Hi there,
New here and new to Property Investing, would love to hear from anyone who has had dealings with a company called Omni Life, they are based on the Gold Coast and offer full comprehensive packages including financial plan through to organising finance and organising the building of the new investment property. The finance plan is based around using a revolving split line of credit…as I say I am a complete novice and have had this organisation recommended to me by an accountant and would love to know if there are any concerns with this type of arrangement etc etc..
Thanks in advance
NIFF
I haven't heard about them but the words "Gold Coast" "financial plan" "new investment property" and "revolving line of credit" rings alarms.
How do they make their money? Are they charging you a consultancy fee? Are they lending you the money to finance the property? Are they selling the property? Work out what their motivation is.
Cheers,
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks for the reply Jamie, we actually live on the Gold Coast so its not far removed from where we are, they have an upfront fee for their services, they are helping to organise finance through a mortgage broker and it appears it will be through a well known lender.
Aside from that do you see issues with the LOC plans ??..Is there some key items or questions I should get answered??
thanks again
Niff
Question 1- Is your accountant involved with this group?
Personally I wouldn't touch it with a barge pole. Any comprehensive package comes with payoffs and risks.
If they are financing, etc you have no guarantee that the price you pay is market value.
If you have to finance through a bank they will only lend you the money on market value.
If they need gimmicks to make it sound good maybe it's not that good. Look at real estate in similar locations and check the asking price. Check rental vacancy rates in the area. There is a lot of due diligence to do before purchasing. Don't just assume they have it all covered. At the end of the day they are out to make money.Keep looking my friend.
I agree with Catalyst, NIFF
There is a strong argument for keeping finance and property transaction at arm's length unless you have independent confirmation of the property's value. I recommend my clients paying for their own valuation. Remember the two tiered marketing of properties in the Gold coast during the late nineties. A major bank wasn't doing valuations on purchase properties as southern state investors had ample equity in secondary security properties offered.Graeme Freer | Freer Property and Finance
http://www.freerpropertyandfinance.com
Email Me | Phone MeBuyers Agent
Thanks for the feedback, couple of clarifications though….the properties involved are not on the Gold Coast, it just happens that I live on the Gold Coast and therefore the advisor I am talking to is also based here. It is a plan based around using the LOC to pay off the existing interest priciple loan with the aid of an investment property, the selection of that propertey including location is up to me, they are offering their research to aid in the selection etc. On the surface it doesnt seem like one of those shonky deals that were in abundance here on the Coast, and to be honest the market here isnt one to be doing much with at the moment (only my opinion) there are better oppurtunities in the SEQ area.
Would be interested in any feedback in relation to the LOC part also…cheersAre they telling you top-up the LOC routinely (eg. once a year) and use it to make the repayments? If so, it's a dangerous strategy that's based on the property appreciating by a certain amount each year. What happens when that property has a year of negative growth?
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Jamie,
Thanks for the feedback its much appreciated….But sorry for my naivety but when you say top up do you mean another loan???..and I assume you are talking about the IP having a year of negative growth?
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