Hi all,
My wife and I recently attended a Park Trent seminar in Melbourne. It sounded good initially and like many other (mostly newbie) investors or people who are yet to invest we signed up for a home consultation. A nice gentleman came over to our house and by the end of the night we had signed up for 2 properties because they may be gone if we didn’t act fast. Yay. Ummm, no not really, although we did pay $110 (yes it has gone up..I blame the price of fish as sushi will be provided for lunch) for a tour of Melbourne’s hottest(my words not theirs) investment opportunities. So far the general knowledge of the both of us has increased thanks to Park Trent. For instance – I never knew of NRAS or that bank loans decrease as your Credit Card limits go up – even if you havent used any of the credit. So far so good. We already have investment properties which we accumulated slowly over time. We have researched quite alot yet are still in the early stages of deciding our next two investments. This was when we heard of PT. To be clear – we will not be making a decision on any property without going home and doing our own research. PT mentioned one apartment in Melb that looked too good to be true. Usually it always is
So I looked into one that was of interest.http://littlecollinshotel.com/ which is also http://buchan.com.au/projects/sheraton-hotel-melbourne/. I called the agents on both websites and neither had heard of PT being involved in these developments. Why? I also found the going rate which was the same as what PT offered. This may be a fluke although its a good start.
I also went to my bank and was suprised when I met with a positive response to PT’s victorian business.
So some things that I have found out about PT that others have stated the opposite on:::
-PT has asked and analysed our financial situation to see if we are good candidates for any of their offerings
-PT Answered my direct questions about how they make money via the scenario’s they were proposing. The answer was that they work with the developers(in the case of apartments off the plan) and take a 2.5% cut from the pie(they said from the developers pie in return for offloading quickly).
-PT offered a analysis of their offerings – they said some were good with fast capital growth but no long term rental projections as the area gets flooded with apartments.
-PT recommended we research ourselves. We did and still are.
-PT sent a followup email stating they need the standard financial details to assess if we can invest or not without being strained
-PT said they can offer us all broker services, accountants, conveyencers, real estate agents as part of their service package but that we are free to use whomever we wish on some(but not all – for instance the real estate agents)I am looking forward to meeting them soon and will remain sceptical yet open.
Cheers,
Standard and PoorHi standard and poor,
I am glad to hear that you remain open to what our consultants discuss, as that is all we ask of our clients. It is also good to see you do your own research, as this is the problem most new investors fall into as they do not consider all the information available before making a purchase. ParkTrent performs all necessary research into each development we sell and always encourage our clients to complete their own research to support their piece of mind.
I just wanted to clarify your point about the properties you were shown (in terms of the agents on the websites did not believe we were involved). The building in question is actually being developed as two separate sections; the bottom floors are being developed into a hotel, while the top levels are being sold as residential. ParkTrent was promoting the top level apartments, therefore the company which owns the hotel sections would have no knowledge of ParkTrent’s involvement.
The development is called 27 Little Collins, however we have stopped promoting the apartments for sale as they are almost completely sold.
I wish you luck in the future.
Thanks, Erin S.
Am I a bit cynical or does this post and the reply look like a bit of a set-up?
standard and poor wrote:Hi all, My wife and I recently attended a Park Trent seminar in Melbourne. It sounded good initially and like many other (mostly newbie) investors or people who are yet to invest we signed up for a home consultation. A nice gentleman came over to our house and by the end of the night we had signed up for 2 properties because they may be gone if we didn't act fast. Yay. Ummm, no not really, although we did pay $110 (yes it has gone up..I blame the price of fish as sushi will be provided for lunch) for a tour of Melbourne's hottest(my words not theirs) investment opportunities. So far the general knowledge of the both of us has increased thanks to Park Trent. For instance – I never knew of NRAS or that bank loans decrease as your Credit Card limits go up – even if you havent used any of the credit. So far so good. We already have investment properties which we accumulated slowly over time. We have researched quite alot yet are still in the early stages of deciding our next two investments. This was when we heard of PT. To be clear – we will not be making a decision on any property without going home and doing our own research. PT mentioned one apartment in Melb that looked too good to be true. Usually it always is So I looked into one that was of interest. http://littlecollinshotel.com/ which is also http://buchan.com.au/projects/sheraton-hotel-melbourne/. I called the agents on both websites and neither had heard of PT being involved in these developments. Why? I also found the going rate which was the same as what PT offered. This may be a fluke although its a good start. I also went to my bank and was suprised when I met with a positive response to PT's victorian business. So some things that I have found out about PT that others have stated the opposite on::: -PT has asked and analysed our financial situation to see if we are good candidates for any of their offerings -PT Answered my direct questions about how they make money via the scenario's they were proposing. The answer was that they work with the developers(in the case of apartments off the plan) and take a 2.5% cut from the pie(they said from the developers pie in return for offloading quickly). -PT offered a analysis of their offerings – they said some were good with fast capital growth but no long term rental projections as the area gets flooded with apartments. -PT recommended we research ourselves. We did and still are. -PT sent a followup email stating they need the standard financial details to assess if we can invest or not without being strained -PT said they can offer us all broker services, accountants, conveyencers, real estate agents as part of their service package but that we are free to use whomever we wish on some(but not all – for instance the real estate agents) I am looking forward to meeting them soon and will remain sceptical yet open. Cheers, Standard and PoorFirst time poster praising the company on a thread filled with negative comments!? This must be a first.
