[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 31, 2016 - 3:13 pm

You may need to consider other securities, if any, that may be cross collaterlised with the IP you are intending to sell as bank will do vals on them.

If the vals dont come back as expected you may be forced to reduce loan amounts on any related securities. This is usually discovered at settlement and can hold up the process. If no other properties involved then should be ok.

• This reply was modified 7 years, 8 months ago by  Colin Rice.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 26, 2016 - 5:51 pm

But I don’t see your job getting any easier

Its getting tougher and tougher but thats the best time to see what you are really made of :)

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 26, 2016 - 1:51 pm

Why do we need all these levels of government?

I heard a stat the other day the that 70-90% of revenue collected is used to administrate government (buildings, wages, cars, pensions etc.) so only 10-30% is used for its intended purpose being roads, hospitals, education, law enforcement etc.

Time we all revolted and self governed!

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 26, 2016 - 1:18 pm

I reckon we will get close to a zero% cash rate within 2 years or less!

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 24, 2016 - 6:32 pm

Just HOW does one accurately gauge Max Pessimism – except in hindsight?

I dont think many can pick it exactly outside of luck but the signs are easily spotted.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 24, 2016 - 5:42 pm

Seems sound to me and should go neutral to positive cash flow in the next few years, that is if your rent is market value with built in increments each year.

Have you had your rent reviewed recently and is it on par with similar properties in the same complex as well as nearby properties of a similar ilk?

Also consider a loan review via mortgage broker who could at the least get you on a better rate with your current lender or if feasible a refinance elsewhere.

These 2 factors could make it cash flow positive straight away and nothing wrong with holding an asset that has the potential to grow and also produces an income which is the goal for all investors, or should be!

• This reply was modified 7 years, 8 months ago by  Colin Rice.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 24, 2016 - 5:33 pm

Yep, sounds like the owner has taken the law into their own hands and built a house with pool with no approvals in place as an owner builder.

Get a building and pest inspection done to see what the quality of the work is like and whether it will have a chance of passing council approval?

Also ask agent how long the property has been on the market? If an extended period then likely others have looked and bailed for a reason.

Could be a demolition job otherwise and you dont want to find this out post settlement!!!

• This reply was modified 7 years, 8 months ago by  Colin Rice.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 24, 2016 - 5:25 pm

What do you see at the pros and cons?

Pros;

Higher yield 7%+ as tenant pays all outgoings.

Longer leases once a tenant is sourced.

Cons;

Higher risk of a long term vacancy especially in a market downturn.

Values are linked to yield, therefore can drop dramatically.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 24, 2016 - 5:18 pm

Welcome Abigail :)

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 24, 2016 - 4:59 pm

LOC can be wound back at banks discretion so you could have an LOC of 300k and wake up the next day and its 150k. Unlikely but happened during the last GFC. People where locked out of redraw as well. Can you imagine if you needed those funds for a pending settlement and all of a sudden they are not available!

They are a clean and neat way of doing things from a loan contamination perspective so still have a part to play.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 24, 2016 - 4:40 pm

hrjmck wrote:

Hi,
Do these meetings still run?

Not sure if they do but I attend a couple of different groups and can keep you in the loop if you like?

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 24, 2016 - 4:31 pm

1. Dont cross collaterlise

2. Dont chase rate as its one aspect of many to consider

3. Dont DIY – get an investment savvy broker to do it for you – this is a specialist area even though all brokers say they can do it!

4. Be respectful of a brokers time and acumen as they are working for you for free until a deal actually settles – sounds like you are already aware of this.

5. Read forums like this to self educate so you can spot bad advice.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 24, 2016 - 4:21 pm

1. Do you think Templeton’s quote should be applied to the Australian property market in general? Why or why not?

Im hoping so as currently in acquisition phase.

2. Are there any cities in Australia where you think property market optimism is at a peak?

Sydney – at peak or close to

Melbourne – at peak or close to

Brisbane – a little ways to go for peak

Adelaide – approaching peak

Perth – declining market (my current hunting ground)

Darwin – Decline

Hobart – dunno :)

3. Are there any cities in Australia where you believe market pessimism is at a maximum?

Perth.

A similar quote by warren Buffet;

“Be scared when others are greedy and greedy when others are scared” – Warren Buffett

• This reply was modified 7 years, 8 months ago by  Colin Rice.
• This reply was modified 7 years, 8 months ago by  Colin Rice.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 23, 2016 - 9:48 am

Do you have experiences with any quantity surveyor that you can recommend me? Thanks in advance.

Hi Tran, I use Deppro personally. Washington Brown are another reputable company you can try.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 21, 2016 - 12:13 pm

I’ve heard a few brokers mention that a lot of the bank valuations for purchases in this area are not stacking up against purchase price.

If the sellers are willing to give you a copy of the contract (unsigned) you can get an “as if complete” valuation done upfront via a broker.

You can always request a copy and say you are getting your lawyer to review first before signing. This is something you should do anyway. I have had things ammended and removed upon advice from my gun property lawyer using this common sense yet under utilised practice.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 19, 2016 - 5:29 pm

Good one. I have only ever heard good things about Connective so must be doing something right!

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 18, 2016 - 4:55 pm

Profits on renos are generally around the 20% mark if successful. Have you crunched numbers to see if it is profitable before proceeding with structures and the associated time and costs involved?

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 18, 2016 - 4:48 pm

As Jamie stated its not necessary to see someone face to face due to technology such as Skype, email etc.

Got many clients who I have never met in person through out Australia and overseas and no issues that I am aware of.

This guy is a great broker and is Sydney based: https://elitepropertyfinance.com/contact-us/

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 18, 2016 - 4:46 pm

Im with AFG and reasonably happy with them.

Did look at Connective but was going out on my own at the time so gave it a rain-check as it was to disruptive to my business at the time. I do like their flat fee model and wondering when, if ever AFG will offer something similar in order to remain competitive.

All the best.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 18, 2016 - 4:33 pm

Just keep them stand alone and not cross collaterlised. Unless you have specifically told the lending officer at the bank or broker chances are it may be.

Best way to check is to look at the loan contract under the SECURITIES heading (usually a few pages in) and if you have more than one property listed its cross collaterlised and needs to be uncrossed.

Get an IP savvy broker to check if not sure and also to restructure and clean it up.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]