My wife & myself are presently looking to buy an investment property. I have heard of two companies (Oz Invest & McCarthy Group ) that are a one stop shop, i.e. do the loan, search for the best property, tenants, maintenance & best of all they help with the lodgement of the tax return which can be claimed on a monthly basis.
Can you please advise me if there are any more like these two & which would you recommend.
Defence Housing Australia & White House Investment are the other two but I believe they do not do the home loan & the help with tax returns.
Please advise me which would your preference be.
Regards
TLI’m against these set ups. Often these companies get up to 4% commission on the properties, upfront and trail commission from the lender and spotters fees from financial planners that sell insurance etc.
Problem is the whole concept revolves not around offering an all in one service, but rather creating a wall from any real independent advice.
For example; bank calls the broker and tells him the valuation has come back short say 300k as opposed to the 360k sales price. Finance can still be approved as the customers house was also security and has plenty of equity. Broker let’s the deal go through and settle without informing customer about the low valuation (finance brokers alliance is to the company and his commission rather than the customer).
I’ve seen too many people lose money on real estate due to these companies. Especially studios, retirement apartments, student accommodation – especially off the plan…
Get some independent advice. Complete independant research on their properties (not the info they give you), and use an independant financier and financial planner.
I am with Banker and very much opposed to such set up's.
4% Commission can be a little light on as i have come across deals with 6% + commission being earned by the marketing firm.
Use an independant Mortgage Broker acting on your behalf rather than assisting the developer offload his stock and then use either a Buyers Agent (if you need someone to locate a property for you) local property manager for the rental and Accountant to do your Tax return.
Richard Taylor | Australia's leading private lender
As above…… In todays climate I do not believe you have the margins that you are giving these groups. It is a market for the astute, get financially savy by at least showing an independant third party after your meetings with these groups. I for one am happy for all my clients to display my thoughts, fees and strategies publicly, I am sure if this was a good value experience they too, will be happy to be completely transparent ……
It depends on the company, the people involved, the market, the region and so on. My little group offers a number of services via alliance partners, but we always have more than one entity offering the same service, so for example we have two broking firms, two environmental consultants, and so on.
As for commissions, referrals, spotters fees etc, welcome to the world of business and marketing. If you think ANYONE in business isn't open to, or doing this kind of thing, which is quite legitimate and a way for businesses to increase their opportunities and get more business, then you're plain kidding yourself. Is it wrong? Ask yourself, is marketing your business any legal way possible wrong. If you owned your own, would you not want to form as many relationships, as many possibilities for income, as you could? The reality of it is that financial incentives exist and they will continue to exist, no matter what we think or do or say. Why else are we in business if not for financial incentives? May not be the politically correct view, personally who cares if it's PC or not, its real and its honest. You can either chose to deal with it, or not.
Sure, some take it too far, greed often destroys good business practice and ethics. I don't dispute that one bit, just take a look at the 'educational seminar' circuit.
As with anything, there are two sides to the coin, and you should always, ALWAYS do your own research first. Then once you're satisfied you can talk the talk, one of these groups may be just right for you because you 'should' know what you want and go and ask for it. Everything is negotiable to a point. Just be aware, if you go in asking for everything and giving nothing, why would someone want to do business with you?
Best of luck in your decisions.
Matt.
What’s your. Little group called Matt?
Hi Banker, I hope this doesn't breach advertising guidelines, apologies to Steve et al if it does…
Responsible Living Corporation. It's a new group, working with affordable and sustainable housing solutions (including University Accomm solutions) right through to high end residential design architecture and construction project management.
Our primary product(s) are the Smarter Small Home and some associated products by the same designer. Our vision is very much to be able to provide affordable housing solutions to people ranging from the single buyer through to the developer willing to put together projects of this nature. Its a paradigm shift as the primary product only requires 300m/2 of land, so you're reducing land cost(s) (hopefully depending on Councils) and still having a back yard. Rapid construction times also (max 6 weeks inclement weather not withstanding) so construction risks are reduced as are holding costs in amongts other things like building waste.
We have alliance partners providing environmental services including carbon assessments through to CPTED, Security and Risk Assessment specialists, two broking firms (one recognisable brand and one family business both in Brisbane), and we're working with another group who provides 24/7 handyman/insurance/legal and other 'handy' services. We're also looking into project marketing via a few of our alliance/buyers groups and partners which my business partner operates with.
Offices in Sydney and Brisbane so far, very excited about the prospects at this stage of the game.
If anyone would like to know more, please don't hesitate to get in touch. [email protected]
Cheers,
Matt.property planning australia and capital 360 are companies like this and there are plenty more. they help you set up the structure, get the loan, find the property they negotiate for you, and they help you along the way evaluating your portfolio.
The dont buy new property so there is no commisions paid to developers. they charge a flat fee to find a property. its generally between 8-10k per property. that involves all the due diligence and negotiations etc.
some of them even guarantee that they will purchase the property below market value. they work for you, not for the seller.
Property planning australia focus on educating you about the whole process as well, they even offer a course at vic uni about property investing.
They will even help you organise a reno, some, like alliance corp, specialise in this.
I have talked to them all and am currently using PPA to get my finance and structure set up (no charge as they act like a broker), and will find my own property.
Worth looking into if you don't have time to look at hundreds of propertys but still want to invest in residential property.(for the record, i dont work for any of these companies, i have just investigated them as i was planning on using them and still probably will inthe future)
Thank u all for the information it is very useful
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