Hi
I am currently talking with a rep of this company. They give bus tours to country towns with a view to selling houses or blocks of units. I am very, very interested in any feedback anyone may have had with regards to dealings with this company.
Thanks a million,
ChiaraAbout 5 years ago I went to their seminar where they had a guest speaker mother who in 3.5 years paid off her mortgage via property investing. This rolled into a Country ‘sale pitch’. Otherwise the experience was enlightening. My friend bought some property off them.
Hi Chiara
if you go don’t committ to anything. But after do your own due diligence. This means looking at what prices other properties are selling for through local agents. i could almost guarantee you will pay top dollar form Melbourne or Sydney based business’ like these. Check with local agents they will tell you the true situation on rental vacancy rates etc.
regards westanThanks,
I appreciate the feedback. I have yet to sign up for one of their trips. I think one of my main concerns is their reliablity as they are a new company – Property Head has your friend had any difficulties as regards receiving her 10% rental income or any other notable issues??Thanks again,
ChiaraChiara, I have never heard of this crowd, which is not surprising due to where I come from, but on face value (the way you have described it) it appears to me to be the biggest rort I have ever heard of.[}
]I can just imagine having a bus load of ‘desperate investors’ pull up outside a house for sale, or for that matter any thing that even looked like it could be for sale.
I can just picture it, the salesman would start at the idiot, sorry I mean ‘desperate investor’ in the front seat asking for an offer and lord only knows what it will be by the time he/she gets to the back seat!Does the word gazump mean anything to you[?]
It sort of reminds me of a trip to bangkok, the guides would only take you to the shops that they had an arrangement with (kickback).
To me it seems the only people to benefit from this are the sellers, salespeople, and bus company[
]Why dont you just jump in your car and go for a drive, you can stop when and where you want, and you can look at all properties, for example, last weekend I took the family for a drive to Canberra to watch the RAIDERS play and enroute I checked out all the property shops on the way, try this approach.
It can be a win-win, my family got to spend the weekend in canberra, I got to watch the footy and check out property. And I didnt have a middle man trying to rip me off.
BC
Hi Bc [
]Well I’m pretty sure the auction doesn’t take place on the bus – although I can just imagine…
I do agree that one of the best ways to purchase a country property is probably by driving yourself round and checking properties that you have located yourself. The thing with this is that it is time consuming and at the end of the day you have a property which you are responsible for renting either personally or through an agent. I have absolutely no problem with this method – in fact it is the one I currently use and will continue to use regardless of whether I purchase though this company or not.
However, the advantage of making a purchase through this company is that they guarantee 10% return over 20 years. They obviously charge over 10% for rent and keep the difference but they are also responsible for maintenance and property management over the 20 years.
Sounds too good to be true?? Thats what I thought which is why I posted todays question just to get some feedback and hopefully hear the reaction of some forum members who had had personal detailings with this company.
You’re right it may be the biggest rote in history but it could also be a win win situation. I haven’t committed to anything and will do a lot more investigation before even comtemplating setting forth on this path. Its been brilliant to get some impartial opinions – the more varied the better.
Thanks again,
ChiaraHowever, the advantage of making a purchase through this company is that they guarantee 10% return over 20 years. They obviously charge over 10% for rent and keep the difference but they are also responsible for maintenance and property management over the 20 years.
In light of this new information, I can understand why you would want further advice, as it sounds reasonable, do they have a website [?]
BC
Hi Bc
No they don’t have a website so I have been scrounging around everywhere for info on them. I am basically arming myself with a list of questions for their rep!
Cheers,
ChiaraHi guys
what are the guarantees worth if the company has made a killing and then is gone in 12 months time ?
Another thought 10% return sounds OK now but in 10 yrs when all other rents have doubled (doubled again in 20yrs) you will still be getting only 10% on the purchase price?
Sorry guys it sound a bit dodgy[}]
But i’m a curious person and who knows a trip in the country might be nice. They may open you up to other posibilities in the area.westan
Hi Westan,
Worst case is if the company dies in 12 months and I am left with a property to rent out – Which would be the case anyway if I just bought a country property myself. BUT which is something I will have to take into consideration if buying ie. will it be possible for me to rent this property myself in the event of the company going bust.
