Hello – this is my first message. I’ve trolled through the site over the last couple of days – and used my search bar – but to no avail. Premium Finance Services is a new business and offer to fly people to Brisbane, accomodate them overnight and provide a one day intensive on their approach to investment. My husband and I will do this in about a week. I would like some input on this. We are looking carefully at what our investment options are – I have read Steve’s books and some of Rick Ottos info – but still need to know how best to decipher positive vs negative and everything else in between. Not asking for you to badmouth anyone else – just want a well rounded picture. About to press the post new topic button now … seems pretty brave to me!!!!Hi tsellick25896,
Good for you for asking the question – and yes it does take courage to put yourself out there and ask for help. Well done.
As far as this “opportunity” sounds – it just smacks of the old Gold Coast property seminars that occurred in the late 90s early 00s. What happened with these (as far as I understand) is that people from the southern states were flown up to the Gold Coast, accommodated overnight, then driven around to various properties for sale and given the “hard sell”, with all the wonderful benefits of the property being rammed down their throats, including the incredible capital gains and awesome rent returns. Of course, the whole point of this scheme was that these people, having come from the southern states, didn’t know the fair market price of property in Qld (which was much lower than they were accustomed to) and so didn’t realise that they were being sold properties for THOUSANDS of dollars more than their market value.
So my advice to you would be this:
Go along on this trip if you like. It could be fun! Just make an UNBREAKABLE pact with yourself and your husband that you WILL NOT, under ANY circumstances, purchase ANY property during your visit.
If you are shown some absolutely unbelievable deals, then give yourself a cooling off period and go back home and wait a few days before you make any decisions.
Now – these people (if they actually ARE dodgy, and I have absolutely no evidence that they are) will of course be very slick at their presentations, and very persuasive. This is why you and your husband MUST have your plan sorted out and confirmed before you even decide to get on the plane and go up.
Best case – the company is not dodgy. You still have the pact NOT to buy during the trip, and you have made contact with a very good and professional organisation with which you can deal far into the future. Great!
Worst case – the company is as I described above. You have the pact NOT to buy during the trip, and you and your husband have enjoyed a free trip to beautiful Brisbane! Great!
Either way – you don’t lose!
I hope that helps!
Cheers,
Adam
Oasis Finance
for your Vendor Finance solutions
Achieve the Dream!
[email protected]Adam makes some salient points.
Ask yourself what this company makes for looking after you.
Are you paying them a healthy upfront fee?
If not then where do they make money? I suggest on the sale of real estate.
I gather they are an investment group rather than a finance provider? The name is misleading.
All the best and please be very careful.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thank you for your responses – yes I have had a name change – using my name not hubby’s now. Have learnt a lot from reading the messages on this this in the past week – it’s a bit like a live take on Steve’s books – a chance to see how people actually put it all into practice and tell about it while it’s happening. One thing I got out of it was a reminder of the basic order of processing through property ventures. Will be seeing the bank in the next week to get a clearer picture.
Hi Iamsooty,
Don’t do it – too many alarm bells going off for me.
It seems to me that everything is moving too quickly, you are being ‘educated’ away from home, on a short timeline, little chance to do your own checks and balances and you also indicate that they are a ‘new’ company.
To me forget the airfare costs (if you have already paid) and hang around here a little more.
Does PFS have a website?
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Thanks Derek: The website is : http://www.premiumfinance.com.au they have been operating 18 months. GUESS WHAT! Steve sent out the Virtual Kick Start Resource, so I have started that tonight … We are on a little journey of discovery. We know that we are infants here – we have just two (2) houses – NO, there is not a Zero missing at the end of that 2 … they are doing very well – one has doubled in value in 8 years and an agent has just recommended that the other one would go on the market for 70k more than purchase price 18months ago. So Steve’s course will help us know what direction we take. That’s it from this little chatterbox!
