Has anyone heard of The Domain Charter Group? They are a real estate agency that only deals in investment properties. From what I can understand, all their properties are ‘off the plan’.
[worried]tuppence
Nope, more info??
cheers
Brendan Heagney
Mortgage Broker
07 3240 4815I’m not 100% sure but they help you to purchase a property from their portfolio and then they manage it like a real estate agent. They offer to pay the rent if the property is left vacant for more than 4 weeks. After the 4 weeks they will start to pay the rent.
Have a look at their website, ‘domaincharter.com.au’
tuppence
I haven’t heard of them so could be good or bad. things to look out for though: what is the property management fee? how much extra are you paying in either (a) the purchase price or (b) the management fee in order to get the rent guarantee. If you decide to proceed and get to the point of having selected a property, satisfy yourself that the property is fair value compared to the rest of the market… do not just accept their valuation.
Extensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
generally speaking i believe that of the plan is a bit of a trap with IP’s. Do they give you a date for how long they will pay rent? and for how many years it is valid? I have seen cases where you are gaurenteed 9% on your investment for the first two years. and after that you are left with a house that is un rentabal and which you paid to much for.
“Earn money every time someone pays their phone bill” ask me how http://www.redapplepartners.com/brett
There is no fee for the 4 week protection, they charge 7.5% to manage the property.
The example I have been given shows the weekly payment to be $110 on a $300k property.
$10k for Acquisition costs (stamp duty, legals, title searches/outlays, body corporate, insurance) and Deductible items (legals, search fees, valuations, mortgage insurance, establishment fees, stamp duty – mortgage, procurement fee.
Cash Flow weekly rental income $250 – $12500
cash exp (loan int, council rates, management fee, insurance) $24900
short fall $12400non cash deductions (bldg depreciation, chattell depreciation, borrowing costs) $8150
total deductible $20550
Based on an income of $55k the tax payable would be $13380. However with the above deductible the new tax payable would be $6680 thus giving us $6700 to use against the short fall amount of $12400 leaving $5700 to be paid by us on a weekly basis of $110.
These figures are all estimates and used only as an examply by Domain Charter grp. The following professionals are prefered by Domain Charter.
MM&R – Jeff Tait (Lawyer)
DAYTONS – Michael Coleman (Business & Property Tax Advisors) DirectorAny advice or questions I can ask them at our next meeting would be greatly appreciated.
tuppence
Hi Tuppence,
A couple of quick things come to my attention the website is copyrighted 2003 which suggests they haven’t been in business long and, unless things have changed in the last two years I am not sure that Jan Somers would like her story on the website – Jan and Ian were passionate about not being seen to support or endorse any group or organisation.
Some thoughts for you to consider.
1. How long have Domain been in business?
2. How many investment properties does your ‘consultant’ own?
3. How long has your consultant been investing?
4. How does your ‘consultant’ earn their money?
5. What will they get out of each and every purchase?
6. What service do they offer?
7. How much does it cost to use each aspect of their operations?
8. Can you use your own mortgage lender? property manager? valuer? If not – why not (it is a free world)?
9. What sort of after sales support do you get?
10. Does their approach fit comfortably with you?
11. How much pressure is bought to bear?
12. Are all decisions made in Domains’s presence?
13. Are there rent guarantees? (Investigate thoroughly – if there are!)
14. How does the price compare to similar properties on the open market?
15. ASIC/ Ministry of Fair Trading Issues?
16. Where have Domain’s past sales been? What were they? How much is the open market paying for them now? What are they rented for now?
17. What are similar properties (to the one being considered) renting for? Check with a couple of REA in the area?
18. What is the vacancy rate in the area like?
19. What infrastructure is planned for the area?
20. Are brochures high on ‘gloss’ and ‘glitz’ and low on facts?Just a few to get you started.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
wow Derek – all i wanted to say imho was someones gonna get #%&*$%@# over here, but you have been so polite…well done.
cheers
Brendan Heagney
Mortgage Broker
07 3240 4815WOW!
Thanks Derek, I’m glad I posted this question. You’ve certainly given me alot to research and think about. [bigeyes]tuppence
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