Reply: 1
From: John B
I'm happy to reply Jako
This forum seems to hate organisations like this, which is unfortunate because I think they offer something to the Mum and Dad investors but as usual you need to do your own homework.
Yes they only do Brisbane at the moment and they only sell house and land packages which makes it difficult to get a property very close to the CBD. That doesn't seem to be a problem in Melbourne at the moment. They claim they research their areas for a fairly high owner-occupier (70%)rate but I am concerned they are moving too far from the CBD. If they do that then they need to make sure that area has something to offer eg water, schools, shops, transport etc.
I have bought two properties with them (and one by ourselves in Melbourne). I contacted local agents, internet etc to find out local comparable sales and rental demands (vacancy rates) and when all stacked up I signed up. I have been happy with their service and delighted with the growth of both properties. One in particular has grown (I had it valued) about $20,000 (8%) in a couple of months. I am also fairly happy with the rental returns which were higher than anticipated.
One property seemed at a fair market price and the other was a bit higher but they are providing a service which I was happy to use. They organise basically everything if you want them too. I used my own bank for loans as CWB's was too expensive. They organise a property manager and offer a rental guarantee (another thing hated by this forum because some feel they must have put the price up to cover it) although this guarantee has gone from 100% to 50% in 12 months. I guess the property manager didn't feel any pressure to rent it quickly.
While I have been happy with both purchases I feel I'll go it alone on the next and do more of the leg work. I think they have something to offer first time investors
As I said before, do your own homework before signing.
Good luck