The 20 year guarantee is also available for 5 or 10 years. However I think I would be happy to receive 10% as this would more than cover any mortgage repayments so at the end of 20 years I own the property with little hassle and if as you say values have doubled then I can either sell it for double or increase the rent. May not result in the same earnings as if the rent was increased periodically over the 20 years but this way a steady income is ensured…
Obviously there is for and against this situation but it does seem a hassle free alternative..Cheers,
ChiaraThis company is based on the Central Coast of NSW ( Gosford ) with an apartment address. The lease is with a third party- a local solicitor- and I have heard that they are currently under investigation. These people are not real estate agents, nor do they hold any licences to deal in real estate. When I had enquired about a web site I was told that the director of the company was “old fashioned” and this was also the impression I had when I looked at a photocopied booklet of available properties. I was also lead to believe that the tenants are centrelink clients- this would explain the maintence deal but it all seemed a bit odd- who makes money? where are you in the food chain? Just my thoughts.
Hi Chiara
all the best with it, keep us informed how it went.
regards westanHi Lenny,
When you say you heard they were under investigatoin do you know who by and where I could get details about this??
Thanks,
ChiaraHi Lenny,
When you say you heard they were under investigation do you know who by and where I could get details about this??
Thanks,
ChiaraCheck with the Dept of Fair Trading
Hi Lenny,When you say you heard they were under investigation do you know who by and where I could get details about this??
Thanks,
Chiara
Hi Chiara,
I recently came across this company via a friend of mine who purchased a property with them. I am actually taking the bus tour this weekend to find out more about it all. On the face of it, it does seem dodgy, but worth researching. For further info, they actually tack on 3% or a CPI figure each year on top of your 10%. The person I spoke to on the phone said that they make their profit through the rent. He was saying that there plan is to use pensioner’s and retirees from city locations, relocated to these country areas for cheaper living. Don’t know how that will go! Apprently the cost price of these properties is on par with local prices….?
Will let you know how it goes this weekend.
Cheers
Walter.
Hi Lenny,When you say you heard they were under investigation do you know who by and where I could get details about this??
Thanks,
Chiara
Hi Chiara,
I recently came across this company via a friend of mine who purchased a property with them. I am actually taking the bus tour this weekend to find out more about it all. On the face of it, it does seem dodgy, but worth researching. For further info, they actually tack on 3% or a CPI figure each year on top of your 10%. The person I spoke to on the phone said that they make their profit through the rent. He was saying that there plan is to use pensioner’s and retirees from city locations, relocated to these country areas for cheaper living. Don’t know how that will go! Apprently the cost price of these properties is on par with local prices….?
Will let you know how it goes this weekend.
Cheers
Walter.Thanks Walter
I would love to know how you go.
Cheers,
ChiaraIt cant hurt to go on this bus trip,but be very careful where you buy.make sure you do your homework on the town/s in question.because some country towns arent rising very much,ive also seen some median prices drop by 16%.so make sure you are check very thoroughly. kimberley
Hi there,
I read this posts with interest. It’s a novel idea to be sure, but you leave yourself very vunerable packed into a van with other punters and a salesman. When you’ve had enough sales pitch, you can’t just say “Stop over here I want to get out!” (well maybe you could dial for a taxi).
Since I have been ‘burnt’ (so-to-speak) by a number of marketing companies (I should mention here that NOT ALL marketing companies are of questionable integrity), I now know, that any information I want, I should be able to call the company and ask for WRITTEN information, prospectus (or whatever they like to call it nowadays) to be sent to me and I read the little lines (which usually call for a magnifying glass) at the bottom of the page first. I then ask for the website and if they don’t have one, I still do a search for the name of the company on the net. Sometimes you find something, sometimes you don’t. Just be careful.
Cheers
Sooshie []“small steps make the journey” (SAS)
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