a better choice / abc financial group pty ltd

Chris / Jo

Just a simple question.

Is the Line of credit on your PPOR and an IO only loan on the IP… I assume this is the case hence the comment about a poor structured loan. Are the loans cross collateralised ?

And by the way not every lender calculates interest daily and charges it monthly…..

Chris,

There was no negative comments for you choosing to invest in the property market, as many people in this forum believe it is one of the greatest areas to see an investment go well.  Alot of the initial comments were more related to the telemarketing of companies.  Recently there has been alot of advertising posts on this site from first time posters where they come more from salesman for the company then actual investors.

From your origninal post it appears that you have been dealing with them for about 3 weeks and not sure if you or anyone else you know had known of this company prior to the telemarketer ringing you.  Many people on this forum will suggest when looking for a mortgage broker asking people who are already investing to recommend a broker that they have used before.  The first few weeks of dealing with a new company that is trying to sell you something should always smelly rosey as they are still trying to sell something.  Yes they will make it look like they are doing the best thing for you but they fail to mention just how much they profit from the deal.  It may not be until after you hand over the deposit, finalise the deal, go to the accountant at end of the FY or buy a 2nd IP that some investors may start to notice the lack of customer service or that the investment doesn't suit or that the finance wasn't setup correctly.

Please don't take offence to the questions and comments made as most people on this forum want to help all other members benefit from investing in property.  But there are alot of people in the property industry more interested in filling their own pockets at other peoples expense. 

Hey Jo and Hubby, we were in the same vote 18 months ago and were intrigued by the hotel suite investments which opened the door to  attend the property club seminars, they were very helpful and had  a mass of houses to choose from. they explained in full how we could do it. At some stage in the next 2 years we still intend to go through them with our 2nd investment purchase, but we have chosen with all our research and knowledge learnt to jump in by ourselves but using the tools they gave us. We are more than happy with our new house with great tennants and little cash up front. As soon as interest rates come down again our borrowing capacity should increase and we will do it again. All i can say is good luck but dont jump right in, spend a good 6 months looking around at the least until you understand all the pittfalls and positives. I guess the one thing that stopped us from getting into hotel investing was the capital growth in future  years is not great and at the end of the day we want the equity to reinvest. We are now looking for positive geared property maybe even in hotel rooms so that we can pay for the next investment.

good luck and dont listen to the negative nancies, you will meet them everywhere even in here.

mel

Hi Joanne

how are things going for you with the investment and ABC Finance and their service?

What has been failed to mention here also is the fact that if u dont live in melbourne they are asking for $395.00 to fly u over for a consultation!!!  me and my husband just had a person come to our house from this company and railroaded us into signing a form to take $395.00 from our credit card to fly us to melbourne for a consultation as they only do it in Melbourne.. Now after reading this i am very worried as im not sure i can get out of it and at all seems like it is a big scammmmmmmmmmm!!! 

Hello,

First and possibly last post, but I've been contacted by this group and seeing that it was this forum that helped me out with a bit of info on ABC Finance, I thought I'd give something back.

I got a call from ABC Finance to do market research (nothing being sold etc etc) and I went along with it – not entirely wise.. but no harm and I only gave generic info. They tell me at the end of the call that their supervisor may want to call and check to see that the rep had done the call, and I said fine (and this made it sound more legitimate for some reason)

When i get home today they were talking to my partner and had all but scheduled a time to come and visit us on an evening that week.

ugh!!

I got on the phone and tried to get more info so I could do some research but talk came back to how it would be better to go through it in person rather than over the phone, and that there wasn't anything they could send me etc etc. When I questioned them on why I was being called as I did not ask to be called back they said something around the first rep should have said there WOULD be a follow up call – but of course they still wanted to proceed.

This may be an awesome opportunity and its not for me to comment on the company or its products – but I'll pass thank you very much.

So there you go – thanks propertyinvesting.com for having some info, and hopefully my post will be of benefit to the next person who googles ABC finance

Hi charlieb11

As Joanne won't answer how has you time with ABC been going. I too have been approached by ABC recently. They told me that they got my name from my bank. Any one else heard of your bank passing on you name to these type of businesses.

