I remember times...

I remember times when there was not a problem to buy 3 bedder in Morphett Vale under $75K.

"Now 21.4 per cent of house sales and 33.5 per cent units sales in capital cities were for less than $400,000."

http://www.adelaidenow.com.au/realestate/looking-for-a-cheap-and-cheerful-home-youd-better-be-ready-for-a-commute/story-fni0c830-1227500897257

Media urinates boiling water about lending restrictions for investors and how auction clearance rates in Sydney are "falling" (Ha. Ha. Ha.)

Yep, restrictions. Those who do not know how and where to borrow now can borrow less. Where do you think they will be heading for cheaper properties?

If I was in the market to borrow money to buy a property...do you have any broker or brokerage company that you can recommend?

Also, apart from Homestart...anyone to recommend for low income earners to get their foot on the property ladder? I have two sons who want to buy a property.

Thanks.

Thanks Tamara,

It has been few years when I used mortgage broker last time.

Since I am Platinum/ Gold/ Diamond/Private and whatever client with many lenders - I have my personal private bankers who usually happen to be bank managers at the same time.

It is just a matter of phoning around and figuring out who is hungry for business at the moment. You know - the usual stuff - one day lender does not want to know anything about residential lending? but the other day they sustain losses somewhere else so they suddenly start to be extremely friendly as they need to mend their books.

Before I grown to that size I used

http://asapfinancial.com.au/

They are small botique brokers, they know what they are doing and never failed to get me money. Do not know what they are like at the moment, but it would not hurt to talk to them.

For people who do not know, it can be really painful not to use mortgage broker(or use lousy one). Most of the Joe Bloggs are under delusion that if they are with the bank for 10 years, bank will reward their loyalty. They put an application in, and to their surprise get declined.

Every application reflects on your credit history.

Next step usually to go to a "mainstream" broker (Anyone suggesting that I mean Aussie HL is incorrect). If you have particular desire to feel like you are guinea pig - please do. That will be your contribution to training. Usually htey get a loan application for you just to learn hard way (for you, not for them) of how not to apply for a loan.

This is the second mark on your credit history.

Now imagine you are HL assessment clerk at the lenders office. You have got a pile of applications and revenue targets. Would you waste couple of hours going through the application which has two declines on credit history. Nobody would. Declined straight away.

I deal with people who could not get an interest free finance for a washing machine after three declines. Or could not get mobile phone (carrier conducts credit checks).

To be brief, be VERY careful when applying for a loan. If it means that you have to wait say 3 years for your credit history to calm down - then you might have lost hundreds of thousands of dollars (market simply goes out of your reach).

This morning I was stopped by border security.

"Who are you and how dare people who look like this wander our streets?"

"I am a love fairy..."

"What occupation is this?"

"Worshiper of Casanova..."

"Hmmmmmmm..... Can we see your passport? Hmmmmm....... Nationality - Australian...... Hmmmmmmm....... Do you live in Adelaide?"

"Yes...."

"What is this song that you were singing?"

"Beatles. Lady Madonna...."

"If you are an Australian - why the hell you sing pommy songs? Come with us."

I started to panic and woke up.

Bloody Tony Abbott.