Hi everyone,
First post...so here goes. I've been lurking on these forums for a little while now, reading, learning, being encouraged by all the generous members ideas thoughts and comments. Thank you.
A bit of background. Just over a year ago when our first daughter was born (second due in Dec 07) we found a Financial Planner to get things in order for us. We got the insurances sorted, super on track and , and a small managed fund set up for our daughter. The arrangement with the FP is that they have an annual fee of $2500, and any commissions they receive reduce that $2500 amount. If the commissions exceed the fee, they start paying us money. So we figured it was fair - they were unlikely to recommend something that made them money...since they had a cap on what they could receive.
Recently I received a $20k pay rise which meant we suddenly had an increase in disposable income. I asked the FP what we should be doing with this (bearing in mind we'd told him we'd like to start a property portfolio). He told us to put it into a high interest account/offset and he'll talk to us about it in 6 months time at our next review. I didn't want to wait 6 months so I thought I'd go and see a FP at the ANZ where up until recently our PPOR mortgage was (moved it to ANZ One Direct a few months ago for a better rate). I had an appointment at the new Investment and Margin Lending on Collins St in Melbourne. They said they can show me how to put in place a structure which will allow me to purchase one or more IPs now, as well as a small geared Share Portfolio. The aim was to purchase high growth IPs, hold on to them for six or so years, then sell them to pay off the PPOR (or keep them if our plans had changed by that time).
However, in order to do that I was required to move my PPOR mortgage back to the ANZ. Why?, I can only presume it means more business for them. I know ANZ One Direct will allow access to the equity in my PPOR so I don't need to move my loan back to the ANZ to move forward building a property portfolio. I do like the idea that there's someone who will 'hold your hand' along the way though. Someone who can show you how to structure the cash flow, minimise our tax by -ve gearing etc.
I did point out that I'm not too happy with ANZ holding all my loans and the issues around that. They told me not to worry since cross collaterisation was a thing of the past since the Uniform Consumer Credit Code Legislation came in. What do you make of that?
So at the moment, I've got my FP who says wait until December, and ANZ who say we can do everything but you have to move your loan back. I'm stuck in the middle thinking we can do this ourselves without these guys.
Is this a case of "just do it", make an appointment with a Mortgage Broker, get stuck in and learn from experience?
Thanks in advance for any comments, inspiration or any general direction!
Cheers,
First post...so here goes. I've been lurking on these forums for a little while now, reading, learning, being encouraged by all the generous members ideas thoughts and comments. Thank you.
A bit of background. Just over a year ago when our first daughter was born (second due in Dec 07) we found a Financial Planner to get things in order for us. We got the insurances sorted, super on track and , and a small managed fund set up for our daughter. The arrangement with the FP is that they have an annual fee of $2500, and any commissions they receive reduce that $2500 amount. If the commissions exceed the fee, they start paying us money. So we figured it was fair - they were unlikely to recommend something that made them money...since they had a cap on what they could receive.
Recently I received a $20k pay rise which meant we suddenly had an increase in disposable income. I asked the FP what we should be doing with this (bearing in mind we'd told him we'd like to start a property portfolio). He told us to put it into a high interest account/offset and he'll talk to us about it in 6 months time at our next review. I didn't want to wait 6 months so I thought I'd go and see a FP at the ANZ where up until recently our PPOR mortgage was (moved it to ANZ One Direct a few months ago for a better rate). I had an appointment at the new Investment and Margin Lending on Collins St in Melbourne. They said they can show me how to put in place a structure which will allow me to purchase one or more IPs now, as well as a small geared Share Portfolio. The aim was to purchase high growth IPs, hold on to them for six or so years, then sell them to pay off the PPOR (or keep them if our plans had changed by that time).
However, in order to do that I was required to move my PPOR mortgage back to the ANZ. Why?, I can only presume it means more business for them. I know ANZ One Direct will allow access to the equity in my PPOR so I don't need to move my loan back to the ANZ to move forward building a property portfolio. I do like the idea that there's someone who will 'hold your hand' along the way though. Someone who can show you how to structure the cash flow, minimise our tax by -ve gearing etc.
I did point out that I'm not too happy with ANZ holding all my loans and the issues around that. They told me not to worry since cross collaterisation was a thing of the past since the Uniform Consumer Credit Code Legislation came in. What do you make of that?
So at the moment, I've got my FP who says wait until December, and ANZ who say we can do everything but you have to move your loan back. I'm stuck in the middle thinking we can do this ourselves without these guys.
Is this a case of "just do it", make an appointment with a Mortgage Broker, get stuck in and learn from experience?
Thanks in advance for any comments, inspiration or any general direction!
Cheers,