Forum Replies Created
Hi Happy Homes
What state are you located in? and does the Finance Broker/Team have to be in the same state as yourself?
Hi Happy Homes
What state are you located in? and does the Finance Broker/Team have to be in the same state as yourself?
Hi Everyone
I noticed that all the brokers that posted comments made mention that it is a very hard industry and hard to make money.
I have gotten rid of 4 brokers in the past 18 months, from scheming, lying and acting in their own bests interests.
I take out a loan on average once every six months.. I am a long term repeat customer.
Do you not believe that if you act in your clients best interest over time, you will be flooded?
Just to confirmt that in W.A. you must have a mentor, either an individual with a B class licence or join an aggregator.
1. Do you Cert IV
2. Find an aggregator to mentor you, you must do this for 2 years
3. Apply for your own licence and work soloMake sure you interview the aggregators… each will take a different percentage of your commission and make sure they provide you with a plan of how they will train you and what they have to offer. Some may even offer you a certain amount of leads.
For eg. there is one in Perth and you have to sit at their office every Wednesday all day to be trained. This is invaluable. many will not even set you up a proper program.
Remember your business will also come from building a relationship with other businesses who will refer your services to other clients. ie. real estate agents, financial planners….. you get the gist.
GOOD LUCK!
Hello BJBJ
All my investment properties are in my individual name. I did not see the benefit of setting up a company to buy IP. This is not to say it is wrong. Do you mind explaining why you put them in a company name so that I can educate myself?
As far as I know, you can only claim the tax back if it is in your individual name. It is offset against your income.
If it is in a business name, at the least it would have to be offset against the income from the business? if in fact it is a proper running business and not just a business you set up to buy IP.
Hopefully an accountant can clarify this for us!!
Hi Jambv
I do not know much about Japan however, I do know they went into a recession years ago and are just climbing out of it.
Predications are that property prices will climb in the next few years..
I guess when investing overseas, the thing you have to pay particular attention to is the politics…. and how they feel about foreign investors ect. As far as I know they are foreign investor friendly but make sure you do your research.
There is no point having a cashflow property with a mortgage on it that the government could cease and you have nothing. I would not think Japan is like this but something to look into before investing into any overseas country.
Check out all the usualy stuff, vacancy rates, property management ect.
Good luck!!
Hi There
Sticky situation but I guess it all depends on the attitudes of the tenants.
Are they going to move out asap? Do you they owe you backpay in rent?
If they are decent people they will move out asap and you should be able to find tenants in the current Australian rental market asap.
If they are not going to move out, then I guess you have to go through the normal eviction proceedings ie. issue eviction notice and then proceed with registering with the couts….. In W.A. all of the forms and what you have to do can be found at
http://www.docep.wa.gov.au/default_cp.asp?id=cp/dev_publications/forms&menu=menu_cp
Even if you go through insurance, they still expect you to minimise your loss which means still following through with the correct procedures. I am not sure of the procedures in other states, you will need to look this up.
Although they may not be in a good situation, you are an investor and not a charity so make sure you look after yourself.
Hi Adakon
Do you like in W.A. or in another state?
Do you want me to add my comments now :> lol
It all depends on your strategy.
I have 1) read all of Margaret Lomas's books 2) attended many seminars 3) seeked finance advice from her brokers. Although they may offer sound advice for older people close to retirement, mums/dads or cautions investors… I do not find their plan or advice to fit what I am personally looking for.
I do not want to take 50 years to accumuldate wealth and they tend to look at property portfolio's as a superannuation fund whereas I am building a portfolio to obtain financial freedom young.
They are for the cautious, mum and dad investor. If this fits your strategy, then why not… if not, I would say search for something else. There is plenty out there to choose from.
Good luck!
Hi There
LOL relax :> setlement is four months away… and the Perth market is over heated… no one is buying and flipping it out of the question… was so silly and it is great that i have learnt this lesson.
I have just been advised the I paid at least 75K too much for this block..!!!
I am in the process of seeking legal advice..
Hi Terry
The develop is smack bang on time frames… the block has not gone up, in fact, half of them from the same development are still for sale.
This is a big learning curve for me!!!
Thanks for that, appreciate your feedback.
This may sound like a niave question but I have seen houses selling for 50k.. how do you even build a house for 50k.. it just doesnt make sense to me.
To build a house must cost nothing in the U.S.?????
Hi Richard
The Queensland property was at 95% purchase price was $335000 and loan was for $318000
Am I being resonable asking my broker to shop around? does that mean the loan can stay with Westpac still???
What is your professional opinion?
Guys, links to define consumer… what do you think??
