Category: Property Investment

By Michael Sterios

Becoming a mortgage broker and helping people with their home loans is one of the most intrinsically rewarding finance careers in Australia. In addition to the buzz of helping people buy their homes, successful brokers also enjoy a high income and the lifestyle it affords.

While the profession isn’t for everyone, mortgage brokers come from many different backgrounds. This is partly because the entry requirements into the profession are not as stringent as other careers, such as medicine or accounting, for which a university degree is required. There are, however, some entry requirements that must be met before an individual can begin a career as a mortgage broker, and there is also a requirement for ongoing professional development that must be maintained in order to remain qualified.

The minimum academic requirement that must be completed by any individual wishing to become a mortgage broker is the Certificate 4 in Financial Services (Finance/Mortgage lending FNS40804). This course is offered by many different institutions and can be conducted either face to face or by distance learning depending on the institution. Although distance learning is an option it is recommended that prospective brokers with no industry experience undergo the training in person. This will allow the student to ask questions of their instructor and receive extra attention on any concepts that are difficult to grasp.

Once the Certificate is completed the individual will be required to join an industry association. There are two options available; the MFAA (Mortgage and Finance Association of Australia) and the FBAA (Finance Brokers Association of Australia). The MFAA was previously called the MIAA. Brokers are only required to join one association and both require the Certificate 4 to be completed before joining. Additionally, there is Federal legislation currently being introduced that will make it a legal requirement for all mortgage brokers in Australia to complete the Certificate.

In addition to the minimum academic requirements it is recommended that prospective brokers contain several personal qualities that will help them succeed in the industry. A basic grasp of mathematics is required to accurately assess the suitability of the finance products that the broker will advise their clients on. A basic grasp of the English language is also required as legal documents are involved in property transactions.

As mortgage broking is essentially a sales job paying commissions, some sales experience is beneficial, although this can be learned from franchisors or mentors. It is also essential to be self-motivated and well organised, especially if conducting business in a self-employed capacity. It is likely that the mortgage broker will deal with multiple applications from several different clients at any one time so good organisational skills are a must to stay ahead of the game.

Once a broker has completed their initial training and gained some experience they will be required to complete further education. This is known as CPD (Continued Professional Development). Various training institutions offer courses that count towards CPD requirements. Some of these courses can also be used to gain new marketable skills such as the ability to offer clients commercial mortgages and other finance products.

*article also submitted at ezinearticles*

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Money buildup out of estate investment

by

Christoper Cominsky

It truly is a beneficial habit to always to put aside cash in the bank to build up saving and for disaster use. Then again what will come about to your hard earned wealth after many years. The amount of cash to procure a service or good will cost further more. In effect your wealth has become lesser then your hard earned wealth can be wiped out much earlier. The interest you\’ll gain out of your saving ordinarily might be insufficient to catch up with the inflation rate. Saving more, the more you lost. By the time you retire, you\’ll be blessed if the bank account be able to last you until the time you breathe your last breath. For nearly everyone of us, we haven\’t any choice, we ought to make investments to our capital wisely to gather saving and overcome the rate of inflation. If you happen to be lucky to gather adequate saving, you may well wish to invest in estate.

Choosing the best property will be instrumental to ensure that our wealth shall be put in good use and growing instead of thinning. All kind of investment vehicle includes risk and property investment is no exemption. Choose a property in an area which has excellent rental occupation and good rental return. Choosing of such property might be a place which has lots of workplaces, high-quality educational institutions along with services inside the vicinity.

A method to invest in property is to purchase a property with aim to sell it off within the near future to produce a pleasant profit. This method is helpful when price of property is moving up. Discover a property which is underpriced, after several month or years, the value of your property should have risen and it may be sold for gain. Nevertheless it is risky to speculate in property in such a manner. Ensure you own enough cash flow to tide over the bad time if you made a wrong decision. You could be required to hold the property and rent it out as an alternative.

Investing for a home for letting purpose is another type of property investment. This manner of investment decision can produce passive income and will be our goal. Lots of investors fancy this kind of investment. They like to keep properties for rental and hold them. The concern of such type of investment is that wealth accumulation is slower than acquiring and resell property. But this kind of investment is not as dangerous because the person doesn\’t have to fret if the value of the home drops after the purchase.

If the property is selected properly in a place with good rental demand, it will be good enough. The region must have good transport accessibility, nearby offices and amenities. Do confirm the rental transaction for comparable property in the area. If possible the property should give positive cash flow. If the home doesn\’t give positive cash-flow, you\’ll need sufficient cash flow from other sources to pay the mortgage. You may also take a look at other area to acquire a cheaper property or one that can generate better rental rate.

Be prepared to be hands on to keep the property that you rent out. Every one or two years, you have to look for tenant. If the property needs repair, you will be required to get service provider to perform the repair. If you are unavailable, it will be highly recommended to leave it with a trustworthy estate agent to look after the property while you are able to do what you are most excellent at – making more cash to acquire more property.

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