The Hybrid Group of Companies

[HermanZ]

Kieran and Phil, thanks for your time. Its good to have a NZ focuused forum with industry experts contibuting.
Marc, thank you for your input. I would not worry too much about some posts of a "slightly" agressive nature. We are all over 18 I think!
If you read this thread from wo to go, it is actually quite revealing.
My advice: Check out both their websites, get a couple of issues of KPI mag, and make up your own mind as to which suits best (if any).

Anyway REAL QUESTION follows:
Kieran, with your finance background you might be able to help me with this:
What is an offset account (in Oz)
and is their an equivalent offered by NZ banks.
I have some "spare" money short term, that could be lowering my interest bill.

Thanx
HermanZ

[LeanneS]

Hi Kieran

Thanks for coming and welcome to propertytalk.

Like many people on this board I am not living in NZ and so I'm looking for a finder who can source NZ deals for me without me having to come to NZ every time.

I have been looking at the deals on your site but I'm afraid I am confused by the way your deals are presented:

eg
Address: Oakleigh, Takanini
Purchase: $217,400
Deposit: $20,000
(Includes Hybrids Low Finders Amount)
(assumed 100% finance)

Now I have just refinanced another property and have about $20K sitting in my bank account - does this mean that is all I need to purchase this property, or does it mean I would have to put down a deposit from somewhere else as well and refinance my way out of it?

Thanks for your help,
Regards,

Leanne

[LeanneS]

btw Phil I undestand if you feel hard done by but your accusations and vitriol do you no favours.

I would not do business under any circumstances with Housemouse because of her ethics of "shout about lies and its not fair" whenever someone disagrees with her and I would hate for you to put yourself in her camp.

Best of luck,
Leanne

[inzvestor]

Offset accounts

Hi HermanZ

We have offset accounts in the UK as well.

Have you also looked into the ASB Orbit Home Loan (works on revolving credit)

An offset account over here rewards you for saving whilst paying off your loan by reducing the interest charged while not paying you interest for the amount saved.

ie Mortgage $200000
Savings $ 25000

You only pay interest on $175000 (mortgage less savings)

Check out this link for more details

http://www.firstdirect.com/offsetmortgage/offset_mortgage.shtml

[kieran]

Kieran, with your finance background you might be able to help me with this:
What is an offset account (in Oz)
and is their an equivalent offered by NZ banks.
I have some "spare" money short term, that could be lowering my interest bill.

Thanks Hermanz ,

Inzvestor from the UK has answered your question about offset accounts well.
The equivalent in NZ is the Revolving Credit Account which allows you to reduce your mortgage debt by depositing surplus credit funds into it (therefore reducing the amount of interest you are accruing on that mortgage) and you still can access your funds by redrawing them out whenever you want to.

Revolving Credits are the way to go in NZ if you have surplus funds from time to time.

I am an advocate of splitting mortgage debt into several loans and then having some on Revolving Credit plus various fixed rate terms which gives flexibility AND an interest rate risk management strategy as not all debt is floating and the fixed rates are not all due to expire at the same time (when interest rates may be much higher).
It amazes me to see that 65% of ALL mortgage debt in NZ is either on a floating rate or due to expire from a fixed rate within 12 months!
Not much protection there if interest rates spiral up a couple of %...

[kieran]

I have been looking at the deals on your site but I'm afraid I am confused by the way your deals are presented:

eg
Address: Oakleigh, Takanini
Purchase: $217,400
Deposit: $20,000
(Includes Hybrids Low Finders Amount)
(assumed 100% finance)

Now I have just refinanced another property and have about $20K sitting in my bank account - does this mean that is all I need to purchase this property, or does it mean I would have to put down a deposit from somewhere else as well and refinance my way out of it?

Thanks LeanneS,

Thanks for the feedback. We are currently looking at how to better present our deals and you can expect some changes next year Any suggestions are welcome). In the meantime I wish to clarify what we actually mean by deposit and 100% finance.

The deposit we refer to is not the deposit for financing purposes but:
A) the deposit required to be paid to the vendor in terms of the purchase and sale agreement we have on the property
And B) Our fee for sourcing the property.

When we make our calculations of Surplus Cashflow (SC) and Passive Cashflow (PC)we ALWAYS assume that you will borrow 100% of the finance to purchase the property. The reason we do this is so that we always compare properties in the same light as each other AND the large majority of investors we deal with use Equity in other properties to borrow 100% for each additional property purchase.

