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They mortgage insure all loans.
Have high set up fees.
Have high exit fees.
The rates are not as stable as the banks.
They pay high commission.Not sure who what works for. Actually I am sure. The Broker!
I would stay around Mornington, mt Eliza, or parts of Frankston South. Avoid Carrum, Frankston North and most of Seaford. Seaford close to the beach is OK. Mornington has great beaches, booming population, new freeway etc so is a great place to invest. Parts of Frankston have great potential as the council in remapping a new face for the town, it is buy the beach and restaurants and cafes are popping up around the place.
Best side of Melbourne. Dont try to pick better growth from Frankston South to Mornington. Just get in there and keep your money in long term.
Sent you a personal message.
duckster – plane, glider – who cares? connotations are the same.
They're not providing advise – they're trying to flog properties for a commish. see http://www.futuresecurity.com.au/aboutus.asp
Intrigue
Bit of useful info – if you submit a formal written offer on a property, the Agent (by law) must amend the price guide to your offer.
For example, if a property was marketed with a range of $250K – $300K and you put in an offer of $280K (which would be declined by vendor, no doubt), then the agent must amend the price guide to $280K+
This takes out a lot of the competition as they're expecting it to go much higher than this.Cheers
Russell
I would steer clear of them.
I worked for a company that financed loans referred by a similar Investor club to the one you describe.
They market properties with inflated prices, but don't tell you when the valuation comes in short of what you paid for it.
You don't need the services of a group like this. Their method is pretty simple:- buy property, then use that property to buy more. Trouble is, the properties they're probably trying to sell you are overpriced to allow for the big fat commission they're getting on the sale. So you're unlikely to get any growth/equity for some time.
I would recommend you do your own homework on where to buy a good investment and only buy direct from a real estate agent.
By the way – I love the photo of the jet plane on their home page…………… tell em they're dreaming!
itsandrew,
You're right – If smaller lenders are forced to cut early exit fees, they will need to bump up their rates to compensate. Therefore possibly making their rates higher than the Big 4.
It takes at least a year for a lender to start making money on a loan they have provided due to the costs associated with setting it up. If the customer leaves the lender before they've started making money on the loan, they'll charge horrendous fees to compensate for lost income (they've budgeted to earn a certain profit on a loan, so if the loan disappears, they still make a profit). This is how the smaller lenders have managed to offer great rates.Make no mistake……….the Big 4 aren't called the Big 4 for nothing………they'll never lose.
Whilst they appear higher at the moment, that will change as soon as the exit fees are abolished.Zoran – you need to check the Title of your land for any covenants relating to what you can and can't build on the land.
I've been in the industry for over 10 years and I'm not sure what "building pocket" means, but it could mean simply that you must maintain certain dimensions between each dwelling (as you said, each property must be a certain size).
Some areas of Sunbury specify that a block must be a certain size, or the dwelling must be brick – or even that you can't park a caravan outside the dwelling for more than 3 hours!! I would check the Title and go and see the council for confirmation.
