Reply: 3
From: M F
Hello A,
This topic has been discussed on the forum numerous times. If you go through the Property Investor Archive (or search the topic) you'll find plenty of reading.
In summary however peoples opinions seem to be that they offer a no worries type service (do most things for you) and have the security of long term leases, reliable tenants, property management taken care of, market value rent with no vacancy periods. All sounds pretty good up front but you pay a premium for it. From what other people have had to say I believe their management fees are fairly high, and you'll probably pay more for the house up front (purchase price) if you buy through them than if you buy yourself (provided of course you did some research and negotiated successfully).
So if your prepared to pay a bit more for a low maintenance / low stress investment then it might be something to consider. Do your sums though. Also keep in mind that you can lease to them direct. I don't know the exact conditions of the lease, but if you buy a suitable residence in their allocated areas you can lease directly to them after purchase. Depending on the benefits of this lease agreement the money saved on purchase might make it a better option? Just some thoughts for you.
Good luck.
MF