Misconceptions of Property Investors

Discussion in 'Property Information Resources & Tools' started by MyPropertyPro, 7th Jan, 2017.

Join Australia's most dynamic and respected property investment community
  1. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    I not saying going direct to a bank won't get you the same deal as a broker, but the investor will have to go bank to bank to bank to do all the ground work themselves. I don't think there's any deal you can get over the line with your local bank that a good broker won't get over the line. I stand to be corrected of course, and it's probably unable to be quantified, but I would actually be interested to see an example if you're aware of one?

    The bank is interested in numbers, not a personal relationship. The broker is simply representing you across a number of lenders, not once specific one. If you have a great lending history with a particular bank your broker still can and will leverage that history to your advantage. Remember, they should have also estabished 'back end' B2B relationships with lenders' BDMs that can also make a big difference.
     
    Last edited: 8th Jan, 2017
    Perthguy and MTR like this.
  2. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    Generally speaking, building insurance does not include contents insurance as they are two distinct products, however products exist where you can add contents insurance to building insurance under one policy. One usually obtains building insurance and then landlord insurance which includes 'landlord contents' as part of the overall product (plus rent cover, etc). Contents insurance for tenants/occupiers is different to the contents insurance for landlords.
     
    Last edited: 8th Jan, 2017
  3. Perthguy

    Perthguy Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    11,767
    Location:
    Perth
    It wasn't about going direct or not. We all know savvy investors get deals direct from lenders. The issue is people just starting out walking into their local branch because they have been dealing with them for years and think the manager will look after them and give them a good deal. They are too new to know about shopping around or good deals and better rates. My mate at work on 5.45% didn't even know she was being ripped off. That is an issue
     
    MyPropertyPro likes this.
  4. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,701
    Location:
    Melbourne
    Let's be frank though, this is for EVERYTHING!!! People assume because they have a relationship with someone who is an accountant, a carpenter, a solicitor, heck even a barista! Doesn't mean they make good bloody coffee.

    Seek out the best in any industry and use them! I know if I ever need specific taxation advise regarding property, I would hit up @Terry_w, not one of my 5 mates who are simply accountants.
     
  5. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    Spot on!
     
    bread_boy likes this.
  6. Zoolander

    Zoolander Well-Known Member

    Joined:
    15th Dec, 2016
    Posts:
    668
    Location:
    Sydney
    it's a good learning experience, making mistakes ideally fast and early. I made that mistake too with getting loans with my local branch without looking at rates (one was fixed for years at 5.7% when everyone else was getting 3-4.)

    Getting advice from others is great but I find the lesson is cemented when you experience it firsthand.
     
    bread_boy and Perthguy like this.
  7. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,572
    Location:
    Sid en e - olympic city
    Accountant has a large share in kitchen and bathroom company :):D

    It does not surprise me, I have heard all sorts of stupid reasons as to why people think losing money is a good thing, much is basic ignorance & many advisors do not care that much as it is not coming from their pocket, maybe the client was real annoying....lol
     
    Whitecat likes this.
  8. Perthguy

    Perthguy Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    11,767
    Location:
    Perth
    Yep. I made a mistake of paying down a loan that I could have kept. I thought I would be able to borrow that amount again. I was wrong and I can't. I will never forget that one