Ladies and Gents
I am VERY! new to this. please don't ask me many questions as I won't be able to answer them. My property investment knowledge started 1 hr ago when I signed up to this webpage!
I currently earn a pretty good wage and apart from having a new SSV and a family, I don't own any investments!
My partner and I are using a financial advisor in Perth and he has recommended that we purchase an apartment in East Vic park also in Perth, Western Australia that are brand new and have not been released yet. We need to pay $2000 to become a VIP and we get to choose an apartment (Our choice) before the general public… I think thats how it works. This is our very first investment and we don't want to make the wrong choice. We are on good money as we both work on the mines in the Pilbara but don't want to be doing this forever. We want to get an income from owning property and hopefully with equity, purchase more as we go on.
I know your probably asking yourself right now, what is he asking us. Well I don't really know myself but I just want someone out there who is or has been in my situation to tell me if what we are doing is smart for a first property investment.
There are obviously a lot more questions we need answered before we even consider taking this on and 1 of my questions are, what should I be asking. I'm the type of person who will listen to the advisor and take there word and sign the dotted line thinking of course they are going to look after me! What do we need to know, what should I eb asking. Any help would be highly appreciated.
The advisor company is called focused finance. They sound really great and are in Perth. Has anyone heard or dealt with them before.
Thanks for your time!!
Matt
Hi Matt
Firstly welcome to the forum and congratulations on taking that first step to property ownership.
Look i hate to be negative when it comes to other Professionals but ask yourself why is he directly you to these new apartments. Would it be that he is receiving a healthy commission from the developer and you in turn are paying for it.
I am a financial adviser and more often than not direct my clients into property investment but never make bold suggestions about what they buy and where. Why do you need to pay to become a VIP.
There is nothing to stop you doing a little of your own research and buying something directly from the vendor.
Other question you need to consider is how am i going to finance it.
You mentioned that other than a new car you did not have any other investments. I am assuming that you will be using cash to cover your potential 10% deposit plus acqusition costs.
Do the numbers and speak to other investors first before rushing in and getting caught in the nasty web of two tiered marketing.
Richard Taylor | Australia's leading private lender
Their web page says they are a mortgage broker and now they're finding property for you? Follow Richard's advice. Learn a bit more before you sign up to someone. Look at the article on page 34 of August's Australian Property Investor magazine.
I feel that if I do my own researching and ask lots of questions and read books then I can find the best path and opportunities that suit me and my family rather than relying on others to tell me. Sure get some good financial advice but back it up with your own research.
I wouldn't restrict myself to Perth or what a business person suggests. You are obviously very new to this, so no need to rush, if you miss a great opportunity there is another just round the corner.
Read a few property books, spend some time on the net, you'll learn heaps!
Goodluck.
Hi Mat
It sounds to me like the opportunity they are trying to present you with is something they have come across themselves as investors, and they are trying to grab a $2k finders fee. I would do some more research and try to find out who the developer/builder is and see exactly what the go is. The mention of them making you a VIP member sounds dodgy. You should be able to choose what unit you want if it is available without any crazy status.
Having said all that. If you do want someone to point you in the right direction you are probably better off paying a buyers agent to find and negotiate on property, rather than someone trying to take advantage of you. It will cost you though, but a good one will save you more off the purchase price than what their fee is.
Good Luck!
Kurt (also in Perth)
mchutton,
as a fellow perthie i have also looked at East Vic Park for IP. There was some suburb report that came out a while ago which listed units in Vic park and East vic park as being good for future growth, whereas houses in these suburbs are already overpriced. there's loads of rentals, but a lot of the units there are old and rundown meaning the large rental market is driven by international residents and students. i'm not sure of the price of the apartments that you're looking at are, or the style of them, but i don't know what the rental demand for high priced trendy apartment would be and if you could find a good long term professional tenant. a good book i'm reading at the moment said never stray outside of 20% above/below the median suburb price as its harder to then sell or rent places at the bottom or top of the suburb.
if a financial advisor hands you a package on a plate for a fee which looks too good to be true, chances are it is. they will be taking their slice, along with the developer, both of which come out of your pocket. if you have the time to find a great deal yourself you should hopefully save some $$ !
good luck
McHutton
Welcome aboard. I started this journey a number of years ago and are pleased to be able to say I now work part time due to exactly what you are looking for, that is a passive income through real estate property.
I would love to work with you on your journey and help you get started. It may be closer than you think and you may be able to look at some great properties straight away. My details and what I do are below. Please feel free to email me and I will be more than willing to help you out..
I am also a buyers advocate and hope to give you some unbiased information. Cashflow Capital are a reputable company that locate positive cashflow property across Australia. They charge a fee of 2.2% of the purchase price negotiated.
Our company also does similar and charges a flat fee which is quite competitive. The difference you will find is that smaller companies such as ours locate properties specifically tailored to the client's profile whereas Cashflow Capital do not tailor their selections to specific clients.
If you are interested in locating a cashflow property buyers advocates can save you time by locating properties, providing important information including industry, rentability etc. and often also save you money due to relationships with agents across Australia.
I would be more than interested in chatting more and seeing if we can help you. Feel free to email me on [email protected] or call on 0423 052 513 and we can discuss.
Thanks
Simon
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