Australian Investment Institute
- Thread starter JOJO
- Start date
The problem as I see it with a lot of these companies is that they often sell townhouses in places miles away from the city.
You see, its land that goes up in value, and its the brick and mortar house that goes down!
So if you have little land content, but very high house content you'll find its really difficult for your IP to hold its value. Especially when there's so much land around where it is, your land value for a townhouse is very low.
Since its this bit that appreciates, you're going to find growth prospects very hard going for a very long time.
Also, there may be little attraction for a potential buyer in a row of townhouses in Derrimut (if that's where it is). And its what people will pay for your IP that sets its value. So dont ignore resale value. People often do when they buy an IP but that ultimately sets your house value.
Personally wouldnt go near it.
You see, its land that goes up in value, and its the brick and mortar house that goes down!
So if you have little land content, but very high house content you'll find its really difficult for your IP to hold its value. Especially when there's so much land around where it is, your land value for a townhouse is very low.
Since its this bit that appreciates, you're going to find growth prospects very hard going for a very long time.
Also, there may be little attraction for a potential buyer in a row of townhouses in Derrimut (if that's where it is). And its what people will pay for your IP that sets its value. So dont ignore resale value. People often do when they buy an IP but that ultimately sets your house value.
Personally wouldnt go near it.
My suggestion would be to meet with this crowd, but DO NOT sign anything - yet. See what they offer.
Then, go out and research the areas they recommend where their properties are, and compare the recent sales of comparable properties around 3-5 years old as BoomTown suggested.
Then you will know whether their products are over-priced or not.
Why 3-5 years old? Because there will usually be a resale in that time, and the resale price will be at the true market price. If you buy a new property today, and resell it in 12 months, it will be pretty close to the same price as the 3-5 year olds - they are all second hand, so not much difference.
So, you may as well buy something relatively new, which will still have excellent depreciation, and you won't be paying too much for it at the start.
Generally, these sorts of companies will be selling their products too expensive, and it will be you footing the bill. If there are rental guarantees attached, you can be certain the rental guarantee is built into your purchase price.
The problem is, you may waste 3-5 years with no or little growth because of the purchase price you will be paying.
Keep those scam antennae up!
Interesting thread
Hi everyone, I'm also new to the forum. Like MRMAKO I also had an appointment with AII. So I thought I'd do a little googling to find out more about them and came up with this forum.
Being naturally cynical by nature ...(alas), what I have found here confirms my own thoughts. Gained by watching too many years of trashy current affairs shows, I already knew about the over evaluation scam carried out by some companies.
Seems like from what I've read here it's best to do your own property investing, and not go through an investment company.
That requires a lot of knowledge. Apart from reading this forum does anyone have any good recommendations for other web sites, books, mags worth looking at?
One thing the guy talked about was using an interest only loan to buy the property. Is that sort of loan the way to go?
Hi everyone, I'm also new to the forum. Like MRMAKO I also had an appointment with AII. So I thought I'd do a little googling to find out more about them and came up with this forum.
Being naturally cynical by nature ...(alas), what I have found here confirms my own thoughts. Gained by watching too many years of trashy current affairs shows, I already knew about the over evaluation scam carried out by some companies.
Seems like from what I've read here it's best to do your own property investing, and not go through an investment company.
That requires a lot of knowledge. Apart from reading this forum does anyone have any good recommendations for other web sites, books, mags worth looking at?
One thing the guy talked about was using an interest only loan to buy the property. Is that sort of loan the way to go?
Howdy
Check out the following for a list of suggested books, etc .....
http://www.somersoft.com/forums/showthread.php?t=9652
And welcome to the forum!
Cheers
LynnH
Check out the following for a list of suggested books, etc .....
http://www.somersoft.com/forums/showthread.php?t=9652
And welcome to the forum!
Cheers
LynnH
Yes its a standard technique used by many. Get reading this forum - dont buy anything til you have done your research.
New and also looking for info on AII
Hi all,
We too had a meeting with one of their sales people and paid the $495 to join. We were supposed to go see the Oddesy guys today but had to cancel as my hubby had a work thing pop up.
I found this site by googleing AII and this forum came up as a hit and I have read with interest.
I understand that everyone that is an experienced investor says to run away and don’t look back. However for people like ourselves that tried to do the investing thing by ourselves and with the help of our then accountant lost a lot of money trying our hand at investing.
So yes paying a fee to have someone to assist us in getting started is appealing. I’m sure that later on down the track when we are more experienced we will be able to do it all on our own, but for now we are happy to retain the services of people who do this sort of stuff for a living.
Yes I have now discovered this forum and can use you guys for help and assistance, and I plan to do so. I know that I will take what they say with a grain of salt.