Originally posted by iamsooty:Thanks Derek: The website is : http://www.premiumfinance.com.au they have been operating 18 months. GUESS WHAT! Steve sent out the Virtual Kick Start Resource, so I have started that tonight … We are on a little journey of discovery. We know that we are infants here – we have just two (2) houses – NO, there is not a Zero missing at the end of that 2 … they are doing very well – one has doubled in value in 8 years and an agent has just recommended that the other one would go on the market for 70k more than purchase price 18months ago. So Steve’s course will help us know what direction we take. That’s it from this little chatterbox!
You are no baby investor! You have two IP’s more than most folks and should be giving us advice!
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by iamsooty:an agent has just recommended that the other one would go on the market for 70k more than purchase price 18months ago
I am not sure whether or not you are considering selling this property but just in case you are, remember that you do not have to sell to access your profits.
I will also add that PFS seems very focussed on financing strategies (looking at the website) and I am sure that most of the brokers here will be able to provide you with the same (or similar) service without you needing to leave home.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Thank you for your comments – I need to say clearly – one of the houses we live in the other we rent – so I think that makes one IP … re selling property – this is exactly why I am on this site and actively looking for info, knowledge etc – we are in an expanding market there is growth here for at least the next year. There is capital gains to be had here!!
I am listening to Steve as I write talking about Self Leverage Strategy and buying for scarcity not location.
We are visiting properties for sale each weekend and are looking at whether to sell or to use properties for equity.
Why am I hesitant to think of myself as knowledgeable in any way? Well, we purchased one home and lived in it for 6 and a 1/2 years before purchasing the second home which we moved into, renting out the first. In that time we had not paid any off on the first home. However equity was significant and bank gave us total cost for 2nd home plus purchase costs. In 18 months we have paid off the purchase costs plus a little more which is good. We have the other home (which is now the investment property) on interest only repayments. We have also specifically focused on paying off needless debt which is dwindling rapidly.
I know we are doing RIGHT things – paying off needless debt, buying houses that have fantastic growth. But we think we need to restructure the IP from an interest only. I say THINK here – because we are not sure.
I have more questions – and will stop now …
Originally posted by iamsooty:I know we are doing RIGHT things – paying off needless debt, buying houses that have fantastic growth. But we think we need to restructure the IP from an interest only.
I would suggest that you maintain your IP loan as interest only, particularly while you have (it seems) non-deductible (and/or consumable) debt.
Once this has been paid off then you could reconsider the P and I versus I/O debate.
In short most serious investors will prefer to take interest only loans so they can stretch their serviceability as far as possible. Obviously this is a personal choice but the difference between P and I and I/O can be significant.
Notwithstanding my earlier comments and ss an aside even if the loan is I/O there is nothing to prevent you from making additional repayments so that you eat into the loan principal.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113In short most serious investors will prefer to take interest only loans so they can stretch their serviceability as far as possible. Obviously this is a personal choice but the difference between P and I and I/O can be significant.
What is serviceability? Ability to access the funds??
When banks assess someone as a potential borrower they will look at your asset compared to debt level (LVR) and also your serviceability (DSR) levels.
Loan Value Ratio is simply the value of your loans as a percentage of the value of your assets. So someone with $600K of property and $400K of loans – has a LVR of 66%.
Your DSR consider all income sources (sometimes only parts of rental income) and looks at the commitments you have in meeting those obligations (living costs, homes loans, personal loans, credit cards, store loans etc) and whether or not you can safely (as determined by their policies) afford the repayments.
If, at the end of the day, you have enough assets behind you and you can service the loans the bank will lend you money.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Finished Steve’s Virtual Kick Start disk in the early hours of this morning – I think it goes for two hours!! Very good.
Thanks for your suggestions. We both sat down and reviewed all the advice last night. It was valuable. We will keep looking at the market, keep paying off the consumeable debt and keep learning like crazy.
Just one thing – the housing market is climbing rapidly here – like every couple of weeks the properties appear to be on the rise. Is there a place for purchasing another property before we completeely pay out the debt – or that just a big no-no. We have held off – but know that we are missing out on some significant IP’s along the way.
