Im 26 i have my first property still owing an ammount of $274,000 have an equity of about $50,000. Joint income with my bro is 100k a year, im going to take a loan out of about $350,000, to buy my second investment, then a few years after when the equity goes up, i will purchase agian and again, in 10 years im looking to have about 7-8 houses. The only problem is which area to start could be anywhere in australia, somewhere where ill be getting close to 10% per annum, I know a bloke that says he can guarantee to find hot spots for me and choose the houses aswell using this method that is very strict, I MEAN strict as in side of the street type of people in the area age, lifestyle, transport, industries around the area, he pretty much looks at what they eat for breakfast lunch and dinner to determine!!! He recons he can gurantee 10% per annum return ATLEAST!, the prob is his Fee is $45,000, he says he will do all the paper work from the bank, solicitors, purchase of the property , looking after the property, rental tentants, insurance Etc. He works with around 8 people, who have been in the investing industry for a long time now. He says one of his people even rubs shoulders with the councils to determine plans for the suburb etc.
I want to try do this on my own but he says if i pick the wrong spots or property the returns wont be enough to purchase my 3rd house 3 years after my second and so forth….
Any advise from experinced investors?
Im also single and not looking to marry in the next 4 years, i have no expenses im living at my parents home, so im hoping to be out of pocket for a small ammout untill i get more properties and they start to pay for themselves, and im hoping to living of the equities in 10 years.
45k to fee a property with cash flow postive of 10%
Woo… another ripper from the hellRunnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn or Sprinttttttttttttttttttttt
Hi Andrew, NO NO NO… this is not normal practice.
People use REA and Buyers Agents to find them properties, however its a one off fee. Usually a percentage of the purchase price.
Buying property isnt rocket science, just read a lot, talk to people who have done it and lastly see a Mortgage Broker.
Maybe aim a bit lower than 350 unless the rent is astronomical.
Good luck.
Agree with GoM….runAsk for the 10% guarantee in writing, I would like to see that, as a matter of fact, if he gives this to you, please let us all know. A $1Mil property will gain $100k this year, his $45k fee is peanuts. i.e. $55k profit in the first year and $100k thereafter………….. Please tell me this guy is real!!!!!!!!!!!
And if the guarantee is not real then seek other advice- you will get it for free if you look in the right places.
Do you have this guys website or business name details? It would be interesting to see what type of operation they are running? Assume its a pretty slick one for 45k fees…
OH NO!! NO NO NO NO! I'm new to property investing but even I can see that's so wrong. The guy is ripping you off. Everything he's talking about, you can do yourself. Yes it will take time and if anything you'd be better off going to a reno kings workshop or something to get yourself educated. It'd be a hell of alot cheaper than forking out a $45k fee. That's just rubbish. Happy house hunting.
NUmber 8, The company is Genx Lifestyle solutions. (02) 9567-0833 the Main man is Peter. He wont tell you nothing over the phone thats the problem assume you know the deal and say do you guarantee finding property with 10% growth.
Sorry last post was for ambosh, YEs i know if he guarantees the 10% it would be great im waiting on a call from him and i will ask him, i doubt he will tho because he spent 3 hrs showing me a part of there selecting method, also stating they have worked with HUGE corperations to dertermine area . Beleive it or not one of the biggest property investors in the world are actually mcdonalds! and he recons he has connections within and has got tips from them and other big corperations, and with all the information they have this method called the criteria 86 Meaning there are 86 checks to see if the property passes, They even goto shopping centres and do market research and pay random people to ask what they like in a house, area etc. they really get in micro analyising. So pretty much he was trying to show me why the 45,000 is worth it and why they never go wrong when selecting, He doesnt just say 10% he actually says thats the MINIMUM its usually more then 10%. Go figure ….By the way Whats the average percentage growth on a good area ?
Here's an article from 18 months ago.
EDIT:
And an even better article from 3 weeks ago
As God of money says RUN! Just google it and you will see a million and one reasons why this would be a VERY bad idea including the article link dan42 just posted.
If you want to be a successful investor than you need to spend the time investing in yourself by researching and putting in the hard yards yourself. This way the outcome would be long term and sustainable and much more rewarding.
Good luck!
D2B
Your kidding!!!! i did see the first article before but this second one just proves they cant gurantee it!
OK the guy just rang me.. he was trying to tell me that if i do it myself i wont find something 10%, which means i wont be able to get my 2nd 3rd 4th house the the matter of time as i planned, Now tell me this whats the average growth im looking at here if i choose a good place ?
Better yet where can i check growth stats? for all over australia
http://www.residex.com.au has anyone used there service what do you rate them ?? is it worth it?
Residex… yes.. and you can get it free from Richard
BTW, where was the post that offering free Residex report? Access denied???
Ok how do i contact richard?BTW is there anyway i can send a provate msg on here?
sorry ive just worked out the private msg part
He is a regular poster here…
richard (at) tayloredfinancialsolutions (dot) com (dot) auAndrew
You called.
Richard Taylor | Australia's leading private lender
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