But I really don’t understand why everyone who is an experienced investor is so quick to judge this new company? I like the advice from the previous poster for people to have a listen and make your own individual choices. Which is what we plan to do.
Our situation is quite a tricky one and I threw them many weird and wonderful questions, which the sales person was able to answer.
So my question is along the lines of JoJo. Has anyone here actually dealt with them and had a bad experience or is everyone basing their opinions on assumptions?
It really is hard to start out and to not loose out big time and to not get burnt. But we have to start some where right???
I will watch this thread with interest as I an eager to hear the outcomes of the other people who have actually interacted with them and have had no problems so far!!!!
Hi all,
We too had a meeting with one of their sales people and paid the $495 to join. We were supposed to go see the Oddesy guys today but had to cancel as my hubby had a work thing pop up.
I found this site by googleing AII and this forum came up as a hit and I have read with interest.
I understand that everyone that is an experienced investor says to run away and don’t look back. However for people like ourselves that tried to do the investing thing by ourselves and with the help of our then accountant lost a lot of money trying our hand at investing.
So yes paying a fee to have someone to assist us in getting started is appealing. I’m sure that later on down the track when we are more experienced we will be able to do it all on our own, but for now we are happy to retain the services of people who do this sort of stuff for a living.
Yes I have now discovered this forum and can use you guys for help and assistance, and I plan to do so. I know that I will take what they say with a grain of salt.
But I really don’t understand why everyone who is an experienced investor is so quick to judge this new company? I like the advice from the previous poster for people to have a listen and make your own individual choices. Which is what we plan to do.
Our situation is quite a tricky one and I threw them many weird and wonderful questions, which the sales person was able to answer.
So my question is along the lines of JoJo. Has anyone here actually dealt with them and had a bad experience or is everyone basing their opinions on assumptions?
It really is hard to start out and to not loose out big time and to not get burnt. But we have to start some where right???
I will watch this thread with interest as I an eager to hear the outcomes of the other people who have actually interacted with them and have had no problems so far!!!!
The problem is not the company specifically, I've had no dealings with them. It's that the business models of these companies encourages them to offer you services and products that are not in your best interest.
They are not remotely on your side, their interests are in direct opposition to yours.
It's like taking investment advice from a REA on which house to buy and for how much, and then paying them for the privilage of them telling you to buy a property (which they so happen to have on their books) for an inflated price.
You seem to want to reduce risk due to you being burnt in the past, what i'm saying is going through these companies is very risky (due to buying the wrong property for the wrong price) and the potential rewards come no where near offsetting this risk you are taking.
They are not remotely on your side, their interests are in direct opposition to yours.
It's like taking investment advice from a REA on which house to buy and for how much, and then paying them for the privilage of them telling you to buy a property (which they so happen to have on their books) for an inflated price.
You seem to want to reduce risk due to you being burnt in the past, what i'm saying is going through these companies is very risky (due to buying the wrong property for the wrong price) and the potential rewards come no where near offsetting this risk you are taking.
Its no different than walking into a Holden dealership and telling the salesperson "I have no idea about cars, help me find a car that is right for me."
I guarantee you that the salesperson will find a Holden that is "right" for you - even if you would have been far better off with a Toyota Corolla.
If you don't know anything about cars you shouldn't be buying one until you do your research. The same holds true for investments.
I guarantee you that the salesperson will find a Holden that is "right" for you - even if you would have been far better off with a Toyota Corolla.
If you don't know anything about cars you shouldn't be buying one until you do your research. The same holds true for investments.
As Twitch stated above, I believe it is the business model that worries people.
Let's put it another way - if you were to get what the member's here would consider "decent" service, I suggest it would be in the form of a combination or coordination of:
1. mortgage broker
2. buyer's agent
3. conveyancing lawyer
Of these, item "2" is probably the most crucial for the "time poor" (as 1 & 2 are relatively easy, and you would spend the same time sitting and talking to a broker as you would going through a "one stop" shop).
So the acid test is this:
How much are you willing to pay? $200 per hour? $400 per hour?
You might be surprised to find out that the typical "effective" amount you pay for some of the "one stop" organisations is in the order of $1,000 to $10,000 per hour.
This means that hiring a capable BA might be a cheaper option, and still save you heaps of time.
Cheers,
The Y-man
So would it be fair to say that they are able to give advice, and that advice may be beneficial to help me get started, but as long as I take away the information that they give me and do my own research before making any commitments.
From my understanding is that I don’t have to commit to buying anything from them. They are more than happy to assist us in making the necessary changes to make our current property work for us and to enable us to purchase further properties.
