ANZ link to scam property in Queensland

[WebBoard]

From: Anonymous


Noticed this on the NEWS website today:

http://www.news.com.au/common/story_page/0,4057,2621390%255E462,00.html

The author of this article has mentioned one Gold Coast Marketeer, but has failed to mention the ever-popular Brisbane based organisations who have used Queensland State Home Loans and Origin for many years and probably still do.

It appears that at least one of these groups has recently become a mortgage originator themselves (I don't know who is backing their loans...I suspect that it is probably Westpac). I wonder if they started their own finance arm (Club Loans) as a result of not being able to get satisfactory finance from their existing sources?

If you feel that you must use one of these Clubs, Groups or Companies arrange your own finance and get an independent valuation.

Sorry about the anonymous posting...but last time I mentioned my experiences with these guys I got threatening emails for weeks.

 

[Rolf Latham]

Reply: 1
From: Rolf Latham


Hi Anon

Good point about arranging your own finance, although trust your gut feel I say, not all are baddies.

Truth be known though you can set up almost any deal so that the lender will not sniff that it is overvalued if that is the orginators' intent. Most orginators have approval at their own level, so the wholesale funder is rarely involved in the approvals process.

A lot of the majors do NOT do valuations where there is not mortgage insurance involved. Commonly these deals are set up on a cross-collaterised basis (using your home as security), one of the many reasons that I do not like this practice.

Ta

Rolf

 

[WebBoard]

Reply: 1.1
From: Anonymous


Dear Anon,
I have never used Origin or ANZ. However 50% of my deals fall over due to nervous valuers undervaluing the properties which 90% of the time, when revalued, are found to be on valuation. Many valuers are running scared and this latest drama with ANZ will have everyone running scared and of course this will lead to unfair undervaluing. Should this continue I will leave the Brisbane market and back to Sydney but cautiously as I believe is suffering the reverse - inflated valuations.

Re the Club loans with that other company that says it is a 'club' but is really just another marketing company. Your right, they have been having a torrid time with valuations with rumours the Investors Club 'president for life', a Mr Kevin Young was suing a valuation company.

Whilst on the Investors Club. Yes they charge >$11,000 per most deals. When this fee is levied for a $140,000 property it must have negative consequences for the valuation. The new QLD PAMBA ? Act should sort this out though.
My gripe with them is the fact they claim all these 'free' services when they actually get $11,000 and they say they are a 'club' when this in not true. Also this retire in 7 years is crap as well. Mr Young claims to have done it yet he still keeps working. If his 'system' was so good why did he go bankrupt in the early 80's (public record) Surely he was retired then ? All his/their clients since 1995 would have fared much better investing in shares or Sydney or Melbourne rather than buying into sad old Brisbane which promised so much but delivered VERY LITTLE !

The scammers, they are easily identified (most usually flog Gold Coast hi rise) they should be gaoled for fraud.

 

[WebBoard]

Reply: 1.2
From: James Johnson


Hey Rolf,
I'm a bit confused about how you're defining xcollaterisation. You mentioned in a previous post that it had something to do with withdrawing equity from home or IP and using that as deposit to buy new IP. Isn't this what Peter Spann and other assorted gurus tell you to go forth and do? I'm confused- help!
Cheers

Jimmy

 

[Rolf Latham]

Reply: 1.2.1
From: Rolf Latham


Hi James

Cross Collateralisation simply involves using one security to secure another, or to use more than one property to secure one loan structure.

Witdrawing equity to put into another property is the opposite - this makes the new purchase a stand alone without ties to any other security.

Ta

Rolf

 

[WebBoard]

Reply: 2
From: Anonymous


Hi,
How exactly is it linked to property scams? and what has happened to the Marketers? is there some sort of under the table goings on?
B

 

[WebBoard]

Reply: 2.1
From: Anonymous



i belive there was also a related story about this a week prior to this article, about a company called Stamford Lyon, and that was proceeded by 2x Today Tonight investigations airing in Sydney, about the same, i'm confused as to how this happens, could anyone explain to me why what they are doing is so bad? I have a friend who has purchased property through them and they have been delighted, apologies for the anon posting, i don't want to tread on anyones toes

 

[Rolf Latham]

Reply: 2.1.1
From: Rolf Latham


Hiya

All about horses for courses - do your own research and you will see that not all marketing orgs are sharks. Indeed there are many that are quite OK.

Remember though that you get NOTHING for NOTHING and these services will cost someone

Just double check any area that could cost you like valuations, finance and structures


Ta


Rolf