Buying thru Prop Invest Company

How does one checkout an prop investment company. ?
We are dealing with a Investment company which it says work direct with developers and sell direct.They will also manage property for us if we decide to buy at 7% fees.
Also they have a fin planning serv where they talked to us about how to use LOC to payoff our PPOR quicker etc.

We even saw the potential townhouse (investment in question) I find the $ and rentability to be good(per numbers I can afford and I also can see why it can rent quick).

Being this our potential first IP.All this new to me. How do i check if all's kosher ? Is there a better business bureau equivalent in AUS ?

Thanks a lot in advance for any feedback. The SS sommunity has been gr8 help so far...
 
Being this our potential first IP.All this new to me. How do i check if all's kosher ? Is there a better business bureau equivalent in AUS ?
Just go for a walk down the road and find a property just like the one your are intending to buy that will be for sale and ask the question
do the numbers and see it it's the same as the one you are looking at,if there is a 10-25% difference in price as there may well be,then go it alone,all these people that are lined up to help all come with a price and not all are upfront,just ask the question..imho..willair..
 
I spoke to a property investment company before I purchase my IP. They added their fees, upwards of $12k-$13k, and I looked in the area for what the prices were going for and the property they found was approximately 5%-10% above other properties in the area. It totalled approximately $40k above the price I could've purchased a similar property for.
 
I full agree with what was said above about inflated prices.

Another suggestion - type the name of the property investment company into Google and see what you get. Don't go to the web site for their company, but check to see whatever other references you may find. Also, don't just look at the first page of the google results, but wade through at least a couple of pages of the results.

Don't just stop there - also type in the name of the managing director into google and any other high ranking staff too. Also, check on ASIC to see how the company is registered, and if any other names appear on ASIC then type those names into Google too.

You may get some very interesting reading by doing such google and ASIC searches. Some interesting info on previous dealings by the managing director may come up - eg, dodgy building practices and dodgy dealings in previous corporate entities etc.



g
 
backed out

google did not fetch much..but called one of customers who had a testimonial on the prop invest company website.
And his feedback was not so + that was enuf for us to back out. although it took a day to track the numbers from white pages but I am glad i spend that time.

thanks for all your posts.
 
google did not fetch much..but called one of customers who had a testimonial on the prop invest company website.
And his feedback was not so + that was enuf for us to back out. although it took a day to track the numbers from white pages but I am glad i spend that time.

thanks for all your posts.

Good on you for doing the due diligence.

We had 10% deposit stolen from us once by the director of a property investment company.

However, a check on ASIC website etc would not have helped, as these people change "identity" and company names all the time.

Cheers,

The Y-man
 
Run,

Run far, run fast.

I have NEVER seen a good buy come from one of these marketing companies.

That they are now holding themselves out to be financial planners is not good news for the majority of their future victims.

Always use your own solicitor and always commission your own independent valuation.

You may be paying say $40k over the top but if you have enough equity in your PPOR the bank doesn't give a toss if you are being ripped off so long as the LVR is fine as is the servicability .. the bank won't release the valuation to you.

If the marketing company commissions the valuation disregard it.

good luck

RightValue
 
Marketeers

Best to do the research and due diligence yourself and buy property directly from real estate agents or buyers (private sale)
 
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