money choice all in one broker solution ?

You're going for a badly implemented finance structure, to a group whos first thing they advertise is off the plan properties for sale? :eek:

I don't know anything specific about this group, but long experience tells me to avoid groups who sell property as an investment, then add the lending and financial planning on as an afterthought.

Notice how everything on their front page is brand new appartments? No houses or existing appartments. Everything is off the plan and high density.

Combining finance broking and financial planning can be very powerful. Groups that advertise these types of property however, tend to be making large commissions from the property sales. In almost all cases you can acheive better results on your own or by engaging a buyers agent.

This suggests that they are predominately commission or fee driving, in other words, what's their bottom dollar. I believe this comprimises the quality of their advice.
 
You're going for a badly implemented finance structure, to a group whos first thing they advertise is off the plan properties for sale? :eek:

I don't know anything specific about this group, but long experience tells me to avoid groups who sell property as an investment, then add the lending and financial planning on as an afterthought.

Notice how everything on their front page is brand new appartments? No houses or existing appartments. Everything is off the plan and high density.

Combining finance broking and financial planning can be very powerful. Groups that advertise these types of property however, tend to be making large commissions from the property sales. In almost all cases you can acheive better results on your own or by engaging a buyers agent.

This suggests that they are predominately commission or fee driving, in other words, what's their bottom dollar. I believe this comprimises the quality of their advice.

Thanks for the reply mate,

In the paper form that I read before signing the form they say that they don't get paid from me and also they only "source" the property from some other builders not from them. as for me I'll be looking for my own property my own rather than buying from them.
 
In the paper form that I read before signing the form they say that they don't get paid from me and also they only "source" the property from some other builders not from them.

So they're sourcing properties for free? Of course they're getting paid: by the builders. Nothing inherently wrong with that, of course, as long as they're disclosing it.

as for me I'll be looking for my own property my own rather than buying from them.

So wouldn't it be a good idea to find someone who does only finance instead of being distracted by the property marketing? If your only objective is to fix up your loans, why go to someone who runs the finance part as a sideline? Clearly they make more profit if you buy through them and get a loan through them. If all you want is a loan, you're going to be treated like the 'less profitable' customer that you are to them.

Seriously, why are you deliberately making this difficult for yourself?
 
In the paper form that I read before signing the form they say that they don't get paid from me and also they only "source" the property from some other builders not from them. as for me I'll be looking for my own property my own rather than buying from them.

You've got to ask yourself how they get paid...

Of course they don't build the properties themselves. They source the property from the developer and get paid a commission by the developer.

99% of these properties are not very good investments. Most of them are outright terrible investments.

I've generally found that groups whos frist line of business is to market properties to you in this manner are primarily driven by their income, their commissions and their profitability. There's nothing wrong with making a profit, but for many groups like this, they put it over and above giving you the best advice.

This group has already appears to have been deceptive in the manner in which they profit from the properties by not disclosing that they get paid substantial commissions by the developer. Do you really think they'll stop there?
 
Thanks for the reply mate,

In the paper form that I read before signing the form they say that they don't get paid from me and also they only "source" the property from some other builders not from them. as for me I'll be looking for my own property my own rather than buying from them.

i dont mean to sound harsh but you have ignored most advice sought on SS in the past, pls dont do the same here. there are plenty of knowledgable and unbiased brokers on here (PAGING EVAND TO THE THREAD), why not use them instead of people with vested interests?
 
Henry,

You are doing things the hard way. You seem to be worried about paying for advice, but happy for someone to make a large commission from you.
 
Money Choice & Matt George

Yes I'd be careful using this company.

I went to Money Choice and ended up virtually bankrupt! They sold me property that in the end I couldn't get finance for. Yes it is a huge scam. Matt George told me I could get all this finance and could afford to by all of this property off his stocklist. So I went shopping. Chose a property and signed the contract.

Then I found out that they make 6% commission on the sale. Get paid 3% upfront once the contract of sale goes unconditional. Then you go to settle and they tell you can't get finance. Not to mention the trailing commissions they made from financing my house.

I couldn't get finance. Even though I had had a substantial pay rise and interest rates had dropped.

I lost my deposit and got sued by the developer for damages. Left me out of the cold. It will take me years to recover and I'm no spring chicken. So much for wealth creation - who is it making wealthy - Matt George that's who.

Take my advise - steer clear they are no good! Promise you the earth and deliver a whole lot of misery and debt. Terrible stuff. Wouldn't want my worst enemy to be going through what we are going through.

A Sad Erin B.
 
Matt George & Money Choice

Forgot to ask has anyone else had a bad experience with Matt George & Money Choice?

