What do people think about investing in mortgages. Bransgroves Mortgage Solicitors in Sydney are paying 9% for 1st and 17% for 2nd mortgages ? Interest paid monthly for a minimum term of 12 months minimum $10K. They say they have never had a loss. Does anyone have experience with this ?
Generally the higher the return the higher the risk.
However these would be secured by residential property so I imagine this minimises the risk. This is not investing in real estate though.
There are all sorts of investments like this including venture capital, solicitors mortgages, mezzanine funds etc
All the best,
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.
Both properties I am looking at have a LVR of 72% which I think is pretty good ??
Second mortgages are inherently more risky. Most banks don’t do them anymore.
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.
How is a 2nd mortgage different from refinancing and just borrowing more against the same property ?
Hey mcollins,
I currently have a $40k investment in a morgagte. it is at 6% i think, and i grabbed this oppurtunity as it was reasonably higher then the banks. Personally i would not go with an interest rate of 11% it sounds dodgy to me. But i am sure a little investigating wouldn’t hurt.
Matt“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Normally this is the case. Where someone like a developer wants additional funds for infrastructure they go for second mortgages.
For example I have a client who has a first mortgage against a large piece of land and needs additional funds to develop it. He is willing to pay 24% over 12 months for it.
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 MCollins
I may share some expeience with you. I have three times of experience to invest to 2nd second mortgage, the rate is from 16% to 20% pa. Usaully the LVR not exceed than 80%. If you want more details you could email to me. [email protected]Regards
Julian
Hi MCollins
I may share some expeience with you. I have three times of experience to invest to 2nd second mortgage, the rate is from 16% to 20% pa. Usaully the LVR not exceed than 80%. If you want more details you could email to me. [email protected]Regards
Julian
Hi MCollins
I may share some expeience with you. I have three times of experience to invest to 2nd second mortgage, the rate is from 16% to 20% pa. Usaully the LVR not exceed than 80%. If you want more details you could email to me. [email protected]Regards
Julian
Only desparate people pay 11-17%. How desparate are you for a good return.
Ever hear of Estate Matgages….or Custom credit..?????
Did’nt think soThese aren’t desperate people at all. They are usually developers looking for short to medium term finance that don’t fit the mould of the residential borrower and as such aren’t catered for by the Mum and Dad lenders.
These sorts of rates are factored into their proposals and are covered by the projected return.
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.
I agree with MH, I put a few clients into these sorts of loans. They are usually high net worth people who don’t fit the rigid guidelines of the banks and they are after short term finance so they can add value and then sell or refiance asap.
2nd mortgages are more risky as the 1st mortgagee naturally has first access to the security if things go wrong, then the second mortgagee. So if the valuations were a bit high, or prices have dropped or the security property has deteriorated in someway, then the second mortgagee could do their dough.
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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