Are You
Looking To Invest in Property? If You Are Then
Here's Some Solid Property Investing Advice From Positive
Cash Flow Property Expert Paul Zalitis
5
Things The Banks Don't Want You To Know About Your
Investment Property
Mortgages
Banks and
insurance companies have been often accused of hiding relevant
information from a deserving public. These accusations are not altogether baseless
and malicious. In fact, the financial markets as a whole
have proved in the recent past that they have an inherent
tendency to present half truths especially if and when it suits
their stance. This is what can more accurately be described as
a confidence crisis or a moral crisis.
In Australia, America and most of Europe,
there is an ongoing debate on the standard form contracts that
are “imposed” by banks on customers. All embody the wrongful presumption that
acceptance by the public signifies the fulfillment of all the
necessary elements of the law of contract.
Let us, take a look at the issues
that the banks don’t want you to know about when it
comes to your investment property with 6 piece of
solid property investing advice
...
# Security Over
Property and its
Realization
Foreclosures have hit nearly every part of
the world and Australia is no
exception.
Peter Overton, a real
estate commentator while on a trip in SpanosPark and Brookside Estates observed
that the mortgage meltdown will hit and hit hard. The
question to ask oneself is whether people fully
understand the impact of losing their investment property
at the time when they are buying.
While a
clear answer may not be clear cut to a most people at this
point, most bankers know a lot about it but are reluctant to
make their knowledge public. With their desire to gain
more, banks have failed to inform people about the effective
measures they can implement against potential
defaulters.
# High Interest
Rates Applied to
Mortgages
With the
exception of reverse mortgages which are for the protection of
senior members of the society, all other mortgages attract very
high interest rates. Banks have successfully camouflaged these
rates through splitting or clustering them in miscellaneous
provisions and sub provisions. The effect of this has been a financial
crisis that has hit the whole banking industry and is
threatening to tear the global
economy.
You may be aware that this
will be traced to sub prime mortgages.
# Shifting of
Professional Fees to
Borrowers
The cost of
completing property transactions is usually very
high.
Banking institutions have
effectively designed means of transferring the costs that
should otherwise have been borne by them to unsuspecting
consumers.
Costs that you can look out for
include legal, quantity survey and accountancy
services.
When these are transferred to the
borrowers they limit their ability to maximize their
investment.
# Selling of Defective
Property
When
selling foreclosed property, bankers may never inform the
purchasers of the weaknesses that will be part of the
property.
For example, banks have a higher
ability to determine the risks attached to a particular
property, especially liquidity risk. A
bank will never disclose such information to buyers since it
will jeopardize its chance of realizing the
security.
It is in your interest to conduct
a personal due diligence search in order for you to determine
the true market value of the property on
auction.
#
The Myth
of 100% Financed
Mortgages
Just like
interest rates which will usually have exaggerated hidden
costs, banks that offer a total financing of your property
investment may have more than meets the
eye.
It is advisable to go
through the details of such proposals before committing
your funds to a certain investment
property.
# Our Property
Investing Advice
Conclusion
The role
played by banks cannot be under stated because to be fair most
large scale and even small scale property investments are bank
funded.
However, it will be in your best
interest to deal with a bank that has the best mortgage package
for your requirements, just make sure you read the fine
print.
Who else
wants more property
investing advice and positive cash flow property
investing tips? Join hundreds of other successful
investors who have already read Paul Zalitis' new report
"Six Figure Positive Cash Flow
Secrets" - Get your copy
here for FREE today by clicking this link Property Investing
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