Best estate for CG and Cashflow in Brisbane and surrounds.
- Thread starter ej89
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Do you use RPData Premium ?
---Quote (Originally by Mark Coburn)---
But when interest rates rise, I'm planning that my clients won't be forced sellers.
I'm not paid to be adventurous with my clients money, I'm paid to give them good advice. If you think i'm being conservative, you should speak to their accounts and financial planners.
---End Quote---
Originally Posted by GreyGhost
Again, my point is that you cannot tar all investors with the same brush. What is good for one may not be for the other.
If your policy is to advise on 80% lends then so be it, but understanding of client's situation, serviceability and end goal all come into play when determining the above. I think it is pretty lax advise to advise otherwise.
GreyGhost, I am amazed at your lack of finance industry knowledge. Do you honestly think that I have no idea about what I am doing? I speak to many clients who think 60% debt is too high. I have clients with $5M in equity and $1M in debt and they think thats a lot. Do you really think I don't review each and every client's situation and act accordingly? SERIOUSLY?
If you are so keen for everybody to be borrowing over 80% then why don't you write to APRA and ask them to change there most resent lending directive to the banks?
I case you haven't heard; banks aren't lending over 80% anymore, end of discussion. So within a week NO BODY will be able to borrow over 80% to buy an investment property without the use of equity from a second security. If that's not a PPoR you won't be borrowing over 80% on that one ether. So that is what APRA thinks of your borrowing advice.
But when interest rates rise, I'm planning that my clients won't be forced sellers.
I'm not paid to be adventurous with my clients money, I'm paid to give them good advice. If you think i'm being conservative, you should speak to their accounts and financial planners.
---End Quote---
Originally Posted by GreyGhost
Again, my point is that you cannot tar all investors with the same brush. What is good for one may not be for the other.
If your policy is to advise on 80% lends then so be it, but understanding of client's situation, serviceability and end goal all come into play when determining the above. I think it is pretty lax advise to advise otherwise.
GreyGhost, I am amazed at your lack of finance industry knowledge. Do you honestly think that I have no idea about what I am doing? I speak to many clients who think 60% debt is too high. I have clients with $5M in equity and $1M in debt and they think thats a lot. Do you really think I don't review each and every client's situation and act accordingly? SERIOUSLY?
If you are so keen for everybody to be borrowing over 80% then why don't you write to APRA and ask them to change there most resent lending directive to the banks?
I case you haven't heard; banks aren't lending over 80% anymore, end of discussion. So within a week NO BODY will be able to borrow over 80% to buy an investment property without the use of equity from a second security. If that's not a PPoR you won't be borrowing over 80% on that one ether. So that is what APRA thinks of your borrowing advice.
That's no true at all.
http://somersoft.com/forums/showpost.php?p=1319474&postcount=299
I suggest you read the rest of that thread and talk to some of the intelligent brokers on this site so you can advise your clients correctly...
I may be wrong about nobody, but my guess is the pressure will be on all the banks to tighten their lending shortly.
But If I called you an hour ago as your client and asked you what I should do you would have told me "no lend over 80%" That's a whopping fundamental error for an "investment advisor" to make.
How much do you charge? lol
My understanding is different from yours.
If you have any link to the new APRA regulations/recommendations/suggestions then I'd be keen to see them.
Biz, I would have told you to call your mortgage broker, I'm a buyer's agency. We give property investment advice not lending advice. 95% of the clients we see are borrowing with CBA. They have stopped according to the updates we have been given by the brokers working with our clients.
keithj, This all I know on the subject:
http://www.skynews.com.au/business/...6/stricter-loans-to-cool-property-market.html
http://www.propertyobserver.com.au/...il&utm_term=0_a523fbfccb-5622af529f-245293349
Mark,
THanks for sharing the sample purchasing data above:
Total Purchase Price $1,740,000
Total Current Valuation $1,957,000
Total Approx.Capital Growth $217,000 (that's sweet for a two years span of investment period)
However:
How come you suggest the client to bought multiple IP in GRIFFIN, QLD 4503 isn't that danger to put too many eggs in one basket ?
This website: http://www.realestate.com.au/neighbourhoods/griffin-4503-qld says that the average price for 4 bedders is $438,750 not $484,000 as per your indication above. Where'd you get that high valuation price from ?
Because when using the realistic data from RPData the Capital growth is just $35,250 not $217,000 which is too good to be true.
1. I never said for anyone to borrow over 80%. I said in certain circumstances it is justified.
2. I never said for them not to pay down debt if they do borrow more than 80%. In fact I do believe in risk mitigation and minimisation. So im not sure how you alluded to that??
3. I find it difficult to interpret that I have a lack of financial knowledge because I simply said LMI lends in certain circumstances may be beneficial to SOME investors and to be treated on a case by case basis. You may do that with your clients, however it was not implied like that on your post.
For the benefit of other more junior members on the forum I wanted to raise the point of my original comment that you cannot tar all investors with the same brush. What is good for one may not be for the other....
Just as your original comment regarding LMI was over generalised you have seemed to generalise all of my financial knowledge based on your misinterpretation of my comment...
4. 80% LVR for all banks?
5. Couldn't care less what APRA think of my advice, 2 young medical professionals on over 100K each with no other debt, renting, minimal deposit, wanting to get into a hot market, ability to pay down debt quickly. They should wait another 6-8 months to buy if they have found a good deal now?
Don't know if it adds anything to my post or not, but I am a Chartered Accountant, Business Advisor, speaker, lover of property and qualified mortgage broker - part time.. But what would I know about those number thingies....
So what was the post mate ;-)
lol I accidentally quoted someone and didn't write anything..
Nah I don't use RPdata premium.. I use APM. Wanna give me access to yours?
You SERIOUSLY have no idea, nor does your brokers. CBA actually has still yet to make any changes besides some small tweaks around pricing for investors. CBA was previously seen to be out of the lights for APRA, but now that's not looking likely and could see them make some changes in the coming months. Now let's stop and see what's changes have happened, you're talking 90% max LVRs not 80% in most cases. >95% lends for investors make up a extremely small portion
Please get your facts right before you continue to embarrass yourself further.
I wonder how and where did you get that much high valuation Mark ?
Those properties are not all one buyer's acquisitions.
The values come from bank vals on completed properties plus the recent sale I listed. I gave the full address if you want to cross check the sale price.
Thank you for comments, they have been noted.
Make sense, so typically Buyers Agent should only assist in buying exisiting property for the potential development ?
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