Hi Mel & Smilie,
Capital growth is market driven and is varaiable based on local conditions.
The concept of relocating people is great and they claimed that they run regular seminars in RSL clubs to attracting pensioners.
I did went on to one of their tour and one of the property comprises of 10X2BR unit and the asking price was $900K with rental return of $90k pa. I was very keen on the property, so I packed the family and took a 2 days trip to inspect the property and get to know a few of the local agents. The feed back I got was, they were so many out-of-the-area investors, that they aren’t any property avaiable. I came to realised that similar property were selling at about the same price. For instance, there was one 8x2BR unit block asking for >$700k and is listed for Auction.
Yes, they do inflated they prices(but limited to the rental they can achieved), but they do provide the following services: 1)a good cash flow to spring boarded onto multiple properites, 2)sourcing of properties.
As we all know, we don’t have the time nor it is possible to locate every properties in every regional towns.
No, I did not buy the property. It was sold before I could organised the finance. To get around the large deposit required, one option was to request for vendor finance.
Higher rent was achieved by upgrading the existing properties with the built in price of the properties they sold. I am not here to justify they business model but there is a problem with this model – I think it’s called conducive problem or something! This being, they are the head lease, if the tennant paid them their rents and they are not pass on to you, you will have a problem of evicting the tennants.
Back to my point, has anyone bought from them and would like to share their experiences?
Thanks
[8D]