Not to mention the convenient links to the property which is apparently 'too good to be true' and 'almost completely sold'!
Haha this company must be dodgy to have to go to lengths like this.
nguli wrote:First time poster praising the company on a thread filled with negative comments!? This must be a first.
Not to mention the convenient links to the property which is apparently 'too good to be true' and 'almost completely sold'!
Haha this company must be dodgy to have to go to lengths like this.
Maybe you are too cynical – but its ok – I am cynical also – we all should be on the interwebs.
Anyway – we did go to the PT office and it was a pretty hard sell that they were pushing but nothing was really attractive enough to us and all the properties they showed us in NRAS seemed very questionable with regards to the cost and area they were being offered in. We did our due diligence and the result was that we can find better deals out in the wild blue yonder than what PT were offering to us.
Regarding the hard sell – well it wasnt the actual sales person – he was very reasonable and very knowledgable and answered all our questions frankly. It was the whole manner of “we only have x left” and “whoops – that property is no longer available” which actually happened during our time there. I called the other resellers of one appartment (Colliers) and it was actually true(there was only a few left) but the other apartments details were all cloaked in uncertainty. Their were so many positives verbally but when we pushed harder we found that the answers started wearing thin. For instance when we asked about the rental guarantees we found out that the boss Ron Cross (not sure if the name is right – i did a google and he has a pretty bad rep hahah) had to sign off on them to be honoured which seemed very suspect that the person dealing with us couldnt honour the companies advertised guarantee. What if we didnt push? Would we be without a guarantee??
I found that they are certainly not for us and would probably make sense for oversease investors who are happy with the guarantees, management overheads and guidance. These are all things that you pay for and PT seem worthwhile if you cant do all that yourself.
So to make a long story short – not for us – and we will keep looking. Currently we are looking at a house in the burbs and a apartment in the city. I might post on some initial thoughts after we check them out.
ErinS wrote:Hi standard and poor,I am glad to hear that you remain open to what our consultants discuss, as that is all we ask of our clients. It is also good to see you do your own research, as this is the problem most new investors fall into as they do not consider all the information available before making a purchase. ParkTrent performs all necessary research into each development we sell and always encourage our clients to complete their own research to support their piece of mind.
I just wanted to clarify your point about the properties you were shown (in terms of the agents on the websites did not believe we were involved). The building in question is actually being developed as two separate sections; the bottom floors are being developed into a hotel, while the top levels are being sold as residential. ParkTrent was promoting the top level apartments, therefore the company which owns the hotel sections would have no knowledge of ParkTrent’s involvement.
The development is called 27 Little Collins, however we have stopped promoting the apartments for sale as they are almost completely sold.
I wish you luck in the future.
Thanks, Erin S.
PT were not the exclusive seller. Which was alluded to initially. I also called and visited all apartment buildings in south yarra that PT were supposedly involved in and the same comment was fed back to me each time. Infact one did mention that PT were involved 2 years ago but he didnt know why they moved on. So i could be wrong…
This makes me think that PT are simply resellers that are not involved at the developement stage and would make sense as to why the % overheads(not including management/sourcing) are present.
