New Investor

Hi,

My suggestion is to spend a bit of time reading through the forums, property magazines and books. By just meeting up with one broker you will only get one view. Having done some research prior you will have a better idea of what you are comfortable with and can ask more questions of the broker.

If you want to PM me your email address I can send you a couple of resources.

Regards

Gibbo

Hi Prospector,

Welcome to the world of investment property!

As others have mentioned, the books, magazines, and forums are great. I’m a big audio-visual person so I’ve discovered Youtube as being a great mecca for local advice by industry experts and professionals.

I also keep my own blog (funnily enough it too has ‘spectator’ in the title!) where I very recently blogged about the dangers of listening to mainstream media (versus specialist media resources such as this very forum). See, I’m from (And still work in) the media industry myself so I know how misleading it can be.

This post is really worth a read, check it out if you have a few spare minutes:

http://www.propertyspectator.blogspot.com.au/2012/03/mainstream-media-glamorisation-of.html

Cheers,

Wow prospector hate to say that is probably the worst thing you could probably do.

Your lender will be looking to maximise its own security position and be wanting to cross collateralise your PPOR with your IP and certainly isnt going to tell you how to structure your loans correctly.

Other little trick is lenders often do a quick credit search telling you that it wont do you any harm and that way they can confirm the deal and next thing you have fried your credit score.

Talk to a Mortgage Broker who is experienced in investment lending and get some Professional advice on how to move forward and that doesnt mean the local Aussie / Mortgage Choice Broker who is a plumber by day and a mortgage expert at night.

Cheers

Yours in Finance

http://www.propertymeeting.com.au/

Here is something that should get you started. I am pretty new to the whole thing myself but I have picked up a few good contacts via this monthly meeting

Not Richard but what Richard is talking about is often people go into a bank and innocently ask how much can I borrow?

During conversation bank asks how about we get a pre-approval to make sure these numbers are correct?

You says – 'Why not'

Bank submits all of your details and there is a hit on your credit record.

Make too many of these enquiries without getting the loan and your credit record looks decidedly sick. So many applications and no-one has said yes. 

New bank looks at next application and thinks "there must be a problem with Prospector so we'll decline the application"

Notwithstanding Jamie's comments about doing all finance work remotely – some people need to see their broker. If you are such a person I can make a recommend for a Perth broker.

HI Jamie – Aww shucks.

Prospector – an addendum to my previous post.

A broker will be able to crunch your numbers using a fancy piece of software that they all have which also works out which bank is best for you. Just make sure you don't get to pre-approval stage yet.

So much to learn.

Key point is start slowly – you don't have to own an IP by Friday.

Agree with all here.

Whilst I’ve had the fortune (and in all honesty, LUCK) during my first property purchase to apply with just one lender and have that lender approved, many new/young investors do get stung by this.

I’ve even had my lender, after pre-approving me, and then me saying ‘Actually, I might look at some other lender deals first’, ‘kindly’ remind me that I should not go and get pre-approvals with other lenders if I’m already out-to-market with him (effectively working his magic to ‘guarantee’ I’ll go with them!)

The process Derek recommends via use of a mortgage broker’s software is a good one. Remember, mortgage brokers work ‘for free’ to their clients (instead, taking a small cut of the deal with which ever lender you end up with).

Also can’t stress and agree enough that only make the pre-approval with the shortlisted lender you actually want to go with. If successful, you then need to act/work very quickly. This is easier for folks who have office jobs (or jobs where they are in front of a computer all day), because these days, most ‘processes’ within the purchase process can occur online/via email. Harder for those working outdoors/Not in front of a computer 9-5, as they have to do all of the work outside of 9-5 hours.