His "ability" is obviously coloured by the commissions he's receiving for selling them to you. He certainly wouldn't be recommending them otherwise, would he? Third parties (whether or not they be FP's or others) who receive a fee for recommending a particular property are simply selling agents in disguise.
Always seek independent financial advice. QUOTE]
Hi,
Jacque's point is a good one and is correct.
We also have personal experience as well...
Around 2005 I was sucked in by the Navra marketing vehicle...
I won't go into how much I lost in his company shares , but it was a small fortune.
We did buy a property through Navra in a suburb named Wakerley (in Brisbane).
The deal - we were originally looking at 400pw rent on a purchase price of 435k... that did come close to the 10 year average rental paid and Steve's "Rental Reality" - a formula he used that was meant to advise if the price was realistic based on the previous 10 years of Rental yield..
BUT - we then found out that the price had gone up by 50k - to 485k.
I had my doubts at that time after the "rental reality" was not really there anymore - with a much lower yield.
However, Steve talked me out of dropping from the deal and we went through with it ... The Navra organisation got around 10k (2%) from the deal paid direct from Mirvac. Looking back now , I should have pulled out of the deal but was too enmeshed in the Navra spin to do so.
So....do your own due diligence and check the prices for yourself. If you don't feel right then follow your gut instinct and withdraw from the deal - this is my advice.
David