Originally posted by iamsooty:Just one thing – the housing market is climbing rapidly here – like every couple of weeks the properties appear to be on the rise. Is there a place for purchasing another property before we completeely pay out the debt – or that just a big no-no. We have held off – but know that we are missing out on some significant IP’s along the way.
Hi IAS,
Hmmmm – was hoping someone else would jump in and add some comments.
OK – here goes.
The Darwin market is currently performing very well and John Edwards (Residex) believes it will continue to do so for a while longer. However, even in saying that, there will come a point in time when the market will slow.
The reason I say that is you need to adopt a longer term view when considering investment decisions (In My Opinion) and therefore need not believe that ‘you must get in now, otherwise the opportunity will be lost forever’ – time is always on your side. However (which seems a little contradictory) yesterday is usually the best time to buy property.
Now to the next part of your question – pay off consumable debt first or reinvest.
The critical issue is whether or not you can service your existing commitments. This, for me, determines whether or not you can safely afford to invest again at the moment. This is where a conversation with a broker can be invaluable.
We do our sums with each property and work out whether or not it is affordable and then work from their. At the moment we have some non-deductible and some consumable debt (wife has a new car) but are still investing.
As an aside – and I do not mean to be rude here.
I would strongly suggest that you do not go to the workshop in Brisbane.
I sense a level of naivety that may leave you very vulnerable to a bells and whistles seminer. In saying that i have no reason to believe PFS are unprofessional or anything of the sort however methinks there are valuable learning steps to initially take before engaging in such a learning activity.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Thanks for feedback. Will consider and let you know the outcome. Re broker – we were going to see our Bank next week – perhaps a broker instead … or …?? Any ideas, we’re open to them. Cheers – back to work for now.
Hi IAS,
I would always recommend you see a broker first. Banks are normally hamstrung by their lending policies whereas a good broker has a wide range of lenders, with their various policies at their finger tips.
You will need to make sure that the broker you use is fully aware of your long term investment plans and if he/she suggests refinancing etc then ask why. Unfortunately like all industries there are some who do not necessarily have your best interest at heart.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi IAS did you end up going to the course in Brisbane?
Hi IAS are you in Darwin? DHA are calling for tenders to build there 300 odd propertys in the new suburb called lyons near Lee point so they tell me that they should be availible by the end of the year.
Hi there: I am in Brisbane as we speak! We have gathered lots of information throughout the past week – and came with one of Steve’s books, as well as one from Margaret Lomas, plus a property investing mag. We’ve trolled around Brisbane today – checking out various suburbs within a 30KM radius. We also visited with acquantances who are looking to sell their property in Ipswich and took an indepth inspection. They will get back to us with an evaluation.
We have spoken to absolutely everyone we can find regarding the area and what their impressions are of the market (as locals) and devoured every local rag we could find.
The Brissie trip is just a small part of our overall pursuit of knowledge re investing right now. We have already had an appointment with a finance broker (before we left Darwin) and spoken with our bank, so we are informed re our current equity etc.
We have written up our goals for the next month (as per Steve’s templates in Kickstart).
We go into the meeting tomorrow having already explored as many options as we can – and ready to glean more knowledge in order to make some right choices – according to our Goals set out as above. We have our ‘unbreakable pact’ in place – not to sign anything until we have further discussions with our accountant and finance broker and will also chat with a couple of people I have met on this site who have been generous enough to offer their input.
Will let you know how it all turns out. Cheers.PS: Re defence DHA can’t supply enough blocks to meet the public’s demand – as I understand it people wanting to purchase property have had their names put into a ballot to be drawn. Best to check this though. Me thinks govt might regret not buying up the land when DHA offered it to them!
HI IAS
DHA are keeping 300 houses for themselves and releasing the rest for the public, so I dont know how many want a block and how many want a DHA leased house/land. They were going to be sold for 200k but had over 3000 people apply to buy them before they new the price so how many turn into buyers is unknown, so they are now talking about an auction, but stage 2 will follow in the next 2 years or so and will be closer to the beach and with 3 storeys will have see veiws
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