If you want me to name names and places then I definately can but see no reason to slander someone with here say when it is plainly obvious tht PT tke apartments and pump up the prices slightly to cover their internal staffing overheads and to make a slight profit. This is the same as all retailers be it ones selling pork pies or underwear.
Its business and PT are in it for a buck.
Its not for me and my wife though. Thanks for your reply and for the info as to the actual number of the Little Collins St apartments – even though I provided a direct link to it stating its number. The clarification was appreciated.
Cheers,
S&PMy apologies S&P. I obviously jumped the gun on that one.
All the best with your property hunting and look forward to seeing you around the forums
Cheers,
Nathan
and your question WAS
look at the replied or should say tried to reply post and their is your answermcgrandles wrote:and your question WAS
look at the replied or should say tried to reply post and their is your answer???
I can’t understand that sentence
nguli wrote:My apologies S&P. I obviously jumped the gun on that one.All the best with your property hunting and look forward to seeing you around the forums
Cheers,
Nathan
Thanks Nathan – it’s all good. I don’t take offense to internet posts. hahah
I am currently looking to post a few questions that are confusing me at the moment. I will tomorrow.
devanathv wrote:Hi LeonieI have dealt with(and am dealing with) Park Trent properties over the last 9 months. Before I give more detail, you can search for ParkTrent or Park Trent in these posts – you will get some entries from a year or so ago. Anyway, they are a Woollongong based group, have been around for several(20 from memory) years, and my dealings have been reasonably good. I bought a H&L package in Ningi, QLD, the house is under construction currently. Like with these things, do your sums and negotiate. Other than that, they came across as reasonably professional and no dramas up to this stage. Let me know if you need to talk.
cheers
Hi Devanathv
My partner is currently dealing with Parktrent and is actually looking to pull out of the deal as he has had the property valued and it came in under (property is in QLD and has not yet commenced construction). His contract is apparently "unconditionally approved" but the land is not yet registered, do you happen to know if he can pull out without paying 10%? Also, when you got your first home and land package, did the valuation come in under the amount that you had paid for? The home and land package my partner signed up for cost $346K. The valuation had come in at about $30K less (not sure exactly). Did this happen to you also? Is this normal from your experience? This is very stressful for him, I am just trying to get as much information from people who have dealt with PartTrent, they were very pushy when he first saw them down in Wollongong a few months ago now.
Are you able to email me by any chance your response?
PS, anyone else reading this, please feel free to contact me if you know any information about Parktrent that could help us
Cheers!
Dear kimbooo89,
The valuation of your property is indicated by your bank, and you have said that it has come in as 30k under purchase price.
Please understand at this point in time ALL properties in Queensland are being valued at under replacement cost. Primarily, this issue of valuations has been bought about by the unfortunate event of the floods experienced 12 months ago. Values of properties in and around flood areas are losing value, which has greatly affected Valuers Indemnity Insurance. In a number of cases indemnity insurance has been cancelled.
Therefore valuers are now displaying extreme caution when valuing properties in Queensland.
Please note that we are confident this does not affect the 'value for money' property you have purchased. If you analyse and calculate your purchase from a micro level you will discover that it is impossible to build the dwelling for the stated valuation price. Don't forget to include the land value.
I will have our customer service manager contact you on Monday, and I will also supply you with some hard copy data that supports the above.
We are here to support you through every step of your transaction.
Sincerely,
Erin
Hi Erin
Please understand at this point in time ALL properties in Queensland are being valued at under replacement cost
Sorry but that statement is clearly not true and is highly deceptive and misleading to potential investors.
We arrange valuations on around 140 properties a year many of them of which are brand new and certainly this is not the case. I have been involved in the industry for over 25 years both here and in the UK and i not sure whether this is the feedback you get on the properties you are marketing but certainly it is not on any of the stock we are involved.
Sorry but as i say your statement is totally false.
If the property has been downvalued by that amount i think it should tell the purchaser something about the price.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
To all Investors planning to invest in Park Trent,
My experience with Park Trent was is the biggest mistake I have ever done when it comes to making money. I was sucked in by their agents who promise high rental yield and capital growth. Anyways I come to their Wollongong office to see what they can offer and the agents works out my financial situation etc… shows me a property saying that the rent would be around 6.5% yield and promising that the property will double within 7 years time.
