YIP mag- 3 things to avoid

The latest YIP mag has an article on "must-haves" and "avoid like the plague" to select a broker. One of the "avoids" is that it is a total misconception that you need to have your loans with different banks. And that the more you borrow with the one lender the more bargaining power you have.

I like to diversify my lenders and suggest the same to my clients.

For the brokers out there,do I fall under the "avoid like the plague" brokers or do you think this is one strong opinion that you don't agree with?

 

The problem with that is that each lender has a limit at which point they'll say No Thanks and you'll move onto the next. You want to stop short of that limit so that you can still do equity top ups there.

So, in my view, the mag has made a bit of a 'nothing point' here.

 

More bargaining power? Banks have limits and staying with the one lender is to risky.

 

Sounds like YIG mag is one of the things to avoid.

A strategy I use is to get all loans with one bank so as to get th max discounts and then to refinance some away from that bank to spread risk. The extra discounts are for the life of the loan so they won't increase the rate as some loans move.

 

Sounds like they've been getting advice from Ms Lomas. It's fine to have more than one property with your lenders, but a large portfolio is unwise. I probably wouldn't do more than 3/4 properties or $1.2M (ish) worth of loans generally speaking.

 

@Terry_w there's a new property mag out..???

 

Sometimes I seriously wonder where they get their information from and the 'expert' writing this stuff, what wealth have they actually built from property....

 

It's amazing what you can achieve in spite of poor advice sometimes - you don't find out it was poor advice until something happens, for eg, you retire and find the whole premise of your retirement strategy won't work b/c you're x-coll and the lender wants to pay out all your loans with funds you had earmarked for living off.

Things can go swimmingly for decades only to fall over at the last minute.

 

Yep agree with you assessment.

You would not want to find out you have issues down the track.

 

TMNTs what to avoid: Magazines, other then for a bit of inspiration and a few general pointers

 

That and the majority of brokers out there....Was at an accreditation session a few months ago. The lender in question (Newcastle Perm) prefers not to X-Coll and up until a few years ago they wouldn't do it at all. A group of brokers there scoffed at this and were all adamant that there was no point in not cross collateralising because the lenders all have set off clauses anyway and it made it easier to finance. They didn't get it.

 

Its amazing what you see at these sessions!

 

A bit hard in inner Sydney Jess

 

@Scott No Mates
"Generally speaking"

Most resi investors seem to buy in the $3-$500k bracket in my experience.

 

@Jess Peletier - Ooops - I thought I was doing something wrong

 

The sooner the brokers on here team up, record some actual testimonials over the devastation it can cause (@Terry_w has provided some beauties in the past) then to most it will be nothing more than some scare talk that will never eventuate.

I just checked and the domain www.avoidxcoll.com.au is available.

 

I have spoken to at least 2 forum members whose lives were significantly and adversely effect from crossing. (and one forum member whose life was transformed by cross dressing)

 

And do you believe these people would openly talk about this?
If so get them to tell there storey and next time a broker snickers, point them towards the website

 

no, i don't think so. I told them to post their story on here (or somersoft) but they didn't. One story is half on ss though.