1. Covered under the code
http://www.creditcode.gov.au/display.asp?file=/content/credit_does_cover.htm
2. Not Covered under the code
http://www.creditcode.gov.au/display.asp?file=/content/credit_does_not_cover.htm
But Terry, surely the finance broker knew that it was not in my best interests to finance and cause all thse costs. Surely, he was only taking his best interests into consideration.. to refinance to earn to trail commission and the loan commission.
I was told by the old regulator of the UCCC that I am included in their code because I am not defined as sophisticated ie. worth a certain amount of month and also that it was still residential property. So I am not sure who has their facts wrong..
At the end of the day, the broker has a duty to act in my best interest surely, this would be covered with Uniform Credit Code or trade practises or somewhere.
He has either deceived me or is completely incompetent to be doing his job.. and has still given me no clear answers to why he did what he did
Surely, there is a law against this!????
I will be going Bank of Adelaide for this too and all of them, cos even during settlement disbursement these fees have not been included ANYWHERE but yet Bank of Adelaide paid it to Homeloans automatically… they just took it out of my equity.. it is noted NOTED nowhere…I did NOT sign anything to give them the right to pay that money.
I will call UCC on Monday to get the definition absolute… and I will still be lodging a complaint with Unform Credit Code cos they are and MIBA who they are also members of.
I will let you all know what happens.
I am a very determined women and they will not get out of this easily! out of principle. I feel like they have stolen from me.
OK the loan was managed through Homeloans Limited through AdelaIaide Bank. The loan has been taken from Homeloans and put DIRECT with Adelaide Bank now.
Like I said, the equity application form was the same form used to refinance as well and cos it was on Adelaide Bank letterhead and I was with them anyway, I thought nothing of it.
When I called Homeloans they told me there was no reason for equity to not be simply drawn through them via another loan.
Adelaide Bank have said the same thing! they are also confused.
There was NO REASON or any benefit for my loan to be closed down and refinanced with the SAME bank.. and my broker has given me no valid reason except that it was faster and easier and that is why it was done!
Faster and easier for that amount of money without my knowledge, no way!
Not disclosing things clearly or fees.. no way!
I agree sometimes people need to refinance for various reasons and have no options. My partner and I earn good incomes and have loads of equity.. it was completely unncessary!
No you dont only do this is you know someone wants to sell.
If you know something is happening in an area or see added value in a piece of realestate… I have known others to knock on doors! start shacking some hands and giving people that winning smile :>
And of course a realestate option is similar to a share option. You have the option but not obligation to buy… but you do lose your deposit.
Ah Terry the reason I have been charged break costs is because the two loans were originally with a mortgage manager! my broker took them from the mortgage manager and placed them directly with the bank.
That is how I got charged break costs!
I called my mortgage manager a few days after settled and they said “We cant help you, your loans have been closed down” and I was like “WHAT, how”
Hi Terry
I understand what you are saying, YES i signed a loan document on “BANK OF ADELAIDE” letterhead. The loan was already with this bank and I NEVER instructed anyone to REFINANCE my loan but simply draw equity.
I have been mislead and I had to pay break costs but I didnt know I was breaking any loan.
I wont stop until I get a resolution. I am a 28 year old female and its principle, not money.
Its strange I was told by the UCCC old regulator that you had to be worth a certain amount of money before you werent covered.
Will let you know what happens. I think I may instruct a lawyer if I cant go the UCCC or Credit Ombudsman way. Im not gonna let him get away with it.
Thanks!!!
What you are talking about is called an ‘OPTION” not “Rent to Buy”
You make your offer to purchase the “OPTION” in the same way as if you were buying the property, except your premium (deposit) is not refundable if you do not exercise the “OPTION”
So you pay the premium and say you will purchase in 6-12 months.
Options are another form of leverage, you are in control of a large asset for a small amount of money by using only a premium (deposit).
You do this IF you know that the realesate is going to worth alot more in the near future, you are banking on something happening that no one else knows about.
SO you obviously offer the Vendor slightly more money than what its worth to make it an attractive deal.
Obviously if the realestate tip you have doesnt come through you dont exercise your “OPTION” and you lose your premium (deposit) and have nothing.
“OPTIONS” are best used when you know you can add value to a site quickly and on-sell the project to another buyer (ie. building or developer) prior to the expiry of the “OPTION”
Make sure you include a clause on the contract that
“Purcahaser can transfer this option to others” so that you can onsell.
“Vendor to give rights to you to approach council with regards to the propety”
I hope this makes sense!!!!! let us know…
I think they all have things to answer for and I think my broker wanted the trail commission because it was originally finance through another broker.
The bank told me a letter SHOULD have gone out to me confirming break costs ect but they have no record of it.
I have also checked my “Mortgage Contract” and “Settlement Disbursement Fees” and the $10k is not NOWHERE! It was NEVER disclosed by ANYONE!
I have a headache :< poor me! :>