What I’m trying to say is that I am learning as I go along, and trying to make the best decisions that I can in our current situation.
I hope to one day be able to stand on my own two feet and eventually manage our portfolio my self and have all the knowledge that is required to be able to do this. But I have to start somewhere and if they have hints and tips that help me get there whats the harm in getting that knowledge.
Obviously its common sense that before purchasing a property that you properly research the are etc and make sure that your not being taken for a ride. But the same goes for info on forums. It also needs to be taken with a grain of salt and looked into.
Off to try to read some more of the forum…
On a side note the forum keeps crashing on me every time I try to switch windows. Ie going to look in my email it will give me an error and close the page….
Thanks for the info Y man.. Im going to do some more research into this BA. that you speak of.... Although isnt that sort of what AII do? All beit that they have a vested interest if they sell you new properties, but they also deal in established homes so is it not effectivly the same thing if I was to tell them that I only wat established homes between 3-5 years old ?? would they not have to find that for me?? I guess thats a question that I can ask when I speak to them next.
Sorry for the Noob questions
From my understanding is that I don’t have to commit to buying anything from them. They are more than happy to assist us in making the necessary changes to make our current property work for us and to enable us to purchase further properties.
What I’m trying to say is that I am learning as I go along, and trying to make the best decisions that I can in our current situation.
I hope to one day be able to stand on my own two feet and eventually manage our portfolio my self and have all the knowledge that is required to be able to do this. But I have to start somewhere and if they have hints and tips that help me get there whats the harm in getting that knowledge.
Obviously its common sense that before purchasing a property that you properly research the are etc and make sure that your not being taken for a ride. But the same goes for info on forums. It also needs to be taken with a grain of salt and looked into.
Off to try to read some more of the forum…
On a side note the forum keeps crashing on me every time I try to switch windows. Ie going to look in my email it will give me an error and close the page….
Thanks for the info Y man.. Im going to do some more research into this BA. that you speak of.... Although isnt that sort of what AII do? All beit that they have a vested interest if they sell you new properties, but they also deal in established homes so is it not effectivly the same thing if I was to tell them that I only wat established homes between 3-5 years old ?? would they not have to find that for me?? I guess thats a question that I can ask when I speak to them next.
Sorry for the Noob questions
And on the subject of the BA. Where would I find one of these and exactly what services do they provide?
Will I still need to find a decent accountant and mortgage broker etc.
We have just relocated to Melbourne so will need to find these services anyway Im guessing, it was just quite convenient that AII have all these services at their disposal.
Will I still need to find a decent accountant and mortgage broker etc.
We have just relocated to Melbourne so will need to find these services anyway Im guessing, it was just quite convenient that AII have all these services at their disposal.
Seriously mate - you have to understand that "quite convenient" can be "quite expensive". Buying toilet paper from a "convenience store" costs more than Coles for a reason.
Might be an idea to start a new thread with that question - as I have never used one here......
Cheers,
The Y-man
Dear Concerned Investor,
I will explain how it all works as this is the typical direct sales type investment scheme where you pay huge premiums on what you are buying and also stand a huge risk that you will lose all your money:
1) They put adds in the paper for commission only salespeople (these are generally people that cannot or will not be employed by any other company.
2) The salespeople are put through a week of training on different closing techniques and emotional sales strategies.
3) They present to you the client and make friends with you and make you all the promises in the world where really all they care for is getting paid their commission.
4) They then get you to the point on price and call their manager where they ask for a discount (which is always given as the price is always marked up dramatically)
5) They then leave and if the developer goes under they don't care, they have been paid.
This is a typical Henry Kaye scheme and I would say keep your money and run as quickly as possible, ask people who bought from Henry Kaye, this is no different. Please ask Fair trading about these schemes and the people behind them. Thousands of people got screwed and no-one was able to assist.
I will explain how it all works as this is the typical direct sales type investment scheme where you pay huge premiums on what you are buying and also stand a huge risk that you will lose all your money:
1) They put adds in the paper for commission only salespeople (these are generally people that cannot or will not be employed by any other company.
2) The salespeople are put through a week of training on different closing techniques and emotional sales strategies.
3) They present to you the client and make friends with you and make you all the promises in the world where really all they care for is getting paid their commission.
4) They then get you to the point on price and call their manager where they ask for a discount (which is always given as the price is always marked up dramatically)
5) They then leave and if the developer goes under they don't care, they have been paid.
This is a typical Henry Kaye scheme and I would say keep your money and run as quickly as possible, ask people who bought from Henry Kaye, this is no different. Please ask Fair trading about these schemes and the people behind them. Thousands of people got screwed and no-one was able to assist.
