Custodian Wealth Builders

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From: Jako MMP


Any one offer comments good/bad about
Custodian Wealth Builders.

Do they only do Brisbane?


Jack
 
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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
 
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From: Anonymous


Hi,

I purchased a property from them (before discovering this forum). They promote -ve geared property and make promises such as:
· You will only pay 'market value' based upon 'independent valuations' eg land + building costs. eg $90k land + $130K building = $220k valuation. Get itemised details re the building costs.
· A ‘tenant gap cover’ if your property is not rented - costs you 3 weeks rent to get the cover (max 48 weeks pa at 50% of the weekly market rent) and 6 months + to get paid (if you are lucky). They claim cash flow problems for not making payment - hmmm!
· 21 day cooling off period after you have signed.

Some things to look out for:
· Ask about the ongoing costs to maintain your property – I think it is called ‘Custodian House & Garden care maintenance‘ – compulsory for all purchasers ($500 +pa).
· The expensive solicitor that they recommend
· Their finance package can be expensive.
· Distance from the CBD
· Number of rental properties in the immediate area
· Details re the building costs – ask for itemised costs eg building, landscaping, fencing etc etc.

Whilst I am not totally unhappy with my purchase as we learnt a lot from the experience and it got us started in the IP world, I think if you spend time with the people on this forum you might not need to use their services. But at least they appear not to be from the dreaded Queensland property marketeers ilk.

Apologies for the anon post.

Good luck.
 
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