Anyone heard of property secrets ?

Hi Hysterical,

I haven't engaged in their services yet - but I have had a meeting for an hour or so with the owner Paul. He practices what he preaches - i.e. actually owns lots of property. I found him very knowledgeable and he gave me a rundown of his strategy - which is similar to mine. They do everything from finding the property to mortgage broking to building granny flats to whatever else you can think of to making you money in property.

Look on the website and you can see a 30 min presentation. There have also been articles written about him. The reason I haven't used them yet is because I feel I can find just as good property as them - without the fee - and also take care of everything else. What I may use them for is to build granny flats - as I think they are good quality at a good price.

For those who don't know what they are doing - I think they offer a good service for a good price - you will make money but so will they.
 
Hi JWR

Thanks, did you meet up with them face to face and how did you verify that the owner have the number of property he claimed to own ?

Cheers
 
yeah - met him for an hour like I said. I suppose I cannot verify it - he says he owns around 25 properties from memory - don't think he could pull one over on all clients etc... But I did read an article about him (I think it was BRW) that listed all the locations of his properties. One he bought in Leichhardt for $850k I think - now worth $2M - in a fairly short space of time (under 10 years - his PPOR). Type him into google and start reading
 
Very interesting.

I had never heard of this particular business.

However to build GF on existing property this company was recommended to me by my property manager.
http://www.extendagrannyflats.com.au/
They have plans on their site or various types of granny flats with pretty set pricing. :D (They also have a 50m2 2bdr for blocks needing a narrow build)

I have also had discussons with www.completebuildingsydney.com.au who also do brick & tile granny flats of varying sizes and budgets.


I am keen on these types of investments, provided the block facilitates it in a functional manner. I like corner blocks or blocks with front and rear access, so can exist as two self contained dwellings.

Just make sure the property is not declared a 'flood island' before you get the constuction complete. :p
 
What are the costs for the GF's? And what kind of quality are they? Anyone had any exp's with these companies?
 
All I know is from my recent investigations in Sydney.

However, for an indication of pricing.

I know that this Extenda company have a pretty much all inclussive price set up ranging from $86,950 - $99,950.00 depending if you choose Brick or Hardiplank exterior and size (60m2 2bd, 50m2 2bd or 45m2 1 bd) [as at October 1, 2011]

"All prices exclude GST, statutory fees and all site and connection costs and are subject to change without notice. Prices quoted assume a level site and standard soil conditions."

So you can see how even if you have to borrow to construct it. In some property situations you could easily be getting rental returns of 17% > on such an investment. :)
 
Cloudedhouse said:
So you can see how even if you have to borrow to construct it. In some property situations you could easily be getting rental returns of 17% > on such an investment. :)
Click to expand...

Given that the real costs of constructing a 2 bed granny flat are around $100K a rental return of $300-350 isn't unrealistic in this market. Also check out the following companies as both are reputable with members of this forum using both and only having good things to say:

www.grannyflatapprovals.com.au Ask for Serge
www.grannyflatsaustralia.com.au Ask for Cid or Wally
 
Does anyone know what kind of finance you can get with the granny flats? Are they normal interest rates and 90% LVR or more?

What about getting a local builder to do it? Would this cost less? Perhaps a lot more risky though than a specialist company...
 
My property that I looked at doing this to is with CBA. :rolleyes:
They were very excited by the proposal :D $$$$$ :p

They said they would do it on the 'As if value' to prevent / reduce LMI implication. :cool:

As for IR it was to be better that existing rate, but only by a basis point or so, so approx late 6%'s.
 
Don't pay fee's though.

Remember everything is negotiable, with the big four..provided your financials are squeeky clean.

I have never paid an establishment fee, monthly fee, annual fee or conversion fee. Come to think of it I dont pay bank fee's either.
 
So they are making a profit renovating properties for noobs? What's the problem here exactly? Is someone putting a gun to these peoples heads to buy the property? Can they not do their own research?
 
ok180 said:
So they are making a profit renovating properties for noobs? What's the problem here exactly? Is someone putting a gun to these peoples heads to buy the property? Can they not do their own research?
Click to expand...

People are, fundamentally, lazy. As Homer says "can't someone else do it"?
 
ok180 said:
So they are making a profit renovating properties for noobs? What's the problem here exactly? Is someone putting a gun to these peoples heads to buy the property? Can they not do their own research?
Click to expand...

The problem is that there were non disclosed commissions, which is illegal.
 
geoffw said:
The problem is that there were non disclosed commissions, which is illegal.
Click to expand...

Ok it's illegal, it's not great but really what does that have to do with the customers getting a good deal or not? People need to do their due dilligence and work out for themselves if they are getting value.

I don't see what is so bad about them getting a kick back from a builder anyway. Provided they are doing what was in the contract for the customer what is the problem? Schmoozing clients goes on all the time in business. What about all the house and land packages or unit blocks going up. Do people think there are no kickback there too?
 
The practice provides an incentive for the company, in this case Property Secrets, to preferentially refer their clients to a 3rd party, the builder, who may not be the best choice for their client, but IS the best choice for the company due to the fact they are being paid to recommend their services.

The builder may do sub par work, or be more expensive than others in the market, and the company's customer loses out as a result, suffering higher than market rates, or sub standard workmanship.

This is why the practice is illegal IMO. The customer pays the company to provide advice, however this advice is not given in the customer's best interest, but in the company's best interest, as they are also being paid by the 3rd party.

How would you feel if your doctor advised you to take inferior medication because the company that produces it was paying them to prescribe it to their patients?
 
User Name said:
The practice provides an incentive for the company, in this case Property Secrets, to preferentially refer their clients to a 3rd party, the builder, who may not be the best choice for their client, but IS the best choice for the company due to the fact they are being paid to recommend their services.

The builder may do sub par work, or be more expensive than others in the market, and the company's customer loses out as a result, suffering higher than market rates, or sub standard workmanship.

This is why the practice is illegal IMO. The customer pays the company to provide advice, however this advice is not given in the customer's best interest, but in the company's best interest, as they are also being paid by the 3rd party.

How would you feel if your doctor advised you to take inferior medication because the company that produces it was paying them to prescribe it to their patients?
Click to expand...

well said,

we live in a first world country we less corruption compared to the rest of the world,

as a citizen, yes Due diligence is important but yu dont want to have to sort through fraudulent and deceptive parties in order to find some decent ones even if they are overpriced,

and perfect example is the doctor, you can NOT say to 99% of the population, well you should know what medication you need, its part of your due diligence, as a citizen you expect to get the BEST treatment/medication for your condition, not one that generates the most profit for the doctor or drug company,

just like how when you go to the supermarket, you should have to check the useby date of everything you buy unless it only lasts 2-3 days,
 
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