Sorry if i have asked this question before just can’t seem to find an answer.
I have been qouted a fee by a property buyer but they will only be finding properties not acting in any other matters as my solicitors will be handling all other matters,can someone give a response on the following fee structure.Sign on fee $25000
Finding fee $5000*5 properties i.e $25000A total of $50000 for finding 5 properties anythoughts please.
Hi Mgr,
$25K even if you buy nothing through them?
Geez – that is an incentive to buy their property if I have ever seen one.
All in all you gotta admit $50K would buy a lot of property – as it stands at the moment you are spending a non-deductible $50K on property to the value of ???????
In a word – expensive.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
I was told i would need to spend at least $200000 per IP property to get a return that justified the expenditure,this is in queensland the first property was a townhouse 3bed and it was priced at $325000.I was told that i would not be able to find a property for less than $150000.
Are you saying $50000 will buy property if this is true i have been a total fool.
Thanks for your reply.
Seems an awful lot of money to be paying in what seems to be becoming a buyers market.
i hope they find you some very special deals for that money.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
HI Mgr,
To me you really need to step back from what is being said and determine what you want to achieve from property. This will really help you to identify the property that is right for you.
I would be very interested in hearing ‘the return that justified the expenditure.’ You may also be interested to know that there are properties priced less than $150K, whether they are investments consistent with your goals and plans that is another matter.
Consider this – $50K would pay for 15% of the $325K property you were looking at. As such your hard earned would be more effectively directed towards purchasing a property – after all $50K is the same as the average annual wage in Australia at the moment.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
The return to me seems terible the property was $325000 they wanted to put me in with a tenant at $300 per week $15600pa less expenses which is a return of less than 5% before taking into account expenses.This is in the Redcliffe area of north brisbane on a townhouse 3bed 250m from the bay and coast.
Hi Mgr,
Remember return is but one aspect of property investment – and while the return may be ‘terrible’ the other side of the equation is that you are 250 m from the bay and as such over the long term capital growth is likely to be very good.
Whether this is ‘affordable’ and suits your goals only you are in a position to know that.
I would also be interested in knowing whether or not you are ‘obligated’ to purchase five properties through ‘them’ – your opening comments discussed a $25K joining fee and 5 X $5K – I assume this was an example only.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
The long term Cap gains should be good i agree.
Once signed up the arrangement is openended and if you find and purchase a property from another source your obligated to pay them the $5000 still up until you have purchased 5 properties.
Originally posted by mgr:Once signed up the arrangement is openended and if you find and purchase a property from another source your obligated to pay them the $5000 still up until you have purchased 5 properties.
Hi Mgr,
Irrespective of how good an investment this Redcliffe property is – this clause/requirement by itself is enough reason to cease immediate contact with them.
After all we do live in a free world and if you find a good property you should be able to go out and buy it without paying a third party $5K when they have done nothing.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Mgr,
My thoughts you would be crazy to pay someone else 50k to find you some properties.
I bought in redcliffe a few years back and yes it is a great place. It really is not that hard, get yourself on a plane if you are not a local spend a few days there, inspect every property in your price range, make some offers (negotiate hard), speak to the locals, the agents the councils town planner. I did it 4 years ago and couldn´t be happier with the results. Going through the exercise also taught me so much that I have gone on to get some great deals!
You have it in you.
I know quite a few agents in town if you want email me and I can send you some contact details for some honest agents.
[email protected]Good luck.
KarinaHi Mgr,
One other point – have you signed a ‘contract’ with the organisation?
If so, a discussion with MOFT Queensland may be worth it and/or a discussion with a solicitor.
My laymans understanding of law is that the agreement is ‘restrictive’ and as such would be outside the restrictive trades practices act (if that act still exists) or something similar that covers such transactions.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
mgr.. empower yourself! hehe- I just said that because I saw tony robbins- hehe. Seriously, you must have heaps of money to spend if you are going to spend 50k on “add-ons”… as Derek said, this expense is non-tax deductible, and it doesn’t mean the property is worth more than you’re paying for it… generally, the “discount” or “wholesale” property spiel is bollocks.
If you want to start checking out RE (I know you’re overseas), look at realestate.com.au and go to the Australian map, then the Qld map and click on Redcliffe… then ring up some real estates and ask them about the area.
Also, make sure you get idependent valuations done. It seems the marketeers are alive and well… now they just call themselves buyers’ agents.
You can find out everything you need to know on the internet- everything about aussie real estate. Redcliffe has had substantial growth, but as you’d be aware growth is slowing everywhere, and you’ll be paying top dollar if you’re coming in to a market that has peaked. Redlands has also had a reputation as being a depressed area.. but it’s advantage is the coastal location. But when you buy into a depressed area, remember that rents may not be as good as first thought, because of the low income renters’ pool.
It’s obviously up to you, but I would be exptremely cautious for all the reasons others have mentioned. I think you can’t beat independence. If you read *everything* on the net about areas, and you spend a few bucks calling RE agents who have no interest in a particular property, and then you fly over and spend some time in the area… well, you’d still be saving tens of thousands.
kay henry
Hi Derek it sounds like i have been lucky my solicitors stopped me from signing the contracts.
Kay have done all you said i have been using the sites you mentioned for a year now and doing all the research i was ging to purchase some new developments in Redlands but was advised against this by the agent who i was talking to in this post,they said redlands was a single mother/drop out zone filled with the dregs paid for by the welfare system.
Seems a bit unfair to me as i have never had trouble renting to single parents etc over here in fact as they tend to need the property more they tend to be more reliable and careful than the so called middle class market who can just get up and go and tend not to take as much care about the property.Hi,
I’d gladly pay $5k for a property with positive cashflow meeting my requirements.
I guess value is in the eyes of the beholding investor!
Due your research but expect to pay if you don’t have the time to find deals for yourself.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Steve,
Understand where you are coming from but (there is always a but) to pay $25K and then $5k for the next five properties even if they are self located.
Seems a ‘little’ over the top to me.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
mgr,
You mentioned that the rental return was estimated to be $300 a week. If the area is a low socio-economic area, then people on benefits couldn’t afford those kind of rents- it’s not possible to pay that on a benefit.
I am not sure about lower income people being better payers than higher income people. I think it depends on individuals really. I do know that beneficiaries HAVE to be very careful about where each dollar goes, whereas higher income earners have other resources to fall back on.
kay henry
Sorry Kay the $300 was the rental return on the redcliffe property which the agent refered to as upper market.
The other remarks where made by the agent about redlands there was no rental return given for that area,the remarks about the different social groups was the opinion of the agent i have found that the lower paid etc tend to take more care of what and where they rent as it is needed more than middle class renters but that is only what i have found.
Sorry mgr- I typo’ed and wrote redlands, when I mean redcliffe- it (Redcliffe) really isn’t an upmarket area, but it is gentrifying, I guess.
Here’s a couple of articles about RE in redcliffe:
http://afr.com/articles/2003/11/20/1069027250381.html
http://www.domain.com.au/public/Article.aspx?a=articles/2004/08/09/1091903483611.html
kay henry
Thanks for that info Kay great reading,i have just gone through realestate.com.au in redcliffe and found some of the examples the agent sent about his properties in redcliffe on the site they are cheaper on realestate.com.au by around $50000 but they all seem to be with the same developer Remax.
mgr,
Seeing you’re overseas, you might want to know what other Aussies might know- just work out your legal position if you buy from Remax agents… some of them don’t have RE licences (they’re independent contractors). Seeing you’re so far away, I guess you want to be certain about such stuff. Check out the article below:
http://www.theaustralian.news.com.au/printpage/0,5942,10393933,00.html
kay henry
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