For the mortgage brokers

[Francesca C]

Hi Alexlee

I dont take the opinions of where I buy from anyone, not my broker or my accountant.

I feel its wise to surround yourself with "like minded" people.

It is good to go to an accountant that specialises in property investors (if that is your main goal)

 

[alexlee]

Isnt that like saying your accountant doesnt need particular property investing experience either or the people you surround yourself dont matter either.

I feel its wise to surround yourself with "like minded" people.

It is good to go to an accountant that specialises in property investors (if that is your main goal)

An accountant who is experienced with property investors and knows property-related tax stuff, yes. I just don't need an accountant who actually has opinions on my investments. Nor do I necessarily need an accountant who actively invests him/herself. I don't ask a doctor whether they've had my disease themselves: they just need to have experience in treating it.
Alex

 

[Francesca C]

You make me laugh, I love your posts Alexlee

 

[dantheman]

Hey Dan

Isnt that like saying your accountant doesnt need particular property investing experience either or the people you surround yourself dont matter either.

Not at all - I'm not bringing up the issue of property investing experience. All I'm trying to say is that brokers don't need to be physically near the IP that is to be purchased. We're not going to be out there inspecting the prospective purchase to validate the client's investment.

I understand what you're saying though, and it's a good philosophy -professionals should be supportive of your goals and understand the methods that you are using to achieve them. I remember when I used to do lots of weight training and had an injury, I saw my doctor for a strained muscle. Instead of simply advising on the muscle problem, he started advising me to stop lifting weights and that jogging (his preferred sport) was better for me. Obviously I didn't see that doctor again

Alex is right also - a broker needs to know how to deal with property investors, not necessarily be an investor themselves. Having said that, being a property investor is one way that a broker can know how to help other property investors.

Cheers

Dan

 

[Bradsdad]

+1 for Dan & Alex.

Not wanting to have a go at people who multi task as I'm sure there are a few good ones out there but I see a MB just as that a MB and concentrates on finance. An accountant is an accountant and concentrates on that field. A lawyer concentrates on law.
Whilst most MB have an understanding of each, the majority arern't licenced/allowed to give advice on these other matters. This is one of the worst mistakes a MB can make. For example, as a MB I give client A tax advice about a particular tax law that was current when I learned of it. That particular law just happned to have been changed by the ATO 2 weeks ago. As a MB I'm not advised of such changes. For me to keep abreast of changes in fields such as tax/accounting and law I wouldn't be able to keep abreast of changes in the industry I work it...FINANCE. Before anyone brings up the arguement that if I was an property investor i would know of such laws, I can assure you that there are many things that don't affect me as an investor that may affect the peron next door.

In regards to the MB being an investor themselves, well it could help but what's to say that particular MB has his/her structure right? I would be willing to bet my bottom dollar (don't get too excited as with mortgages, wife, kids and dawg I have litte ) that not all MB's in SS have the same structure.
The key is to stucture your finance to meet your own particular needs/objectives. Whether it be Ip's or owner occs, this is the role of a MB.

Anyway, as per usual, these are just my opinions as a mere mortal.

 

[Francesca C]

I would never ask my broker for investing advice or to help me find a property.

I think it all comes down to personal preferenence..

 

[Adelaide Invest]

Reply to your Question

Hi, My name is Chris and I am a principal of Wizard Home Loans.

The location of your investment property is not that important when it comes to picking a mortgage broker. Finding someone who can structure your finance is more important.

Chris

Is it better to use a mortgage broker close to home in the local area,
or better to use a broker in the area of the IP,
or it doesn't really matter which state we do business in?

just asking as I'm preparing to purchase my second IP and will be seeking finance in a couple of weeks.

 

[Lizard King]

Integrity of a MB

Hi Folks

I have recently used a MB for the purchase of my daughters First Home (Relocated from Canberra).

I was a tad frustrated with his slackness as to keeping me innformed what was going on - the rates we were locking, time/turnaround, docs to sign - and most important, the Financial Agreement.

This was a new experience and hence I was not familiar as to what he was to deliver, how far I should push.

I got fed up of calling, e-mailing. leaving messages and tracked his company State Manager via Google. Got in touch and said the service sucked.

MB did not like it, but I had warned him on Day One I was not the kinda guy to be messed around with.

The State Manager also said I should have been given the Financial Agreement upfront.

Couple of pointers here. I got his name via a friend who used a similar service for his sons PPOR - and he kept recommending properties in a suburb where HE had invested - and we were not hung-ho about the suburb.

He also said he was one of the few MB's that declared upfront what his commission was. I know that this is a legal requirement of ALL MB's, so he was not the cat's whisker he made himself out to be.

Must admit though all this occured beore Christmas and it could have just been a bad time.

All docs arrived along with Santa.

Lizard King

 

[alexlee]

Couple of pointers here. I got his name via a friend who used a similar service for his sons PPOR - and he kept recommending properties in a suburb where HE had invested - and we were not hung-ho about the suburb.

He also said he was one of the few MB's that declared upfront what his commission was. I know that this is a legal requirement of ALL MB's, so he was not the cat's whisker he made himself out to be.

So why did you use this guy anyway?
Alex

 

[dantheman]

Hi Lizard King,

Sorry to hear you found one of the bad eggs..

I got fed up of calling, e-mailing. leaving messages and tracked his company State Manager via Google. Got in touch and said the service sucked.

If your broker is good, you should rarely need to call. They should be calling you! I love customers who keep in touch, I sometimes have problems keeping people informed because they don't return phone calls and are difficult to contact, but I guess not everybody gives their mortgage the same priority.

He also said he was one of the few MB's that declared upfront what his commission was. I know that this is a legal requirement of ALL MB's, so he was not the cat's whisker he made himself out to be.

Must admit though all this occured beore Christmas and it could have just been a bad time.

All docs arrived along with Santa.

Lizard King

Christmas is a very slow time, most Solicitors close up for several weeks and lots of lender staff can be on leave. Even so, your broker should tell you what's going on or at least return the calls. Rates locking - that is definitely something that you should know about!

Commission must be declared by all brokers, and you must receive a copy of the finance broker agreement also.

Great customer service is the norm in this industry, if your broker hasn't provided that I can't see how he'll survice the market downturn.

Dan

 

[Lizard King]

Service Delivery Levels

Hi Dan and Alex Lee

I agree that courtesy and communication are essential skills to conduct 'good' business. It is, at least to me.

I have been renting a couple of our units out this week and as expected, when a tenanat makes and appointment to inspect the unit, but gets a property to move in the meantime - I do not always get a courtesy call saying they have found something or changed their minds or think the rent is too much, etc.

But then, I do not expect professionals to act this way.

I used this MB, because he could get a good loan size and interest rate. Those were criteria that were important to our Offer. Good communication was considered a done-thing.

Do you think I should have not compromised a service (delivery) level for the sake of a % here and a $ there?

When you shop for T-Bone Steak do you just go to the store down the road and buy it on Specials or do you go to your local butcher and get the cut you want?

Lizard King

 

[dantheman]

Do you think I should have not compromised a service (delivery) level for the sake of a % here and a $ there?

If he didn't get your rate lock in time you could lose a % and a $
Even though it seems it all went ok, I'd feel better as a customer if I knew what was going on..

Dan

 

[Lizard King]

Rate Lock

Hi Dan

Did get the rate lock in. Cost $450. I asked for it.

Cheers,

Lizard King