My boyfriend and I would like to start investing in property. We had a meeting with Broadsword today and have to admit they appear to offer a good path into property investing for people who know nothing about it. However we still have questions and would like people’s opinions on whether a company like Broadsword are a good idea or should we go it alone, and if so where do we start? Our joint annual income is $90,000.00, with our initial loan being $500,000.00 and we have $449,000.00 still to go. Or if not a good idea to go it alone where can I find people/businesses/companies that help? Thanks for any help/advice offered.
Hi!
These are my thoughts:
1. Purchase a copy of "Australian Property Investor" magazine from the newsagent and look at the rear pages to identify suburbs with a good balance of good capital growth, good rental yield, and low vacancy rate.
2. Get onto http://www.realestate.com.au and see what is for sale in that area. Then look at what similar properties are asking for in rent (same website). Once you've got an idea of what is there, visit some open for inspections.
Not convinced you have to pay someone else to tell you where to buy property. I reckon you can manage the above-mentioned steps
What is this Broadsword group offering to do for you, and how much are you expected to pay for it?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I have done an interview with the API magaazine for next months edition about property so might be worth a read.
Any comments about grey hairs wont be tolerated lol.
Richard Taylor | Australia's leading private lender
Thanks for the advice. I check the real estate sites practically every day anyway out of interest, that’s how we bought the house we are in now at such a good price. I really enjoy looking at properties so I don’t mind doing the research and have relatives in the building/construction industries as well. It’s just a bit baffling and overwhelming initially. Broadsword are involved with the building of property and it is their property you invest in. Initially you pay $500 to go to Qld and look at the properties you will be investing in. We gave the consultant in the initial meeting our details such as age, income, mortgage repayments/month and total of mortgage, plus any other debts we have (none). He said he would give those details to their accountant to see if there was a better home loan deal we could have. At the next meeting we would sign a letter of intent, not a contract (he was emphatic about stating that it wasn’t a contract) and he would reveal to us the package they had devised for us. There would be a fee of $150 – $200/week for their services, ie property management. I asked how much money had to be paid initially ie, amount for deposit, and he replied nothing. So obviously that is appealing.
Um, I am confused. Let's say you bought a house worth $300k all by yourselves, and its rental return was say 5%. A property manager (eg the rentals department of the local estate agency) would set you back about 7% of that, which equates to about $20 a week. By comparison, this mob wants $150-$200. Why on earth would you go with that option? You will make no money at all. Is there something I am issing here?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
the Nood,
it all comes down to how much work you are willing to do educate yourself. Don’t rush into it, take a few months, 6 maybe, to read some books, read API, research previous threads on this site, check out realestate.com.au.
If you rush into a property recommended by another company, fair chance they are getting a better deal than you. Not always the case but be very wary.
Richard, looking forward to your article in API, always enjoy your knowledge shared on here.
Thanks Shane more of review of my last 15 years in Oz.
Richard Taylor | Australia's leading private lender
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