[M500]

I heard that ANZ is offering secured car finance at under 5% which is cheap money.

AFU regarding the Cash Converters store idea, there is a lot more than meets the eye with CC, their fees and compulsory use of their systems and payday loan deals certainly suck a lot of the margin from the headline interest rates. As Robert said this part of the industry is heavily watched and is ripe for regulation as it is perceived to take advantage of those less fortunate. It is an interesting industry and can be a lot of fun but yes you are dealing with generally desparate people looking for the lender of last resort and there is a question over the future security values with many consumer items loosing value quite quickly these days.

FWIW I would consider marketing yourself and your captial to lend privately on similar terms regarding security and rates and I think you could build quite a healthy semi-passive income stream without the beurocracy that a franchise system brings.

Rob, are you active in 1st or 2nd mortgages? What do you consider a safe LVR these days?

[dkabab]

I heard that ANZ is offering secured car finance at under 5% which is cheap money.

can't remember the exact rate, but i have my car loan with them at about 5.5 if memory serves me correct. that was as of august 13'

[robertb]

Rob, are you active in 1st or 2nd mortgages? What do you consider a safe LVR these days?

Active in that i invest my own money in 1/2 mortgages Melbourne only safe LVR.

65% no more. and for business usage , i don't do consumer lending.

works well for me

12 month interest only 1sts 9 to 10%  2nds 15% to 16% the return is always higher when one factors in default rate after 7 days of 4% and 3 month early payout clause , I'd average 13% on 1sts and as high as 20% on seconds.

But having said that its not an investment for 1st timers ...I've been in the game 25 plus years and only deal with my ex partner ...to many bad brokers out there ripping off both clients and lenders.

[robertb]

can't remember the exact rate, but i have my car loan with them at about 5.5 if memory serves me correct. that was as of august 13'

Westpac are doing Lo doc chps at 4.75%

[M500]

Active in that i invest my own money in 1/2 mortgages Melbourne only safe LVR.

65% no more. and for business usage , i don't do consumer lending.

works well for me

12 month interest only 1sts 9 to 10%  2nds 15% to 16% the return is always higher when one factors in default rate after 7 days of 4% and 3 month early payout clause , I'd average 13% on 1sts and as high as 20% on seconds.

But having said that its not an investment for 1st timers ...I've been in the game 25 plus years and only deal with my ex partner ...to many bad brokers out there ripping off both clients and lenders.

Good call re avoiding consumer lending, the law is so far on the consumers side that you would be forgiven for thinking that they are totally irresponsible and completely incapable of making a rational decision.

Your LVR covenants are conservative but prudent IMO, I would assume you would need to adjust these on development projects where much of the "value" is future event driven.

An old friend in the business once said to me that when dealing in 2nds you need to have the capacity to be able to buy out the value of the first otherwise the value of a second is potentially compromised in an MIP scenario.

Are your rates set with reference to one of the big 4's reference rates + a risk margin or do you price according to what you feel the borrower can tolerate?

I find lending fascinating.

[robertb]

Good call re avoiding consumer lending, the law is so far on the consumers side that you would be forgiven for thinking that they are totally irresponsible and completely incapable of making a rational decision.
So true never did consumer lending when it came to mortgages.
Your LVR covenants are conservative but prudent IMO, I would assume you would need to adjust these on development projects where much of the "value" is future event driven.
65% I work on a 9 month sell up period ,1st lenders default rate,rates,insurance ,legals ,agents,clean up and don't do developments....65% also gives the client the ability to re finance.
An old friend in the business once said to me that when dealing in 2nds you need to have the capacity to be able to buy out the value of the first otherwise the value of a second is potentially compromised in an MIP scenario. depends on the account, i act one month into default.

Are your rates set with reference to one of the big 4's reference rates + a risk margin or do you price according to what you feel the borrower can tolerate?  started doing private morgages in 1990 perhaps the 1st company to do lo doc as at that time most crap loans were done by legal companies.The rates have always been about what I mentioned ..borrower and what they can tolerate good question,one just does not lend in the consumer area,business lending who/whom knows what they can afford there all grown up people and all my loans have always been signed up by lawyer

I find lending fascinating.

[robertb]

sorry i've included my reply in your questions.

[Sparkz]

I heard that ANZ is offering secured car finance at under 5% which is cheap money.

Awesome rate...got any link? tried searching nothing came up

[M500]

sorry i've included my reply in your questions.

all good, thanks for your insights

[Aircon]

Someone owes me money.....I have the proof....there is no doubt.......he is disposing of property assets and sending money overseas. He has told people he wants to make sure I can never get it. EVEN WITH ALL THAT EVIDENCE.....I still can't place a caveat on his property.

How screwed up is that??