They tell me they make money from both the upfront fee (9-10k or 2.2%) and also sales commission from the developer (which I will ask how much this is). I don't have a problem with people making a cut as long as I'm paying the same or less than going direct (just like mortgage brokers) and that all cuts are disclosed.
The theory is buying via a group is you get better bargaining power with the developers - i.e. fixed price contracts vs variable add-ons, guaranteed start/end dates and so on.
I'm going to have a second meeting with their more senior advisor.
If anyone has any questions they want me to ask them let me know.
That's interesting, when I commented on this last November, the developer kickbacks, sorry sales commissions, were not disclosed and everything was said in such a way that suggested absolutely no other commissions other than the upfront *cough* *cough* buyers agent, I mean, mentor fee.
Not to forget the building comms as well considering such a discrepancy between what they stated the cost was and what I was told directly from the builder and developer at the time.
The median used in the proposal at the time was almost definitely Brisbane and not Griffin.
I spent the day up there a few weeks back with a friend who is in the game and it was interesting getting the ins and outs of the whole North side.
What suburb/s are they pushing now, it's either still Brisbane northern corridor or I'm taking a guess at North East corridor of Melbourne.
I did state previously also that I believe the book has sound fundamentals and strategies if your interested in that sort of thing.