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YIP mag- 3 things to avoid

Discussion in 'Property Finance' started by beachgurl, 11th Apr, 2016.

  1. beachgurl

    beachgurl Well-Known Member

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    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?
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    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.
     
  3. jpcashflow

    jpcashflow Well-Known Member Business Member

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

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    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.
     
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  5. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    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.
     
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  6. Leo2413

    Leo2413 Well-Known Member Premium Member

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    @Terry_w there's a new property mag out..???:eek::D
     
  7. Leo2413

    Leo2413 Well-Known Member Premium Member

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

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    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.
     
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  9. sash

    sash Well-Known Member

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    Yep agree with you assessment.

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

    TMNT Well-Known Member

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

    Marty McDonald Mortgage broker Business Member

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    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.
     
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  12. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Its amazing what you see at these sessions!
     
  13. Scott No Mates

    Scott No Mates Well-Known Member

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    A bit hard in inner Sydney Jess
     
  14. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    @Scott No Mates
    "Generally speaking" ;)

    Most resi investors seem to buy in the $3-$500k bracket in my experience.
     
  15. Scott No Mates

    Scott No Mates Well-Known Member

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    Last edited: 12th Apr, 2016
  16. albanga

    albanga Well-Known Member

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    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.
     
  17. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    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)
     
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  18. albanga

    albanga Well-Known Member

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    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 :)
     
  19. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    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.