New Investors

The market place is full of companies like this. Generally what they do is only sell off the plan and or new property because they are making more than $30,000 commission per property.

If you deal with companies like this do not be pressured into making instant decisions. There is always huge pressure for you to sign on the spot, because they know if most people go away and think about it they would not buy the property.

If you like a property then go on line and look at what other similar properties are being sold for.

Also consider paying for a full bank valuation. The price of paying $300-$500 is nothing compared to buying a property that turns out to be $50,000 to $100,000.

It is always important to do your own due diligence, If you are lazy and don't do that then don't complain if later you find out that you have overpaid for the property.

Remember measure twice cut once.

Hi there, I have found that in life there is much pressure to close the" deal". I have found that seeing an opportunity like a court Judge, weighing up the evidence and taking advice from reputable property advice organisations and building trust. I have had good success with this approach.

Chris

Good advice as always Richard.  

Some Marketeers try and come across like they are there for you.  Check the disclosure contract on the statement and you will see $30k or so going to them for selling the property.  They are NOT there to help you.

I am litigating on behalf of numerous clients at the moment who have been done by some of these marketeers.  One very common thing in the client statements is the buyers having to tip more money into the deal because the bank vals don't stack up, strangely enough by the val often comes in to be at least the commission amount lower.

Barge pole.

If in doubt, get them to draft a contract for your offer, the accompanying disclosure will have to outline the marketing kickbacks (in QLD) anyway.  

D

The fact is it does not matter who you deal with you should always do your own research. It does not take a lot of effort to go on line to see what properties are selling for in a given area. The fact that so many people buy based on some ones word amazes me. 

I tell my mentoring students that they should check everything I say because at the end of the day its your money not mine. I have always worked on the rule measure twice cut once in other words check things carefully before proceeding and if it does not feel 100% right then go on and look at the next deal. Remember the deal of a lifetime comes around every week, the stronger your knowledge the less chance that you will have of making a serious mistake with your money.

Hi LouieFin's Mum

Whatever you choose to do, remember:

– You don't have to do it "now" just because someone else says so

– If you are trying to build wealth through property investment, listen to others that have actually achieved what you are trying to achieve.  No point following the advice of people that have not.

– Yes you can purchase a property on your own.  There are bucketloads of them on the real estate websites.  Anyone can run out and offer to buy a property.  The results of course may differ depending on whether the property was purchased at the right price, is able to attract a tenant, has infrastructure to support long-term capital growth etc. 

It depends on your available of time, confidence and knowledge.  If you don't have time to do your research, you may not have sufficient knowledge to buy into an area that will serve you well long term (or indeed you may overpay due to lack of knowledge of the area).  Some people also lack confidence in the negotiation phase and prefer it to be handled for them by a professional.

Either way, it's exciting times!  You've obviously spent enough time reading and pondering to decide that property is to be your investment pathway, which is huge progress.  Exciting progress is ahead!!

Nigel that first post is a classic..

I'm an accountant and it is amazing how people will sign their lives away with their new best friend, and make a conscious decision not to waste money talking to an accountant, or anyone actually impartial ..

amazing how many disastrous franchises get flogged this way..

in the overall scheme of things what is $500-$600, at the end of the day….

seen people waste 7-8 years of their lives throw their relationships away and hundreds of thousands on pigs that could never fly, but saved $500 at the start

Hi There, I am also new to investing and I have a few questions before I purchase our first investment property. I read Steve's book about 2 years ago and feel that now is the right time to start this new adventure but feel that I am suck on where to go, to ask for the right advice. For example; I would love to understand the accountaning side better in regards to making sure I set up the superfund correctly to get the best benifits etc… How to work out the overall cost of purchasing the investment property etc… My list goes on. Any help would be much appreciated. Thank you

This is interesting because only yesterday I had a bank val come back 40K under the purchase price. It was a new build in QLD and it was presented to me by a so called mentoring group with whom I recently joined. I am not going to mention their name at this point but I wonder if this was a similar situation to what you outlined D?