Hi members,
I hope someone can provide some advice. I've got a colleague who is insisting I should consider an organisation named 'Investment Club' – they basically claim to help their members secure investment properties in 'hot locations' across Australia using none of your own personal cash, other than the equity in your existing home to secure another property and having it partly paid off with a good rent – in terms of solicitor's fee, etc, etc they cover it all. As well as provide financial advice, refinance etc.
Of course, there's way more to the nuts and bolts of this company, but as I only read some of the documents and not attended any of the talks, I'd like to hear from anyone who knows something about IC.
My colleague is about to buy her first investment property in QLD (so she's fairly new – only 6 mths with them), and claims IC are going to reimburse their travel costs too.
Sounds too good??? I can't help but recall Steve McKnight's words on 89.9 Light FM: If it sounds too good to be true, then it probably is……..
is this one of those times???
any advice would be appreciated,
many thanksI have never heard of them, but what I have heard of investment clubs is that sometimes they are just developer's outfits masquerading as an investment club.
They get you to buy their stock, and of course; you don't know that it is their over-priced stock you are buying.
Keep your antenna way up.Investors Club is not a "Club" as such, it is a marketing company. If you buy through them your collegue will likely get a commission for introducing you, you should investigate this. I have no opinion as to whether they are any good or not, but use the search function on the form and you will find a lot of discussion about them.
Regards
AlistairHello Diego,
I agree with both of the above comments. The term 'club' is misleading as it portrays that you'll be looked after. In my opinion though (and I know of people who have been left with investments they wish they hadn't gotten into) as Mark suggests, these companies are selling developers stock. The danger is that you will pay more than what the properties worth when you buy.
Be careful!
Dan
Your better off educating yourself so that you know what you are looking for and how to value properties. Many of these clubs add a mark up to properties they sell. If you need to try an INDEPENDENT buyer's agent that is not selling properties for anyone but looking in the wider market just for you.
Hi,
I purchased through the Investors Club and have been nothing short of delighted with my purchase. I purchased a townhouse 2 years ago at $232,000. One of the same designed townhouses in the complex just sold for $298,000 2 doors down. Just ensure you do your due diligence when purchasing. They are fantastic for people who have little idea in what they are doing as they help you every step of the way and you can always call on them if you need help in anything about investing in property. Also the after sales service is excellent as well as they help you find tenants, QS reports and a host of other things that alot of people just don't know about when investing. And yes, they do get paid for it but this is well known to anyone that is purchasing through the IC. They even mention this at their workshops so it's not unknown.
All I can say is check the body corp fees and Personally I wouldn't buy anything that has an elevator in the complex. That's a huge expense that will never go away. Also they don't just sell new property developements, they also sell used property. I know myself, if it wasn't for the IC, I still would be at home looking at property everyday on the websites too scared to purchase anything just in case I did the wrong thing. Just ensure you do all your homework and research throughout the internet, especially with forums like this.
I know alot of experienced property investors may say do it on your own etc. , and maybe their right, but some of us need a helping hand and just that extra person who has the knowledge to help you purchase your property and give you the confidence to do something instead of procrastinating all day because your too scared to jump in to the huge property investing world.
Shane
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