up a short term overdraft to pay it for you.RegardsAlistair

Yes, there are a few ways you can acheive that, subject to your income. Which is best would depend on your personal circumstances. Give us some more info.RegardsAlistair

Give Michael Branov at Branov Design a call on (03) 9642 4114. He's based in town, but knows the planning system very well. He also understands building and how to minimise costs. I used him to design renovations to my own house and refer him a lot of business through my town planning consultancy.RegardsAlistair

You definatyely need a town planner and an architect/designer. If you are in Victoria I'd be happy to make some recomendations.RegardsAlistair

You may be able to get 50% LVR against the business, it really depends on your strength as a borrower as much as the trading history of the business. One problem with this sort of lending is that the ammortisation period is generally pretty short, you may have to pay back the loan in as little as 3-5 years, so principle repayments would be…[Read more]

Hi Cath,I also know a little about ASIC requirements and agree with Richard, you are likely to run into some trouble from ASIC with what you are attempting. Also, you really should get some experience with this kind of deal before you go risking other people's money, it seems from what you have written that the process of rezoning and s…[Read more]

I am yet to come accross a situation where RAMS are the best option, given their very high break costs. If its for an owner occupier purchase and you don't intend to borrow anything else for 3 years minimum, they're probably OK. Same with Ratebusters I suspect. If you are an investor you will need flexibility moving forward, I would encourage you…[Read more]

Hi Lea,As Richard stated 70% would be fairly easy, dependent on location and the clients income you can probably do this at 80% at a very competitive rate.RegardsAlistair

Hi Kurn,A lot of people on here seem to use Dale GG or Mark Unwin, you'll find reference to both of these guys if you do a quick search. I use Mory Kalkopf at Guests Accounting in Caufield http://www.guests.com.au and am happy to recommend him highly.RegardsAlistair

"I think for the situation that was given earlier in the post, the 20% deposit loan wouldn't work in your favour. however, if you were to get the 20% deposit on multiple properties you would then expose yourself to a greater capital gain than if you were to buy a single property. Wouldn't that be a benificial way to use the deposit loan, even if…[Read more]