I’ll just pick up on Troy’s theme about the Commonwealth Bank because I’m an ex-Commonwealth Bank-ie. Is anyone else here Commonwealth Bank? Yes, another one. Don’t hold that against me. Commonwealth Bank was good for me for 19 years, helped them create a lot of profit, so they got me to thank for where they are.
When I found the club I though I was pretty smart and knew everything. Commerce qualified ex-bank manager, bought my first property through Leslie, who was my first property mentor, Leslie Collegia from South Australia. I was doing my own finance through the Commonwealth Bank. I thought 19 years, they’ll look after me. Second property they wouldn’t lend for me, said, “No, we heard it this morning we’re not going to lend to you anymore.”
Finally put in one of these finance capacity forms like they were called in those days, now cash back form and the broker came back and said “We can get you $300,000, guess which bank through? Commonwealth.” Commonwealth wouldn’t lend it but the broker got me 300,000 through the Commonwealth. There you go, banks, they’re funny creatures. Bastards, yeah, that’s Kevin’s line, I don’t says that because they’re all nice people because they do lend us all money don’t they?
That’s my topic that we’re looking at and how do we get there. There’s road blocks and speed bumps, Wendy calls them speed bumps, along the way. What gets in our way along our journey, and it is a journey. Like I said we all built big portfolios and half of us has got 20 odd properties and so has Wendy and Kevin’s got 189 or whatever it is. It is a journey and there are problems along the way, so we call them speed bumps. It is a change in the mindset and the attitude in this journey.
These are some of the other items. I touched on the finance side, so having the right finance structure is critical. Using lenders mortgage insurance. My accountant hates it, he calls it lose money instantly. He can’t understand why we pay lenders mortgage insurance and still doesn’t. He knows that I can claim it as a tax deduction, he’s a property investor himself in South Australia, buys and sells, but he still does the right thing by me for my tax return but he just doesn’t like lenders mortgage insurance. I love it because it means I can buy more properties.