I've purchased a property through one of these groups (not the DPG), and wouldn't do it again. 1. Doing it yourself is the best part;
2. I agree with the CA's advice above; The costs were: To join the 'club': $7kTo purchase the property: Commission: $7k (so $14k in total so far). Was a new 2-bed unit in Inner West Sydney. Purchase price was way too expensive. Had a tenant – good rent (4.5%) (no rental guarantee). Is depreciable. They also had a finance arm (at rates over market) – such a bad experience I arranged my own finance in the end. I wouldn’t use them (or any other group) again because of the way they market the properties. The group values the property way too high, then markets it at a reduced rate so it looks cheap. Purchasers think they get instant equity. I later found out that their valuation included a future-looking 12-month’s growth. VERY disappointing. My bank valued the property at my purchase price (no surprise there) – it wasn’t my first IP, but I should have known better. My accountant almost sacked me once I told him the details of the purchase. My mistake and I’ll wear it, but I would warn against using these groups. They do this day in day out and know beginner investors when they see them.