Anyone heard of siti group

Hi there,

I have a question..we have been approached by company called siti. Apparently they offer positive cash flow positive properties ...Obviously they guarantee rent for 5 years (!!) and expenses seem to go on them ...The properties seem to be in the $400K+ range ....I am not sure...I have heard they are developers trying to sell their too expensive properties ...
Anyone heard of this company ?? Is it worth to go with them ?? The have a website siti.com.au but that does not tell you a lot either...
Thanks for your comments
Thomas
 
Two things to consider with an arrangement like this:

1. If they over-charge you enough in the purchase price of the property, they can afford to pay you a positive return for the next five years, regardless of how much the tenant actually pays.

2. Will the rental return stack up after the 5 year guarentee ends?

Item 1 also means it may be a very long time before you see any realistic capital gains.

These types of arrangements are often very average deals when the true figures come out. It might be a great deal, but do your own due dilligence and make sure the numbers stack up. From what you've described I won't be interested in it.
 
thanks peter,

they said, we can get independent finance so we do not have to go through them...they just "organising" the property, the tenants etc. Apparently, they rent this properties to corporate staff that are need for rentals as they change location all the time. But as I said, I am not sure what's all about ...I think they advertise solely through through radio (Brisbane) and claim almost cash flow positive (pay only $25 a week on ~$400K home ??) Sounds a bit dodgy to me ..
Thanks
Thomas
 
How did they approach you? What was their sales pitch exactly? What is it that you are finding attractive about them?
 
no, I think my wife made the initial contact, but a consultant came along and "explained" to us the concept ...well, not really just how 'negative gearing' works and a bit of the corporate staff...they booked us in to talk to the 'real' consultant for the next week or so. Attractive was (and that's their sales pitch) "positive cash flow properties" and "5 years rental guarantee" ..
Thanks
Thomas
 
Thomas just be aware that getting your own finance is a long way from due dilligence.

There are several lenders who have a policy that properties do not require a valuation if:
* Purchase price is below $xxx,xxx
* Property is located xx km from CBD
* LVR is 80% or lower

Marketing like this often starts with 'do you live in your own home?' This tells them you've got equity and can probably meet the third requirement. After that just about and broker or banker should be able to get the finance for you, it doesn't really matter how the back end of the deal looks.
 
Yes what PT said. The main clue is them wanting to find out (lets assume you just own your own home)

1. How much your PPOR is worth??
2. How much you owe on it??

If your lvr is lower that 80% then all their bells start ringing. yay the bank (whether the finance is organised by you or by them) won't worry about the value of the house we are flogging!!

YOU QUALIFY!!!!!!!!!!!!!
 
yes, LVR on PPoR is 63%, and another IP is 74%.. so that's fine,
but I'm still not sure if I should trust this company or not....I have the impression these IP's are incredibly upmarketed and I could do it better buying a block of land and build ...
 
Monster.

I am almost positive that you could do better buying land and building yourself in Brissy.

Thats what we are doing.
 
thanks lethia .... we are doing it too ...(slab should have gone down last week) but we were looking for some IP projects in the future and came across this siti group ad... we thought that sounds really good. But well, maybe too good to be true...So we should simply do it again and build another IP ... :)

Thank you all for your comments ...
Thomas
 
Siti Residential has been advertising on Brissie radio for 12 months or maybe more (it has a really irritating jingle). I also checked out their website about six months ago, but there wasn't enough information on it to satisfy me so I left it alone ....

DJ
 
Hey monster24 - I would be interested to hear about anything else you have found out about Siti Residential. We also heard the irritating jingle and thought, yeah ok check it out. Some of the properties they are pushing are within the Mirvac development out at Moggill (The Sanctuary) and the prices Siti are giving us seem to be very much within the range of what Mirvac are quoting.

Still feel a little suspicious and think it is too good to be true. I would appreciate opinions on this Siti thing, does anyone have any personal experience with them at all? I guess if the numbers are right and the properties aren't inflated to add a "loading" for the rental guarantee, then the only thing to really be concerned about would be fraud of some sort?
 
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