Rocket property group

As stated in anothe rpost.

Listen but do not sign anything – tell them you need to speak to your accountant, broker, partner, parents, financial advisor etc before you make a decision.

You are on the verge of making a big and important decision so take your time.

I agreed with Anabelle. They were trying to sell me a house an land package in QLD, but after doing some research I didn’t think it was such a great deal and didn’t go ahead with it. My research found that the house and land package was overpriced compared to others in the same area (of course there were excuses such as “But ours is a full turn key package”). I’m not stupid, I was comparing apples with apples. The other issue was and that the estimated rental return was overstated. The majority of rental returns for comparable houses was approximately $50 per week less then what I would apparently achieve. Because I wasn’t satisfied with that deal, another house and land package was presented to me. My own research again revealed the same things; overpriced and overstated rental return compared to what was already there. I walked away after that.

Rocket act like they are your friends and that their advice is free. At the end of the day they are just trying to sell you something, and the fee you don’t pay now for the advice will just be collected from the overpriced property they sell you. And of course they will suggest to use their team of professionals to help with your purchase. They are all just helping each other line their pockets.

Not relevant to the above posting never used rocket group but thanks Ian for your inspiring YIP magazine in 2010 from memory. I was a low income earner at the time and from all the postings and articles from magazines/forums I always remember your story. 10+ properties later cheers for the motivation and inspiring story

Uhi-78. Your post is inaccurate and misleading in many respects. It is impossible to discern whether you are actually a genuine person, or just a mischief maker with your own agenda. If you are genuine you will be able to tell the forum readers exactly which property, how much, what it is worth now etc. Let’s get really specific about the property details. Regarding commissions, Rocket Property Group is not a charity. I am a fully licensed real estate agent and receive the real estate commission when one of our investors purchases a property through us. Just as LJHooker does when someone buys a property from their listings. All our investors are fully aware of this. However selling property is not our main focus. There are thousands of properties out there, and you can easily buy one over the internet. You don’t need us for that. Our main focus is to understand why our investors are investing in property, show them how property can help them achieve their financial goals and educate them to the point where they can make a confident decision Only then do we start recommending areas to invest in and individual properties that will meet their criteria and preferences .Your assertions that Rocket ‘flogs their own accountants, lawyers etc at an inflated cost’ is rubbish. If investors ask us for a recommendation then we are able to give them some options. There is absolutely no commercial arrangement in place. Our recommendations are based on past experience and value. They won’t always be the cheapest. If you just want the cheapest deal in Australia then you can find it by yourself, we will not recommend anyone who we feel can only compete on price and nothing else. We don’t even have our own accountants, so again your comments are inaccurate and misleading. When you are in business you are in the public domain and it is inevitable that from time to time you are going to get targeted. I have been investing now for over 15 years now and have a very large and well documented portfolio. The properties that I purchase for my own portfolio are the same properties that we recommend to our investors. I have won multiple awards over the years based on nominations from happy Rocket investors. As always, I welcome anyone to contact me personally if you have an issue with Rocket or any of the free services that we offer. My direct mobile number is 0432 663300.

I’m not going to even bother reading all of that Ian. My post wasn’t an attack merely an observation based on my dealings with your company.Stop getting so worked up mate. And if I had gone with what your company had told me would ” meet my criteria and preferences ” I would now be quite a bit out of pocket with an property worth no where near what I paid for it.

The original poster asked has anyone had any dealings with rocket and my answer to that is yes. They tried to get me to buy a property and that property is now worth a lot less than what i would have paid for it. A lot. Bullet dodged, question answered.

• This reply was modified 8 years, 2 months ago by  Uhi-78.

There is no “inability” on my behalf merely my “decision” to not disclose details, I really don’t feel the need to.I didn’t come on here to start an argument and if after reading Ian’s replys you still feel like he is someone you want to do business with than that is entirely up to you.

The original question was ” has anyone had dealings with rocket” and my answer is yes,I chose to not buy an OTP apartment from them which is now worth considerably less. Quiet simple really.

Don’t know why you require anymore detail than that, it’s not exactly “rocket science” :)

Hi Richard, thanks for the question, and my apologies for a late reply. I do not recommend second hand properties. The reason is simple. I have never purchased a second hand property myself. The great thing about property is that there are many ways that you can use it to create wealth. Buying established properties is a strategy that has worked for many investors, and if anyone feels it is right for them I advise them to find a mentor who has already been successful using this strategy.

I have been investing now for over 15 years and still find that buying new works best for me. It allows me to get premium tenants and maximize my tax deductions. I can more accurately predict my cash flows because there is little to no unscheduled maintenance in the early years of ownership. The strategy allows me to profile my target tenant first, then nominate my preferred builder to build the right property in the right area with the right level of specification to attract my target tenant.