And then I said ill come back and think about it, so the agent then said its the last one they have available on that area I signed the contract when in fact I was one of the first one to purchase in that estate. So I did more research and found that some other developers are also building new estates around the area whichs sells for less and much more superior overall (land size, house quality etc.). In my reserach. I also found out that the property is worth $100,000 less of what I paid for. In addition i kept asking the broker why my LMI is so expensive when in fact I had equity on currnet house. I ask the broker and he replies with "the bank works it out". He knew why it was, because it was $100,000 short. Banks may be conservative but $100,000 is very conservative.
Currently the property is vacant and the capital growth last year was -7%.
In conclusion, do your own research, get your own solicitor and broker not the ones that work for parktrent saying that its easier because everything is at one place and read the contract before signing it because their contracts are UNCONDITIONAL.
YOU DECIDE IF INVESTING IN PARKTRENT IS GOOD FOR YOU!!
To previous comment above the property was valued $100,000 less than the purchase price.
Coriander wrote:To all who have been stung by Park Trent,I believe the only way to get authorities like the ACCC etc… to pay attention is through group action. We need to get all the information we individually have on this company and make a formal (and combined) complaint. A good lawyer needs to be consulted – hopefully at not too much extra costs as I am sure that everyone (like us) has lost far too much money already – however good legal advice is definately needed if we are to succeed.
Anyone who is interested in contacting me can do so at: [email protected]
I have already been in contact with DParkes and we have very similar stories, there must be others out there. I am involved in the D2 student accommodation building in Melbourne, however anyone who is involved with Park Trent should be able to lodge a complaint.
I was thinking of the same thing I started gathering information, facts and personal experience from others. Im currently seeking legal actions. <moderator: delete personal comment>. When I was at his wollongong office they were bragging out on how much he makes a week. Have some conscience, karma will bite you back!
Qlds007 wrote:Hi ErinPlease understand at this point in time ALL properties in Queensland are being valued at under replacement cost
Sorry but that statement is clearly not true and is highly deceptive and misleading to potential investors.
We arrange valuations on around 140 properties a year many of them of which are brand new and certainly this is not the case. I have been involved in the industry for over 25 years both here and in the UK and i not sure whether this is the feedback you get on the properties you are marketing but certainly it is not on any of the stock we are involved.
Sorry but as i say your statement is totally false.
If the property has been downvalued by that amount i think it should tell the purchaser something about the price.
Cheers
Yours in Finance
Dear Qlds007,As you must know property valuers are a lot more conservative now than they were a few years ago. With the GFC hitting and of course the floods adversely affected property prices in Queensland and Brisbane specifically, we are only now starting to see the market stabilise.
Of course property valuers are nervous and are under-valuing properties in Queensland by up to 30 per cent!We don’t expect you to take our word for it – rather, we have some articles here for your perusal that back up what we are saying:
Australian Financial Review – 13th October 2011
Your Investment Property Magazine – February 2012
Weekend Australian Financial Review – 22nd-27th December 2011ParkTrent Properties Group will continue to stand by the fact that we market and sell all our properties at fair and reasonable market related prices. Further to this, our clients are not forced into anything and are free to get their own independent evaluations (in fact we encourage it).
Regards,
Erin
Sorry Erin but living, working and investing in Brisbane and SE Qld i still have to refute your statement as clearly inaccurate and untrue.
I discuss deals with valuers all day long and i am sorry the facts dont back up that statement dispite throwing the odd out of context media comment into the mix.
You go ahead believing that and advising your investor clients accordingly and i will go ahead acting in my clients best interest and securing them investment properties that value at purchase price.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Sorry Erin but living, working and investing in Brisbane and SE Qld i still have to refute your statement as clearly inaccurate and untrue.I discuss deals with valuers all day long and i am sorry the facts dont back up that statement dispite throwing the odd out of context media comment into the mix.
You go ahead believing that and advising your investor clients accordingly and i will go ahead acting in my clients best interest and securing them investment properties that value at purchase price.
Cheers
Yours in Finance
I might put my two cents in here also if I may… whilst we deal with regional QLD mainly, we had not one deal come in below valuation last year. The claim that ALL values are below is false, regardless of a couple of articles you may past Erin.
In reality, if you are selling a house and land package also, there should be some instant equity (maybe not a lot) once construction has finished. That is if you are selling in areas that are growing in value.
So I looked into one that was of interest.
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