Hi
I’m brand new to this forum and am after any good advice I can get. I read an older post from 2014 regarding APAS (Aust Property Advisory Services) and was just wondering if the information is still correct/current.
My husband and I have literally just started looking into property investment and had a visit with these guys on Friday just passed. Seemed a bit rushed in their approach… Help!Hiya,
I haven’t used them personally, but I’d probably skip on any investment services company similar.
Companies like that tend to
1) Listen to your needs so that it sounds like your own the same path
2) Give you advice on what you should invest in
3) They just so happen to have some of that product they’re suggesting (built by their developers for which they get a kick back for)
4) They sign it up using their real estate agent, financier, conveyancer, etc, who are all representing them and not you
5) All of the above get paid by adding to the price that you pay for the property.What you’re better off doing is reading online forums such as this one and others about. Seeing what property managers, mortgage brokers, accountants and conveyancers you’d feel comfortable using (or find out who others are using) and form your own team will be far more cost effective and you get to choose whatever property in Australia you like and are comfortable with.
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
Agree with DT above, proceed with caution. Companies that call themselves advisory companies but offer a one stop shop with fees and commissions paid by other parties are in my view sitting smack bang in conflict of interest land. They offer all the services, legal (which should be totally independent) also offering finance, and act as a broker, so they get paid by the banks, that is kind of ok because they get a similar fee from any lender. BUT remember they are also getting their PRIMARY fee from the builder. This means you are not their client. You are the stock on the shelf.
The developer is the client and they are a sales engine designed to move stock that has been built, not find you the right property for you. Just ask them what if the right property for me is a 2nd hand renovator? And see what they say. My guess will be a combination of “its bad for your tax” and “we don’t do that”. When you add three (or more) fees into the mix (mortgage, builders commission plus legals) they have a huge incentive to get your deal done whether it suits your needs or not, so you are likely to get taken through a sales process that paints a rosy picture.
In my opinion companies shouldn’t call themselves advisors when they are being paid by the other side. Imaging being offered “legal advice” by a lawyer who was representing the other side in a courtroom dispute…would you trust it? No. When I pay a solicitor I want to know two things. 1 – Is he/she any good? 2 – Are they working just for me?
In property I believe you should build your own independent team of experts the same way. Choose a good property solicitor, a good mortgage broker, find some good data sources and pay for them and interpret it yourself to make your own choices and back your research, if you want help with property selection research and due diligence it is available from BA’s too but make sure it is independent and licensed.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Hi TraceanDave,
+1 for the above two posts !!
Watch out for ANY company who wants to know how much Equity you have in your own home – and watch how quickly they snub you if you have none, or little.
See, they NEED you to have equity so they can sell you an OVER-priced property yet still be paid by you (indirectly). And by providing your financial advice, and your legal team, they can snow you all the way into an over-priced piece of property that won’t gain Equity for 10 years or more.
Beware of ANY company who doesn’t want you to provide your own legals and finance. As Knightm said, they are up to their necks in a conflict of interest – and your interests are what suffer in that circumstance.
By the way, I don’t know the group you asked about – but “Buyer beware” with all such groups. Especially if :-
1. They cold call you.
2. They want to help “put your kids through school”
3. They offer you “financial advice”, which just so happens to involve selling you a new property IN ANOTHER STATE !! (It helps, as you might think a new 4Bd, 2Ba property in the Gold Coast is a “steal” at $450k (based on your knowledge of Melbourne or Sydney prices). In reality, it is probably $50k too much for that market !!! Guess who pays THAT?
4. They want to know you have heaps of Equity in your own home. If you don’t, you’ll be dropped like a hot spud.
5. They have “all you need” – accountant, finance broker, lawyer – and they can sign you up, send you on to each one, and have you “dressed like a Xmas turkey ready for dinner” in just a couple of hours. That then gives you YEARS left over to regret the decision.
6. There will be a “rental guarantee” (all paid for by YOU!!)
7. Ask for comparable properties/values, and you won’t see other RE agents’ sales – just their own.
8. Suggest you use your own financiers/legal team and watch what happens. That doesn’t fit with THEIR plans.
9. If they offer you a “FREE flight” anywhere, RUN and don’t look back.Regards,
BennyPS There may be some GOOD companies that might do one or two of the above – but they WON’T be offering to “do it all for you” on the financial/legal side of things. Also, most good companies don’t “cold call”, and they certainly don’t offer their financiers/lawyers to you to complete the deal.
So if the company called you to offer a path to wealth, the alarm bells should already be deafening !!
Thankyou so much to all who replied, this is a great forum, I’m learning so much. Hopefully on my way to our 1st investment property with all this great information! :)
Thanks for posting this question and you all replying. Makes so much sense and helps people like me who are starting to understand being a smart investor
Hi traceanddave, Anku
This what the forum is for sharing information and learning from others.
Don’t worry we all started someone where.
Purchased my first IP in Australia in 1994 and 10 years later was lucky enough to be retired from the workforce living off my rents but only started by accident and reading and learning from others.
Ask as many questions as you like most of us don’t bite.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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