Cheers

ABC, PREMIUM FINANCE SERVICES, PREMIUM CONSULTING GROUP, BOSTON ONE, OPTIMA EQUITY SOLUTIONS, JARDINE PACIFIC, SYNERGY PACIFIC, CARLY CRUTCHFIELD & CCORP ………….Need  go on!

ALL of these so called "Wealth Creation" companies (and there are buckets more of them) disguise their services as providing education and giving people the whole "Knowledge is Power" spruke when, the REALITY of what they do is they want to FLOG you one of THEIR DEVELOPMENTS and make tens of thousands of dollars in 'padding' to boot.
Have you also noticed they're all on the east coast (usually BrisVegas or Melbourne) and then fly people from all round Australia for a couple of hundred bucks to show you how you can pay off your home loan sooner, reduce your debts and be financially independent in retirement. How many of these companies, once they've flogged you that 'amazing' investment property they conveniently have, then truly continue to service you with their 'client for life' programs that usually cost you upwards of $5000?
C'mon people, wake up!

Recently my partner and I were contacted by ABC Financial Group.  They came to our home and talked to us about investment in another state.  My partner and I have some knowledge and understanding in investing as we currently have an investment property in residential.  This was advised to the sales consultant.  Unfortunately, it was not enough to convince the consultant as our investment was not in Melbourne.  After one and half hours of talking, we were then advised that the Company may be interested in discussing investment further with us but it would cost $395.00 to do so.  As we live in a regional area and both work and have children, we had to try and juggle our schedules as they would only give us 28 days to travel down to Melbourne, as the consultant would not get his commission.  Even though I was apprehensive about jumping and paying $395.00 to attend, my partner was interested to see if there was anything further we could learn.

During our meeting with the consultant, the usual questions were asked like, how much do you earn, how much in your super.  I had informed the consultant that I worked for the government and that my super was government controlled.  I had also advised the consultant that I really didn't think we were eligible at this stage.  He insisted that we pay even before we found out if we were or not.

Within a couple of days, we were advised that we were required to fly to Melbourne for the investment talk as we looked like potential candidates.

So on the day we flew down, had a lovely evening in Melbourne, stayed in a really nice motel and generally, yes, enjoyed some quality time together.

On the day of the meeting, we were greeted with a warm welcome from our driver, who we discovered also dealt with the property investment side of the business.  Upon arriving, we were greeted again warmly and moved into an office and was given the speel on how investments worked.  After an hour, our paperwork on our life was handed to another officer for her to review our financial situation.  After 20mins, we were advised that we weren't candidates for investment through their company and was told to go and enjoy Melbourne a little longer and we could come back at 3.00pm to be collected and delivered to the airport.

As much as I appreciate their honesty in advising, that due to other financial commitments, we would be living very tightly if we proceeded, what I didn't appreciate is the lack of review or research prior to us having to travel to Melbourne and paying for same and then made to feel like second class citizens when we just didn't meet the criteria. 

I agree with all that they are delivering and can see what they are trying to sell/suggest, as I said before, we are currently doing that ourselves already but in our regional area.  My only suggest is to this organisation and other organisations that work like this, may consider possibly obtaining more information from potential applicants ie. copies of super information either emailed or faxed, before they arrange flight bookings and charge a cost of $395.00.  It would probably source out more potential than non potential candidates, without a further cost to those that would be considered non potential.

For those that have the potential, go have a chat and gather as much information as you can but please do your research with your accountant before you sign the dotted line.

Hotel suites in my view is a bad investment. What you are talking about is something that will still cost you $130 per week. However the investment will have no capital growth. So you are loosing $130 per week for a product that will not go up in value. I am sure they sold you on negative gearing. This should be a secondary point. The investment need to stand on its own two feet. You should always do your own due diligence. You think you have a great investment however in time you will realize that you have brought a dud.

If you buy a property for $400,000 and one grows by 5% and the other growths by 10% and all you are going to do is hold for 20 years the difference on the end value is well over 1 Million dollars or around $80,000 PA. An investment like think you can still negatively gear and get great capital growth which is what will really create wealth.