Recently I have attended property briefings and seminars from MPS and CWB. They both have different strategies when it come to Investment property.
MPS focuses within 5-15km from CBD whereas CWS focuses more on building new houses and renting them out.
It seems in the current market no matter where you buy you will still be successful. Thats the impression I am getting.
They both have advantages and disadvantages:
Advantage with CWB:
– Low out of pocket expense (cashflow)Disadvantage with MPS:
– Need to have cashflow to afford high growth props with 5-15km of CBD. (more out of pocket)Advantages with MPS:
– You are likely to make more money with Props within 5-15km. Growth rate is between 8-15%/annum.Disadvantage with CWB
– Though you making money but you are not making as much as you would with MPS. Growth rate in most burbs are 5-8%/annum.
– If we do get another GFC/Property crash, the burbs will be more likely to be affected whereas props around the inner cities are likely to keep their value (may be some might lose a bit of $$$ but its not that bad)Anyone who worked or plan to seek or go with CWB or MPS can share their thoughts please.?
My preference is MPS to be honest but I wanna hear what people think.Cheers
New2InvestMy vote is with a Buyers' Agent and that is Metropole. They don't even compare as competition, one works for you the other sells you stock. If you have enough equity you would be able to finance the BA fee into the deal – this should help with cash flow.
Hi Kent
Thx for he heads up.
Hi New2invest
Honestly you dont need any of themIm not knocking them but in reality, you can buy your own IPs and come up with your own strategy without paying any fees,
you can learn more from the peeps on this forum and from Books and magazines without paying large fees ectall the best just trying to save you a buck
Independent Buyers agent any day over someone marketing you property.
Important to ask how much volume an agency is doing, cost of running a national business, marketing & promotion aren’t cheap. If you are buying 10+ properties a month per agent it might be difficult to devote a lot of time to one client.
I’m about to inspect property #23 for a client today.. makes me want to get into sales or marketing some days
Wow Andrew property number 23! that’s dedication! do you charge a flat fee or charge by how much work is done by you?
As an agent selling properties I may seem crazy here, however we charge a commission to the builder for getting them bulk sales throughout the year without them having to market and have displays etc. Our fee is quite moderate i must admit, however i do know that others charge upwards of 35-40k for this (to the builder). From a personal point of view, to go and charge an extra fee to the client is pretty rude.
Places that have “strategies” are refined strategies from personal investment (most of the time you would hope this is the case). That’s what I show my clients, what I have done and how I do it. The majority of my clients honestly struggle to come up with a strategy, however a lot of people can and do. There is no ONE way to invest in property. I have my ways, you will have another and someone else will have another again. Find what you’re comfortable with, is the first step in choosing a team. If you aren’t comfortable with doing much yourself, then a firm that sells and project manages will suit you (if buying new), if you’re happy to do a bit more work, then a buyers agent will suit you, if you want to do all the work, then do it! Then choose the location. Look for what you think will grow. At the end of the day just because one person told you that an area or a certain radius from the CBD is the only way to invest doesn’t mean you cant loose sleep over it. Do what you’re comfortable with.
I personally have chosen regional Qld and talk the benefits that I have found from it to my clients, however I still get people turning around and asking how much will it grow in the future. I nor anyone else can answer this about an area (how long is a piece of string) So when clients ask me this I know that they are not ready for the risk, they still want that re-assurance which is something that at the end of the day only you can provide (or until the property has made significant capital gain then you can sleep).
@new2invest: I was going to CWB seminar with JLF as the speaker, they will charge you 3% from the property fee for their commission while the subsequent purchase will be 2%
I also joined with JDL strategies by paying $880 once off for lifetime membership but they’ll charge you fee $8700 for the first buy and then $3700 for the subsequent purchase. They only specializing in buying property in QLD especially COOMERA area as newly built house, no option at all for NSW since they think that NSW is already at the top of the boom so it is better off to buy in QLD as its in the bottom of the cycle now.
@henry Adams: I have a hard time understanding why companies like Custodian Wealth Builders and JDL Strategies charge a fee for their properties when its my understanding that they are also receiving a very healthy commission for selling either their property or a property they are promoting from another developer.
Is that commission enough?
SHoltz, Yes so do I, but it is their way of making money out of the momentum like today mate.
so far CWB is more expensive as they charge in percentage as oppose to flat fee with JDL Strategies. So if you are interested to buy in QLD and….do not have time to do all of the due diligence, then you’d be better off go with JDL strategies.
I’m not going with either of them as I mainly focusing myself in NSW area.
Hi New2invest,
Was wondering whether you made a decision with either company? I too have attended MPS seminars and a one on one with their key strategiest last week. I suppose the $1,100 up front cost to become a member covers their time to develop a strategy for you and then they charge 2.5% on the purchase price.
Your thoughts appreciated.
cheers
Hi New2invest and all,
be honest with you guys, I was client of both of the companies !
I think the charge is too expansive, I was too stupid and lazy……when I pay them to do the work for me, it seems to be a quick fix solution to get into the propety market.
However, after a while I realised what i really lost is the chance for me to develop my own set of researching, due diligent, negotion skil, etc….hence now. I do my own research, due diligent, negotiation, organise tradie, contact coucil ….all the hard work myself…..
I guess in the end……. the experience, swears and tears are irreplacable,let along the fee you have to pay to them…
good luck for your investing
also, please see the below link,
I am not sugguesting or commenting anything, but there are really a lot of shark out there.
think 2 before you make any decisionhttp://www.youtube.com/watch?v=HE6nT0oyPt8
good luck
Hi Scha9799,
thanks for the reply. Did you eventually get MPS to find you a property? – I totally agree with you in doing your own research but this shouldn't stop anyone reviewing the properties they put forward, i.e val's, comparable sales, rent apparsals for like properties in the area etc etc.
Property growth usually work in cycles and growth in a new cycle starts in the inner city suburbs and radiates out to the outer suburbs and then into regional areas. Therefore, to maximise your returns it is ideal to follow this cycle.
As an example the inner suburbs of Brisbane stated moving in late 2000 and ended in late 2003. This was followed by a boom in the outer suburbs which ended in 2006. Most regional areas went up around 2004. This cycle is largely driven by investors and can be traced back many decades.
I follow the same pattern when recommending properties to my clients. Therefore, between 2000 and 2003 I was recommending the inner suburbs of Brisbane and from 2004 I shifted to the outer suburbs.
I have not recommended properties over the last three years however, we are starting to see opportunities again.
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