1st visit with mb - I'm excited

[Rixter]

Kim, yes you have to factor management fees, insurances, repairs/maint, council rates, water rates, strata fees if applicable etc etc.

Dont forget that because of your negative cashflow you also have to factor back in tax deductions (both cash & if applicable non-cash via depreciation) which will increase your cashflow and decrease your out of pocket holding costs slightly.

Hope this helps.

 

[Alex P Keaton]

yep, i know. just looking at the basic repayment versus rental income difference at this point in time.

 

[Alex P Keaton]

Hi Kim

What mix or splits are you looking at, and is any part of the loan Principal & Interest?

Hi Kristine

Its an IO Loan

I attached the spreadsheet.

Its 60% Fixed at 6.99% and 40% SV at 5.53%

Maybe it would be better to go with 100% SV. I dunno.

 

[Alex P Keaton]

This example is based on 60% fixed at 6.99%

Loan - $237, 500

Repayments
Monthly $ 1291

Rental Income
Monthly $800

$ 491 Monthly shortfall

Looks a lot better if its 100% SV

100% SV

Loan - $237, 500

Repayments
Monthly $1094

Rental Income
Monthly $800

$294 Monthly shortfall


I have used a conservative amount of $200 a week rental income for a $220,000 property.

 

[Alex P Keaton]

Wow this 1 bedroom Woodall Street Dianella only came online 3 or 4 days ago and is already under offer!! I'm curious as to what offer they put in. I'll wait a while then ring and ask the agent

 

[Rolf Latham]

last sold for 38 000 in 1998

Good gains on that one, though in 1989 it sold for 44 k

ta
rolf

 

[Alex P Keaton]

hey Rolf im looking at the old listing site
Woodall Street, Dianella old listing site

Is there a way I can find out who were the selling agents for the properties listed. From memory 6 or 12 months ago I remember looking at one of these units in Woodall street but I dont recall it ever selling. How do I go about finding out if perhaps an owner on that list might still want to sell their property.

 

[Alex P Keaton]

This morning when i saw the mb for the 2nd time i started having 2nd thoughts about going with them.

At the end when she gave me the contract that I had to sign binding me to her company. I said I will have to go away and have a think about this. I did not sign anything * Alarm bells ringing *

She didnt mention in my first visit the fact that if I went with her there was a $450 fee to pay to go with them as mb on top of the commission that they get from the bank to do business with them.

So what I'll do is wait till Monday then ring her and tell her I have decided to leave it for a while and that I would like to come and collect all my documents. I have a right to get my documents back dont I?? I gave her my bank statements, payslips, ID and things like that. What if she wont give them back to me?


I will go and talk to the mb I did business with for my first property. I was comfortable with him.

 

[Rixter]

I have a right to get my documents back dont I?? I gave her my bank statements, payslips, ID and things like that. What if she wont give them back to me?


I will go and talk to the mb I did business with for my first property. I was comfortable with him.

Yes they are lawfully your personal documents and she has to give them back.


Why did you go to another mb if you were comfortable with your first mb?

 

[Alex P Keaton]

Yes they are lawfully your personal documents and she has to give them back.


Why did you go to another mb if you were comfortable with your first mb?

cool, ok i'll get em back tomorrow


um, it was handy....... near work, was curious to see if I could get a loan, if I had enough equity.


Anyway....... I am going to ring Lex now

 

[Alex P Keaton]

lunch break is over

 

[Rixter]

Anyway....... I am going to ring Lex now

Lex Thomson?

 

[Alex P Keaton]

Lex Thomson?

yeah

......

 

[Rolf Latham]

Get used to the fee for service thing.......................it will become mainstream real soon.

ta
rolf

 

[Alex P Keaton]

Get used to the fee for service thing.......................it will become mainstream real soon.

ta
rolf

Yeah thats what she was saying. But $450 sounds a bit excessive dont you think?

 

[Rixter]

Yeah thats what she was saying. But $450 sounds a bit excessive dont you think?

Kim, whats Lex say?

 

[Alex P Keaton]

Kim, whats Lex say?

I havent been able to get him on the phone yet. I'm wandering though if he'll say that I should wait and that its too early to buy, too risky. The thing is... I'm ok with going to LVR of 83% I have $30 K buffer I can call upon. I'd only need to cover a bit of a shortfall. I hope he doesnt try to talk me out of it!! I know I can afford it.

 

[Rolf Latham]

Hiya

All need to set their own fee base.........I dont beieve 450 is excessive in most circumstances.

The upfront on a 200 k loan would barely cover costs, hence one either sucks it up and makes a few dollars on the trail, or charges a reasonable up front fee to make it work. 500 + gst would be about right.

If the broker runs from a home office without staff, then its a different numbers game altogether.

The client interaction is the least of the time and effort involved to get a deal to settle.

ta
rolf

 

[Alex P Keaton]

Hiya

All need to set their own fee base.........I dont beieve 450 is excessive in most circumstances.

The upfront on a 200 k loan would barely cover costs, hence one either sucks it up and makes a few dollars on the trail, or charges a reasonable up front fee to make it work. 500 + gst would be about right.

The client interaction is the least of the time and effort involved to get a deal to settle.

ta
rolf

hmmm im starting to have 2nd thoughts again. Maybe this mob arn't so bad.

 

[Alex P Keaton]

its just..... the contract looked scary. Its a legal contract. Maybe I could scan it, black out the important bits and see what you guys think