I was recently cold canvassed via the telephone by "Australian Property Directions" re an investment property. I have had several sessions with them and have now been to view various sites. My next step is to sign up to build.
As this is my first investment and I don't really know anything about them, I am a little nervous about taking the plunge. If anyone has had experience dealing with this particular company, could you please give me some feed back.
Cheers,
Ernie
Hi Ernie
Firstly welcome to the forum and I hope you enjoy your time with us.
You have to ask yourself how did they pick me to telephone in the first place and when you realise they probably rang everyone on the phone page that day you realise you are no one special.
You have to understand these companies prey on the vunerability of potential investors who get caught up in the hype of a couple of investment sessions and are taken in by the sales pitch. All of the properties these Marketing organisation sell are new and this is simply so you have nothing to compare the purchase price to and dont realise that you are probably paying well over the true purchase price with the extra going to the marketing firm by way of a commission.
They will tell you the reason why the properties they sell are new is because of the added Tax benefits however if you can reduce the purchase by by through an Agent you can save yourself 000's of $$$.
Also being new you will have to wait until the property is completed before you see anything in the way of rent however in the meantime you have to fund the interest repayments on the construction loan in stages as the building progresses.
If it is your first property personally i would not rush in and sign up but look around the area and see what the average second hand (anything over 12 months) property is being sold for preferably through a Real Estate Agent and gauge the values. Also see what potential rent you can get for such a property as often you realise that the promised rent the Marketing Firm assures you is way off the mark when you talk to a local property manager.
You may even find a property that is already tenanted and this means you can enjoy the rent from day 1 rather than waiting for the building to have been finished.
Whilst i have nothing against building i do have an issue with these Marketing Firms as everything is wrapped up into a package and they try and provide you with everything from a Solicitor to a Mortgage Broker to someone who does your Depreciation report for you.
Everything can be done at a cost and in these cases it is you that is paying for everything normally thru the nose.
Start small, read and learn ask questions on the forum and learn from other investors.
Richard Taylor | Australia's leading private lender
Ernie, make sure you examine and understand all the figures and fees very carefully.
Look out for commissions and ongoing management fees – these may be excessive or unnecessary e.g. a 1% annual management fee in additional to PM management fees is typical of one-stop-shop investment schemes. Ask yourself if it's really worth paying fees like this or can you do the work yourself. Make sure you understand EXACTLY what it is they're claiming to do for you so you can make an informed decision.
Don't be rushed or pressured into anything – nothing is urgent and everything can wait.
Hi Ernie
I'd suggest you take all the advice above and spend some time reading a lot of the posts on this forum. Then come back with all your questions. I have no doubt that, with the help of a number of the professionals on this site, you'll be able to undertake this project yourself.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi Ernie,
Not looking for an investment company or anything however I am curious the costs they have told you? Is it free? Do you have to have a membership with them?
Q1, how about yourself? how much does it cost for you?
You must be logged in to reply to this topic. If you don't have an account, you can register here.
