Hi,
This is my first post.
What are the advantages of interest free loans opposed to standard loans?.
Is there a loan provider who ‘shines’ compared to the others?
Are mortgage brokers really worth the money?
Thanks,
itsamoorey.[?]Mortgage Brokers are all ratbags[
]Depends on the situation as to my recommendation for IO or P&I. In many cases for an IP IO is preferred.
As far as products go it is a bit like asking which is the best car? It all depends on the drivers needs.
So post some more info and lets see what we can suggest.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi itsamoorey,
You asked if Mortgage Brokers are worth the money?
Most Mortgage brokers do not charge their clients a fee for their service,
Myself and I suspect the other brokers who post regularly on this forum, are paid a fee from the lenders/Banks,
Kind Regards Steven,
P.S Are you a Dean Martin Fan?[email protected]
http://www.mobilemortgagemarket.com.au
Ph: 0402483216Welcome to the forum itsamooray
Interest Free loans for real estate? Never heard of it, please tell me more?
Regards Bear
My bad,
I meant interest only.
Thanks for your replies, I’m still a little unsure so i’ll think about it. I have been told in the past that the majority of mortgage advisers are paid spinoffs for recommending certain bank loans.
If this is the case how do you find a mortgage broker who is unbiased and more importantly honest?
Thanks for your replies,
itsamoorey (not a fan). [|)]I can personally recommend Simon from Mortgage Hunter, he organised our loan and is very helpful, really honest and also unbiased.
I have nothing but good things to say about his services.[^]
I don’t live in his area but we were able to arrange everything by faxing and emailing.
He always promptly replied to all my enquiries and many questions!Regards, Cecilia
Thank you for those kind words Cecilia! As I told you earlier you are a dream client!
itsamoorey – all brokers get paid for their services. There are very few of us left that do charity work these days! [
]All brokers get paid a spinoff – thats how we get paid. The fear out there is that we only recommend the highest paying lenders. This is easy to check – just ask the broker what he is being paid compared to the big four lenders – it should be similar. If in doubt give me a call and I will let you know if it sounds right!
Have fun,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks Simon,
I’ll keep that in mind. May also use you as my
mortgage hunter too, will see how things go.
By the way, what are you paid compared to the big
four banks?
[
]Thanks again and have a good xmas break.
Thanks mate,
What I mean is we all use many lenders and steer a client acccording to his needs.
The main banks pay us a commission based on the loan size and the smaller ones pay more or less depending on their marketing strategy.
So for example many lenders pay less than half of what say ANZ might pay whilst others pay slightly more – maybe even up to 30% more.
The fear is that we only recommend those that pay the highest – so asking your broker to disclose his fee will help avoid that.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Simon,
Thanks for that, i’ve been researching both io and
p&i. I’m not too sure which way i’ll go at the
moment, are the repayments vastly cheaper if i go
the io option? One question I have and i’ll
probably post it later (after a few quiet, much
deserved holiday beers) is:
After purchasing the first investment property,
how do single people on a single income save the
cash or establish the equity on the first loan in
order to get a second loan happening? Surely the
first loan must need to have equity somewhere in
the vicinity or 10 – 20k in order to secure
finance for a second loan? I wonder how Steve and
his investing partner did 130 in 3.5yrs?? I think
they deserve a medal just for finding the
properties let alone finding the equity to secure
loan after loan….
Anyway, still deciding whether io or p&i is for
me? p&i is prefered (for eventual capital gains or
as a superannuation top up) but io will do fine if
the repayments are a lot less and i can save for
the next deposit?
Thanks for your help.
itsamoorey
p.s. will keep you in mind when i’m going topurchase and when i have more of a clue.[|)]
Am I debunking a myth here.
I thought that the 130 properties Steve and his partner bought in 3.5 years means that they do not necessarily have 130 properties now. They bought and sold a number of them in the 3.5 years and may only have 40 or 50 in hand at one time.
Am I correct?
That would be how you finance the next deal, itsamorey. You sell and use the capital gain for another 2 properties (or more if your lucky)
‘Eat rich food, barbeque a yuppie’
An example of the different repayments. eg using a loan of $100 000 @ 6.47% over 30 years then P&I repayment is $157.52 compared to IO at $124.52.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Rugbyfan, from what I’ve seen/heard I don’t think Steve is big on selling places.
I think (stats from sometime in the last three months) Steve told Today Tonight/ACA/some current affairs show that he now has 160 properties, 40 of which are wrapped.
Cheers
MelHey,
I attended Steve’s seminar in Brisbane and he mentioned in one of his power point slides that people should “Avoid ‘Interest Only’ terms, P&I are better.” But he also mentioned that I only loans are sometimes good for commercial property.
Hope this helps.
Matt“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Hey guys,
Thanks.
Simon, thanks for the answer to the io p&i
question. p&i would probably make sense I guess,
especially as i’m looking to retain the majority
of my properties, in a boom market it would
probably be easy to sell the odd property here
and there to finance other acquistions but…
do you really want to have to sell pos geared
properties so you can acquire more? I thought that
Steves idea was to use pos geared income to
replace your own? So, i’m guessing that you save
a deposit or two, then wait until you have enough
equity for a third and continue from there??
Simon, if i can afford a 20% deposit and avoid
mortgage insurance do you think that’s wise or
should i divide that deposit and purchase two
houses? (i prefer the later at this stage).
Thanks again,
itsamoorey[|)]Itsa,
That is a call that is really up to you. You need to decide what you want to achieve then we can tailor a plan to suit – whether it be one acquisition or two depends on your strategy. Best to think this out clearly rather than make it up as you go along.
Remember those who fail to plan, plan to fail.
You shouldn’t be scared of Mortgage Insurance – without it you wouldn’t have the flexibility to borrow more than 80%.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
For a final word on P&I vs IO remember this.
If you have any non deductible debt such as a PPOR loan then you should go IO on the IP.
This allows you to direct both lots of Principle into the non deductible debt.
Have a great weekend folks.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks Simon,
currently reading through ‘your mortgage’
magazine, trying to learn more and more everyday.
I’ll be in touch when it’s time to invest… I’ll
probably just do the one as it’s my first then
i’ll venture out and purchase the second. I think
that i definately have to plan a lot more… I’ll
probably wait until Feb then start the ball
rolling with a vengence.
Thanks again,
itsamoorey
p.s. no other loans at all so I was thinking about p&i, will see… payrise next month which is always nice though! have a great weekend too!![|)]Hi, I’m just a newbie to the forum and i would like to ask what is the most effective option when wanting to keep purchasing properties without running out of borrowing capacity?
As far i understand with IP loan your repayments would be greater but in the long run would pay off your property quicker then IO but in terms of borrowing capacity in the long term wouldn’t you be affected by having IP instead of IO?
Any examples would help and thanks in advance!
[
]Michael
yes, most banks assess you on what your current repayments are. So if you are using PI loans you monthly repayments would be higher which would mean you have less money leftover to invest, and therefore less borrowing capacity.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
]
]
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