Be careful, rather use a known investment company where compliance is controlled by ASIC etc... These boys are from the Kirby Vacuum cleaner and home security backgrounds. There are no government controls on this company. Call fair trading and ask what happened to Henry Kayes clients and also about 20 other of the same types of businesses clients.
Are you a staff member of this company as you are rather ignorant to the true facts behind these types of schemes. Just blog the investment property market and you will see how many people are being ripped off daily of their life savings. Mom and pops are the losers in these schemes, not the sales companies.
Hello again,
Just another update for everyone. We haven't actually done anything yet because of some pretty heavy stuff at home with the cook.
Anyway, interestingly enough, we haven't been hounded by them at all. The guy from the institute has phoned twice and both times I explained the hold up and he just says 'in your own time', which I thought was pretty cool... not the high pressure some people here are alluding to, or say to expect.
Now its at the stage where he says he won't keep calling me, but I can call them when we are ready - he reckons the membership stays current regardless.
Now I'm yet to actually look at their property offers but they certainly haven't come across as dodgy to us at any stage - or pushy.
A little side note though... on the weekend I met a fella (he & his wife actually bought the cook's old car we had advertised). Anyway we got to talking about houses and investments etc and the name of the Australian Investment institute came up. They actually bought a house through them! We didn't get into absolute specifics but he raves about them. He apparently bought it (a 4 bedroom house in Pascoevale) a little way back and it settled a month ago. On settlement, they had tennants ready to move in straight away but before they did, they got two of the local agents in to value the place. The lower of the 2 valuations was 35k more than they paid for it. He and his missus were over the moon about it when they were telling us. Now I figure they had no reason at all to be telling us porky pies, and if their experience is anything to go by, then I'm looking forward to seeing what they have for us!
So, my advice to anyone else who is checking this forum to suss out AII, is as follows.
1. Well done for doing your homework, I'm still doing some and it all helps.
2. Be careful of ALL advice - including whats on offer on here - and trust me, there's no shortage of people wanting to make broad accusations and assumptions. They preface their advice with, 'mobs like that...', and 'companies with a business model like this....'. Note 'like'! Their advice is not specific.
I've found that there are 3 types of people on here - (a)the newbies like me who don't have the knowledge, nor the time to study every little thing. (b) the experienced who actually do know stuff and share their thoughts without making you feel stupid for asking, and (c) the know-it-all blah blahs.
3. Ask questions, don't be afraid to pay for good advice from proven professionals, and make your own mind up. That's what the fella who bought our car did and it served him well. The cook and I are going to do the same when she gets better.
Until then, happy speculating all.
Just another update for everyone. We haven't actually done anything yet because of some pretty heavy stuff at home with the cook.
Anyway, interestingly enough, we haven't been hounded by them at all. The guy from the institute has phoned twice and both times I explained the hold up and he just says 'in your own time', which I thought was pretty cool... not the high pressure some people here are alluding to, or say to expect.
Now its at the stage where he says he won't keep calling me, but I can call them when we are ready - he reckons the membership stays current regardless.
Now I'm yet to actually look at their property offers but they certainly haven't come across as dodgy to us at any stage - or pushy.
A little side note though... on the weekend I met a fella (he & his wife actually bought the cook's old car we had advertised). Anyway we got to talking about houses and investments etc and the name of the Australian Investment institute came up. They actually bought a house through them! We didn't get into absolute specifics but he raves about them. He apparently bought it (a 4 bedroom house in Pascoevale) a little way back and it settled a month ago. On settlement, they had tennants ready to move in straight away but before they did, they got two of the local agents in to value the place. The lower of the 2 valuations was 35k more than they paid for it. He and his missus were over the moon about it when they were telling us. Now I figure they had no reason at all to be telling us porky pies, and if their experience is anything to go by, then I'm looking forward to seeing what they have for us!
So, my advice to anyone else who is checking this forum to suss out AII, is as follows.
1. Well done for doing your homework, I'm still doing some and it all helps.
2. Be careful of ALL advice - including whats on offer on here - and trust me, there's no shortage of people wanting to make broad accusations and assumptions. They preface their advice with, 'mobs like that...', and 'companies with a business model like this....'. Note 'like'! Their advice is not specific.
I've found that there are 3 types of people on here - (a)the newbies like me who don't have the knowledge, nor the time to study every little thing. (b) the experienced who actually do know stuff and share their thoughts without making you feel stupid for asking, and (c) the know-it-all blah blahs.
3. Ask questions, don't be afraid to pay for good advice from proven professionals, and make your own mind up. That's what the fella who bought our car did and it served him well. The cook and I are going to do the same when she gets better.
Until then, happy speculating all.
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