I would love to hear? It has been such a lonely & isolating experience.

ErinB
 
I wonder how many of the people who bought otp and struggling to get vals done, went thru companies like these, and are now at the bad end of the scam.

Seems to be a spate if threads about this, but people are still being suckered into the front end of the scam.
 
I wonder how many of the people who bought otp and struggling to get vals done, went thru companies like these, and are now at the bad end of the scam.

Seems to be a spate if threads about this, but people are still being suckered into the front end of the scam.

Sadly as a broker there is always the temptation to get involved in these kind of things to increase the commission. It's potentially a good money spinner if you can find suckers to sign up for it as commissions are really high. Of course I don't personally but I am sure many do...
 
Totally agree with everything above.

I also think the OTP purchasers need to take on some of the responsibility. We have clients come to us all the time in desperate need of finance for an OTP deal they signed up to a couple of years ago without carrying out any real due diligence - on either the property they're purchasing or how they're going to go about financing it.

Cheers

Jamie
 
Erin B.

Not specifically with that lot but i know friends who have bought OTP without my knowledge and it has all just blown up in their face.

Not fun. Sorry to hear of your experience.
 
So what's the latest update with this company ?

If many people fall into this scam then it should be reported to the ASIC or DFT?
 
Erin B.

Not specifically with that lot but i know friends who have bought OTP without my knowledge and it has all just blown up in their face.

Not fun. Sorry to hear of your experience.

conversely I have a bunch of clients that have done ok,even in recent times, and very well when the market was moving many many moons ago.

OTP needs to be individually assessed and has a bunch of added risks that need to be considered.

The much flogged stamp duty savings in no way make up for those risks

ta
rolf
 
Dont forget about Responsible Lending!

Jamie M I know we can all say it is buyer beware or caveat emptor that the consumer should do their due diligence here with buying OTP. But Erin you say you entered into a contract on the understanding that you could finance these purchases? That is what you said in your blog. That is my understanding of what you have stated. Yes?

May I remind everyone that Mortgage or Financial Brokers are bound by the legislation to foster responsible lending practices. These laws are covered under the Consumer Credit Protection Act 2009 which covers unconscionable and irresponsible lending to consumers.

ErinB, what you have blogged here is a disgrace! This should be happening in our country to fellow Australians. This is the sort of thing that happened in the days of the spruiker Henry Kaye and he went to jail for 8 years. Actually it sounds similar to Kovelan Bangaru too.

If people are told they can finance and afford to purchase a property and they proceed to purchase under this advice only to find that this is not the case then one can say there has been negligence in the brokers advice can they not? Fraud and misrepresentation too I might add! They shouldn't be selling you something and then pocketing the commission!

Sounds like a breach to the Competition and Consumer Act 2010 too.

Hmmm Erin B, by God I would take this to a lawyer.

You should also go to the Credit Ombudsman Service Limited or COSL and see if the broker is a member. You could then lodge a complaint with them.

Definitely ASIC and the ACCC should hear about this one.

A disgrace to see.

You relied on the advice of a professional and have been treated appallingly.

Not on ErinB and my girl not just up to your being the buyer beware, you relied on “expert” advice and you expect that advice to be true and proper.

I am sorry this has happened to you. I can see why you are sad. Hopefully some of my ideas will help. How very messy for you. Let us know of your progress I would be interested to hear and of any others affected.

Yes the authorities need to hear about underhand players in the industry.

Not on for hard working Australians to be taken advantage of.

Judge Judy
 
Jamie M I know we can all say it is buyer beware or caveat emptor that the consumer should do their due diligence here with buying OTP. But Erin you say you entered into a contract on the understanding that you could finance these purchases? That is what you said in your blog. That is my understanding of what you have stated. Yes?

Hiya

Not talking about Erin per se - rather I'm talking about clients who we haven't spoke to previously and come to us in desperate need of finance for an OTP deal that's about to settle and they hadn't carried out any DD (particularly in regards to financing the deal) before they exchanged contracts a couple of years earlier.

Cheers

Jamie
 
Well a broker should not be telling someone who bought OTP that finance is assured - no one knows what will happen in the 2 years or so it takes to build and complete the project. Credit policies can change drastically in-between and so can the purchaser's financial situation that impacts on serviceability...
 
Well a broker should not be telling someone who bought OTP that finance is assured - no one knows what will happen in the 2 years or so it takes to build and complete the project. Credit policies can change drastically in-between and so can the purchaser's financial situation that impacts on serviceability...

As is often the case I suspect there are 3 sides to this story,and perhaps even 4

the borrower

the broker

the vendor

the "truth"


ta
rolf
 
Top