And don’t forget some banks actually ask you in writing to indicate if there is any sort of rebate or money back at settlement. Westpac does this! NAB too I have heard.

Terryw
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Yes, your right. You would still ahve to qualify via serviceability and would need to come up with deposits (or equity as well). I think Stuart worked it out that a property would help your serviceability if you were getting 11% or more as a rental yield. Another thing to look out for is the line ‘too rent reliant’ which banks sometimes use.

Terryw
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Brokers can’t do much unfortunately. it is a common problem, all we can do is try to argue with the valuer. These days banks are trying to cut brokers out of the loop by ordering the valuers direct so we can’t even talk to them.

Basically do you research, ask the valuer to justify his valuation with comparable sales. See how old these sales are and go back to the bank with you response. Some times it woorks, most times it doesn’t. I am finding the same problems on gold coast property at the moment.

Terryw
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Dan

Watch out for the an/or nominee clause. In some states if will incurr double stamp duty.

In Victoria, you had to have an existing agreement with the nominee before you sign the contract. This agreement has to be written, like a statutory declaration. That was a few years ago, so it may have changed now.

Other states you can only nominate a related entity.

Terryw
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What about the online ING account. rates are about 4 to 5%.

Terryw
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Stacking the contract is not illegal. But not disclosing fully to the bank may be. But banks usually only want the front page of the contract. If there is sonething listed abuot special conditons, then they may also request to see what the special conditions are.

I have heard of people making a provision in the contract for extra work or repairs to be carried out. These don’t get done before settlement and the purchaser gets a discount. eg $250,000 with $50,000 discount if new carport is not errected. But you have to be careful, the vendor may just erect that carport to save themselves $50,000.

Terryw
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Carbloke.

It shouldn’t be too difficult finding employment. The securities institute course looks good, and if you had that it should make it easier. A lot of companies employ brokers on commission only, so if you may be able to start doing broking on a part time basis while working elsewhere.

Terryw
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Hi

It would be great if anyone going to these types of talks could provide a brief summary for the rest of us. Please.

Terryw
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I beleive you must be a licenced real estate agent to be a buyers agent. Check with your department of fair trading jsut in case.

Terryw
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Yes that happens. The old too rent reliant trick!
With that sort of equity, even if you don’t serivce.

I haven’t check your serviceability, but even as a last resort you could (probably-depending on the areas) get a No Doc loan to 65% of you current IPs and pay cash for the new one without mortgaging it!

ps I don’t rebate any of my commission.

Terryw
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