hi all

thanks again people im touched that you have responded in the manner you have.

I’d be happy to share more but on a public forum i have to be careful.

the very thing that peterp mentioned in regards to asic was how their attitude was because it was property.

Someone i spoke to the other day suggested i write to the regional manager of asic s.a.
i just feel that by the response i got a few times from them peterp may be right.

I’ll try not to be too long winded maggie but it is complex i will try an summarise as best as possible.

-1999-looking for investment property with view of property investment portfolio/ad in the paper re: start property investment portfolio etc.
we responded/we received a package/we met with this individual/ he did the risk tolerance thing suggested my wife stop her managed fund as it is better to pay of debt(personal) and how great bad debt is (a la investment property).

we bought off the plan townhouse and land(torrens title)in the cbd to be used as a seviced apartment.(thats what he convinced us was the best starting point).

points
-the figures were not all disclosed
-the loan amounts were not correct
-expenses were not all shown
-cashflows were shown to be positive when in fact with the correct figures they were negative cashflow
-we had to furnish the unit otherwise there would be no rental guarantee.
-the unit would be leased to a company which specialised in accomodation. (later we found out it was his company). he was paying himself.
– he would pay rents after the unit had been occupied and he had been paid (in advance)
-we could only do this if we paid an amount close to $2000 for mortgage monitoring and first year advice. (the mortgage monitoring never happened)
-he was very convincing he could sell (ice to an eskimo) he made the deal look good
– not long after the completion and we started renting the unit he took over the property management agreement we had. he never told us that the person was just holding the money in trust as far as he was concerned(this became a fight btween them).
We have been paying 10% and never had one report
I got to know the property manager and he told me the arrangement was 7% property management charge 3% for the advisor.

what i have described is only the tip of the iceberg

I just think as a financial advisor he should never have put us in a position of high risk our tolerance was medium at the extreme.

you have to understand that there were

-delays in construction for many reasons 18 months late.
-he had not negtioated any safety net for us with the developers
he left us exposed to progression payments increasing a various stages of construction and no additional income

He sold himself as a one stop shop so to speak his organisation was set up with a lawyer/accountant/and whatever one needed for investment be it shares or property.

HE WAS A SALESMAN NOT AN ADVISOR GETTING KICK BACKS FROM EVERY ANGLE.
WE TAKE ALL THE RISK AND HE CANT LOSE. MANY PEOPLE WENT THROUGH THIS PROCESS (CASHKOWS) THATS WHAT WE WERE

the bank has told us that people have broken down in their office because of the position they were put in.

I do have one question if someone could answer it.

In my lease is says
if the lessee(with the mutual agreement of the lessor) wishes to renew the term of the lease of the premises for x yearsetc. DOES THIS GIVE THE LESSOR A CHOICE WHETHER TO GIVE THE OPTION OF A FURTHER TERM OR NOT.

The lawyer i saw said yes it does
the advisor said no it doesn’t.

well i hope i havent bored you with too much of this but i fear other people are going to go through the same and i feel powerless. with comments from yourselves it does give me a glimmer of hope that there are good people for this industry.

kind regards
alf

hi crashy

thanks for the reply well i am not sure i feel that its touch and go but certainly not ethical.

have you made up your mind what you are going to do with the financial positions you were seeking.

you could advise me as a friend seriously

if you havent got of the ground yet do some friends a favour give them some advice of your knowledge if you are good the word gets around word of mouth very powerful.

regards
alf

hi steve

just a quick thankyufor your response.

kind regards

alf