I've just read all the posts to this thread and must say that I am very confused. On one hand we have a few people saying that they are very happy with Premium Finance while the majority (in particular Richard Taylor) bagging them.
If they are as good as some people say they are, we could be missing out on the services of a great organisation. On the other hand, if Premium Finance are spruikers then people like Richard may have done all of us a favour.
The question I'm asking is: what criteria do people use when deciding on financier? From what I've read so far on this post, the criteria a lot of people use is based on heresay, cynicism, "feeling", opinions of a few people on a forum.
Hi Rudra, if your IP is costing you $200 pw then it's costing you $10000+ per year. Couldn't you have found a property on realestate.com for that money? Plus if you put in 20%, then it's costing you more than $10000 p.a.
Your IP better have good cap gains.
KY
Hei rudra
Let me tell you..
…" They haven't put me under a sea of debt, and costing $200 pw"….You are losing at least A$10k /year… lucky if you are on the top marginal rate earning 180k plus
You have to pray that your property will have massive capital gain in the next few years (i.e.. against the odds)..
Well… the worst scenario is… property price will drop by 20% (realistic) and 10k/year .. that is called the "PREMIUM INVESTMENT"
Hello all very funny post,
Firstly who is the builder they are using … ?
Secondly what are the names of the sales people advising investing in property and I will give the link to have them checked out for you.
Thirdly who are the directors and are they liciensed to give financial advise to sell investment properties?
What is their financial services licience number.
Lastly ANY person buying real estate and getting advise from unliciensed people deserve to be conned and desereve to lose your money … caveat emptor.
Really people are you that stupid … listen to experienced people here … you can buy a cheaper property 6 months old in the same street and get the same tax benefits and save $40,000.00 in two tiered fees, go to realestate.com.au or Domain …
I can't believe people are so DUMB to believe an UNLICIENSED sales advisor – just report their names to the department of fair trading and remember
THEY ARE FINANCIALLY LIABLE FOR ANY FINANCIAL LOSS "AT LAW"
D
I remember the days of free flights to Queensland to meet with companys like this. I thought this practice had been banned. The IP's were greatly overpriced, and the full day, high pressure sales pitches, by the end of the day, people were tired so signed !! Can you believe it?
A friend bought one and later found found he had paid about $25,000 too much. I am sure this was in the 80's. Sounds so similar.
wealth4life you are so right "you CAN buy a cheaper property 6 months old in the same street and get the same tax benefits and save $40,000.00 in two tiered fees"
Really, if you are just wanting a no problems buy and rent, go to Defense Housing, pay a bit more for the stock but genuine guaranteed rents for years.Hey everyone,
Firstly we did get an independent valuation of the property we bought as we know all about West Point and Storm Financial. The valuation was above what we paid. We put a 10% deposit down on the property and used equity in our current house to get this. We did look on realestate.com about a year ago for properties in Logan (where we live) as we were new to investing we wanted to invest close to home for a bit of reassurance and because we knew the market in our area. We found properties and even put offers in, we decided to go through a mortgage broker to give us easiest option of finding the best loan but found they were useless and gave us the worst advice possible. At this point we decided to give it a break and wait a year, at this point we decided to see an accountant, who had been recommended to us by quite a few people, to see how we should be setting up our finances when we buy an IP. Our accountant actually recommended us to Premium Finance and he said he had examined their books and what they did and was happy with what they offered. Given his reputation we trusted him and made an appointment to see them.
As for the loss of 10k a year, this doesn’t phase me at all. I understand what you are saying that if I was expecting to sell in the next few years I would need massive captial gains. But I’m not expecting to sell in the next few years, I want to hold onto my property for at the very least 10 years and then decide.
As I said I’m happy with the service I was provided by Premium Finance and with the investment property I purchased. I have no doubts that some people will not have had a good experience and that some people will not agree with the way I went about investing in property, but it has worked for me. However I have made note of everyones opinions and suggestions and will definately take them into consideration when I purchase my next property.
G,Day Everyone
Had a visit from premium finance last year after receiving a phone call from them – not sure how they sourced my phone number. Remember being impressed by the figures they presented me with and the offer of showing me a number of properties in Brisbane that I maybe interested in. I didn't take up their offer though to much of a sceptic and seen to many stories of people being burnt before.
My point is educate yourself about property investing read lots of books, internet, investment magizines – look at relevant statistics that may relate to your decision for purchasing a property and listen to what experts ( people that have a substantial property portfolio) have to say. Then if things go wrong you can kick your own ass for making the wrong decision rather than blaming a third party. If things go right which they should if you have done your homework then you can listen to your friends and family tell you how well you have done when they thought you a fool for the risk you were takin. NOT sure if I have to kick myself yet – I do respect and trust my accountant.
we need help we are a family mom dad and 5 kids we have 50k deposit and have put a deposit on a property ,,sale price of 110k …we are on a pension and get 1915.96 per f/night ..we need 60k ….we dont qualify for bank finance ….we can pay 350 per week …..we have been renting at 350 per week for many years ….the property we are trying to buy is able to generate at least 300 per week …we would pay any monies we make straight of the loan ..we own a toyota parado 2004 grande ..and a 1996 musso combined value at 50k ..we would sell when we got over to our new place in wa …we dont wont to sell them in a fire sale as we wouldnt get true value …monies for car sales would be paid of loan …we have our freinds comming with us and thay can pay 200 p/week which makes weekly paments at a min of 550 per week ..we are eligable for the 14k first home buyers grant ..that will be paid of the loan asap …we also have a 1988 isusu furnature truck that is worth at least 10k we will sell that as soon as we move over to wa ..we dont wont to sell till then as we would then have to pay for a removalist and thay quoted 8.5k ….pleas help ///////ph paul 0408819344 …ps can pay 15 % interest
I wouldn't be so very concerned about what new posters say, you have to have your first post sometime and you have to have found your way to this forum somehow.
This is my first post, I got here because I'm a Mortgage Broker and I saw that Premium Finance was advertising for brokers to work for them and this forum turned up as part of my due diligence.
So, I have a short term (2 years) positive geared investment vehicle with a good payout at the end; where can I go to tell people about it without being blasted as a first time poster?
Don't know if anyone will even read this, post has been dead for awhile and I lost interest a fair while ago, just for the record I have been advised by a financial planner to dump the property I have purchased through premium take a 50k + loss sell my other home in cairns and start again, the property has not worked for me at all I paid way to much for it , the the property doesn,t work for you unless you get the return weekly through a tax variation, due to interest rate fluctuations during the GFC this resulted in me having to pay quite a large ammount back to the tax dept, basically we borred the max used all the equity in the other property and it didn't take long for the dominoes to fall, my fault I know but thats how they make thier money out of naive people like myself, in summary do the research and do it yourself you don't need them to find a property or organise finance, the interest rate they got me was no different to the one I got for myself, the house was never supposed to be tied up with my own property and it was, I think the only thing they had with the people that gave me a loan was perhaps that it probably wouldn't have stacked up with most banks, the one they used ABF is now out of buisness and the loan was taken over by ING. Out of 10 I give them 0.
Bluedog
Really sorry to read of your pain but i am not suprised.
I will be careful what i say but i think your post should prove a warning for other thinking about using such organisations.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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