Because you live offshore we usually find that lenders will only lend you about 70% (sometimes more but it's looked on a case by case basis by our lenders) of the purchase price (or valuation whichever is the lesser).

Regards

[ESC]

Leanne S

Leanne,

I share your concerns re Housemouse. I must say of all the forums I have come across Marcs professionalism and moderation is superb. He has earned a huge amount of respect for how he runs this forum.

Leanne, I love life and respect others. When the All Blacks take the field against another team they play to a code of professional conduct and ethics. In business I do the same, what disappoints me (angers me even) is others who play the game of business with low blows and Hopoate tactics. They are determined to win at all costs no matter how much damage they do to the game or the other players in the process.

On the rugby field they would be red carded, in business they are tolerated and sometimes bizarrely rewarded.

It seems easy to talk about treating others as you yourself would like to be treated but oh so hard for some people to do it.

Thank you for your comments have an awesome day!

[cube]

Hi,

Seems to me that Phil is a bit paranoid, trying to shut down Jenman et. al.

Certainly, requesting the removal of defamatory information from website is not unheard of. Requesting links to be removed - more dodgy. Requesting links to be inserted to rebuttals (and possibly more defamatory remarks going back the other way) - priceless.

Still and all, it adds colour to life, while we wait for the yields to grow again. I have just spent the last couple of hours looking through the local rag for something that will yield marginally above the 5-year fixed interest rates, and on the face of it, there ain't a lot out there.

I'll have to go in to ESC mode, and look for the D's - if I find any Drought Stricken Farmers in West Auckland, I'll let y'all know!

Happy investing.

cube

Remember, Phil, just because you're paranoid doesn't mean that they are not out to get you!

[Noddies]

Hi All
Perhaps this posting should be listed under another category as entertainment.
As a professional in this industry , based in Australia I am quite amused by the slanging match going on between both of you.

My question to both of you concerns the charges you make for your sevices. Why have them at all?
Don't they add to the cost of the investment ,and as such disadvantage your clients? If all savings made by using your services are passed on to your clients ,then they are more likley to use them , also your clients are more likley to succeed with their investments and the strategies you as professionals work out for them .

Regards

Bryce Inglis
[email protected]

https://www.ipal.com.au

[kieran]

the charges you make for your sevices. Why have them at all?
Don't they add to the cost of the investment ,and as such disadvantage your clients? If all savings made by using your services are passed on to your clients ,then they are more likley to use them , also your clients are more likley to succeed with their investments and the strategies you as professionals work out for them.

Interesting question. I'm not sure if you are aware of how much time and money it takes us to actually find,negotiate, present and sell deals to our database.

At Hybrid we do not operate under any franchise type arrangement and I don't think our 5 full time property dealers (finders) would be too keen if I asked them to work for free...

There are also many costs in running our property dealing business i.e. 5 x mobile phones (they have huge phone bills because a large amount of their time is spent communicating), vehicle expenses, valuations (on deals that dont proceed), legal expenses (we have an internal lawyer as part of our group who does some of the legal work) and we engage two external legal firms too, internet expenses, research expenses, adminiatration support staff etc,etc

We also obviously (hopefully) generate profits but only of we can find deals that our investors are prepared to buy (i.e. if we fail to perform well we can make a loss).

I welcome any suggestions on how we can offer our services for free (but recoup all overheads and still make a profit) please let me know.

I can't speak for our competitors but we have just surveyed our database and based on the results nearly half of our database consider our fees to be better than our competitors and a total of nearly 90% consider our fees to be either the same or better than our competitors.

[Noddies]

Hi kieran
Thank you for your reply,as I understand your situation, you are able to save clients money by scourcing properties at or below valuation, and that those properties are negative geared and cashflow positive.
This is a similar situation to how Margaret Lomax works here in Austrailia and could be interpreted loosley as operating as a buyers advocate for clients.
I will wait until Phil Jones has a chance to post a reply to my question before answering you fully[I hope he is willing to treat this in a civil manner,as a mature buisinessman].

Regards
Bryce Inglis
[email protected]

https://www.ipal.com.au

[kieran]

Thanks Noddies,

But just to clarify one point you make...

those properties are negative geared and cashflow positive.

Again I can't speak for others in the industry but we don't usually present negative geared properties. We focus heavily on positively geared properties (i.e. at 100% funded) so the cashflow before any tax rebate is positive.

The reason we do present some negatively geared properties is that they are usually in superior suburbs of Auckland and have good equity available upon purchase. (example of one deal in Remuera we sold in June this year sold for $434,000 with a Registered Valuation of $520,000).