Many beginner investors assume that a cheaper older style property is also cheaper to hold, but in my experience the opposite is true, and that is why I always stick to new properties. Thanks for the question.

Hi Richard
I absolutely agree with your comment that I paid a premium price for my Wynnum townhouse. That is because it was a premium property. I could have certainly picked up an old ‘clunker’ for less, but that is not my strategy. Just because you pay a premium price doesn’t mean that you are not getting good value. All my purchases (and recommendations) need to be supported by bank valuations. You are a developer looking to add instant value. I am time poor, have no experience in renovating, and no inclination to do so. Your strategy would not appeal to me, even though it obviously suits your circumstances.

I also agree with your comment that from a tax benefit perspective there is little difference between a brand new property and a 6 month old property. But for me that is not the point. The most important thing for peace of mind is to choose someone that I absolutely trust. A builder who is passionate about what they do, has a great reputation, offers great value, has good processes, and can be relied upon to do the right thing if something unanticipated happens. There are only a handful of builders that I have come across that I would trust and recommend to others.

As for the builder warranty, I have heard from quite a few investors who have unfortunately gone with a ‘dodgy’ builder and have had to fall back on it. From what they tell me it appears to be a deeply flawed safety net that is bureaucratic, slow and at times obstinately unhelpful. I certainly would not want to put myself in the position that I would have to rely on a warranty to get myself out of a bad situation. Much better to find a good builder to start with.

Congratulations on your success. As I constantly point out, there are many strategies that you can use to create wealth through property. My strategy works brilliantly for me, and your strategy works for you. There is no right or wrong. We may agree to disagree on some minor points, but that is life!

Dear Annabelle

I am sorry that your investment property in Gracemere has not performed as we had expected in the past four years. I personally own 23 properties in Central and North Queensland, including 14 in Gladstone which has been equally affected, if not more so, so I share your disappointment. All our recommendations are made only after considerable in-house research, and we also rely heavily on the opinions and research of leading property commentators such as Terry Ryder, BIS Shrapnel and Matusik. We make this research available to all our investors when we make a recommendation.

Around the time that you purchased, PRD Analyst Aaron Maskrey reported that Rockhampton was ‘due a sizeable portion of growth’ ( Regional Hotspots, Your Investment Property Magazine, Dec ’12, page 20). Most property commentators and researchers were echoing the same sentiments at the time, backed up by their own independent research.

I believe that Rockhampton, notwithstanding recent performance, has long term potential, and I would like to make a few comments that you may find helpful to put this investment into perspective.

1. The original rental appraisals were given by a number of local real estate professionals who based the expected rents on results that they were achieving at the time that they did the appraisal. They were not prepared by us.

2. Whilst general economic conditions have meant that Gracemere (along with many other areas) has not performed as expected over the past four years, these same economic conditions have resulted in the lowest interest rates ever seen in Australia. Some of my properties are cash flowing better now than before, as my interest rates have dropped more than my rents. We are happy to do a revised cash flow for this property if you would like one.

3. In order to de-risk property portfolios we have always strongly advocated investing in geographically diverse locations. Property markets have become less predictable in recent years. Many of our investors who have invested in regional areas have also taken our advice to balance their portfolios with properties in Sydney, Melbourne etc. Although they may hold properties in Central Queensland, they are not over-exposed to regional markets and many are still on track to achieve their financial goals.

4. The revised rental that your property manager is quoting seems quite low. My staff member Lindy’s tenant in Gracemere has only very recently renewed their lease at $360 pw. If you would like help with finding a new property manager then we are happy to give you the details of property managers that other investors recommend.

Annabelle, I can hear your disappointment. Property cycles are not 100% predictable, and it is always frustrating when particular properties do not perform as expected in the short term. However, in the vast majority of cases, patience is rewarded. I was only last week speaking to an investor who bought a couple of ‘duds’ (his words) about 15 years ago in Westmead (Sydney). After years of negative cash flow he finally sold his two units at a loss in 2009. Those two units would now be worth about 3 times what he paid. As property is not entirely predictable I know that we cannot keep everybody completely happy all the time. But what I can do, whether our investors are happy or not, is to give them our full and unreserved support. This has been offered to you before, and I offer it again now. One property and four years in the market is never going to give anyone financial freedom, however it performs. Property has helped many people to financial independence, and I do hope that this experience has not soured your attitude to the point where you no longer have the confidence to invest further, because if this is the case you are probably right in your assertion that you have ‘no chance of retiring’.

What a lovely way to respond to Anabelle, she trusted your company and is now stuck with a property that is financially crippling her and her partner and all you can reply with is a snide remark about her attitude ? If that’s the response from the top of the tree I’d hate to see how the rest of the company operates.