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After reveiwing my previous comments today, I feel that my comments were wrongly focussed on Fitzgerald and this was not initial intention.
However my comments are directed to anyone about to purchase an investment property from a builder/developer that markets and sells their own property using the wealth creation industry as a sales platform.
I must acknowledge that Fitzgerald does offer a solid and informative education platform on how to build a property investment portfolio from scratch. He defineately is not a spruiker and has the real estate industry runs on the board. Over the years he has 'walked the talk in real estate investing'.
My problem is that any builder/developer cannot give 100% unbiassed advice about their own house/land packages that they are selling and as a purchaser you must take all due care before investing with them
Many of these marketing companies (builder/developers ) when selling their new investment properties can be over priced and proper due dilligence is a must. From past experience, Fitzgeralds house / land packages selling prices usually meet bank valuation. Thats good. Your getting value for money
I must restate that Fitzgeralds company offers a very good educational platform for the beginners, offering best selling book/s, CD's ect…..
Whats vital with buying builders/developers real estate investments, is that you must undertake thorough due dilligence.
You must establish if the asett class they are selling has a market demand in the local neighbourhood (house or townhouse)
You must be able to compare your proposed investment property price with at least 2-4 other property sales in the last 3 mths
Your property price should be (+ or -10%) of the asset class mediam price for the loacal area
The area your contemplating investing in should be have less than 25% rental property ect……….You get the idea, the builder (marketing companies) ar trying to sell house land packages and your trying to purchase a great buy. Be Careful and do your home work
A good idea, try reading one of fitzgereads books, its not a bad way to start leaning how to invest into real estate.
Good InvestingTell your friend that John Fitzgerald's primary business is not to help people grow wealth, but his business is to market and sell house and land packages that his construction company builds. In many cases the houses can be up to $50k over priced and in a new area with low demand and a flat market it could take you years to break even. Beware of the spruikers claiming to be wealth creation experts when they are really a sharp marketing / building companies that markets and sells overpriced houses.
Be careful of who you take advice from. If they are involved in the real estate sale transaction their advice will be defineatly be supporting their interests and not yours
In times of a flat economy , cash flow is king. Tell your friend that demand in an area is the most important criteria. The more demand an area has the greater the growth will be. Good luck
Thanks Elijah Homes
I will be in contact with you shortlyBest Regards
RamWayne
If you have a pre approval from a bank to buy your land and a construction loan to build your new house your bank would settle on the land first. The initial payments would be I.O. When your construction loan starts the breakdown is usually
10% deposit, 15% slab/footings, 10% frame, 35% lock up, 15% fix and a final 10% final payment. All payments are interest only until the final progress payment then it reverts to a i.e 30 year variable loan Regards Ram
