Where to start?

[Me 'n' Three]

I have been studying this forum for a few months now and reading as many books as possible to get started in property investment. I now have an investment strategy and feel confident in this strategy (Resi buy hold +ve gear or slightly -ve geared) and feel this best suits our situation.

Our situation is this: PPOR Valued at $450000
Owe $210000 ($70000 in extra repayments)

Income = $160000

No other debt.
Where to now?

We were thinking of becoming members of Destiny financial because we don't want to make any mistakes in the early stages of our plans to retirement (we're both 29) and feel a company like this could give us the education and with it, confidence in our ability to make the right decisions rather than 'going it alone.'

So my questions are:
1. Has anyone had any recent dealings with Destiny Financial Solutions?
2. Do you think a company such as this is beneficial for people starting out or a decent mortgage broker could do the same job?
3. Destiny offer a software package that assists with calculating cash flow. Are there any others on the market that you would recommend?
4. After reading this back to myself, question 4 is are we over analysing the whole process and should we just get into the market and learn from our mistakes?

Thank you in advance

Jade

 

[Jamie M]

Hi Jade,

Welcome to the forum.

I can't speak for the company - but I do enjoy the books written by Lomas (who's the founder of Destiny right?). Your strategy sounds Lomas like (buy and hold positive/neutrally geared IPs) so the company might be right for your needs.

On the other hand, places like this forum are invaluable sources of information and advice (at no cost) and most members are extremely helpful and friendly so seeking advice is never an issue.

It sounds like you've already built up some knowledge about property investing. So, in my opinion, I'd keep reading up on the forum/books and then make the plunge. The more info you absorbe, the better informed you are to make the right choices.

Good luck and all the best!

Cheers,

Jamie

 

[josko]

Hi Jade,

Welcome to the forum.

I can understand your hesitation if you are nearing retirement.

I have not had dealings with Destinay Financial but they are more than "just" a Mortgage Broker. If you are to receive mentoring and guidence, not to mention calculators etc, then they seem to be an advisory service. I would also hazard a guess that they will advise you on particular properties as to where to buy. Perhaps someone else can reply and answer this question for you.

However, if you have been reading this forum you will now there is a wealth of information on it and better yet, it is all free.

It seems you have a clear picture of your strategy and all you need to do is implement it. You have access to multitudes of information at your fingertips.

Why not check out the Where to Buy Link and see what people are saying? Perhaps start a thread and ask people where they think you should buy in Queensland and follow up with your own due dilligence.

http://www.somersoft.com/forums/forumdisplay.php?f=35

You also can't go too wrong with looking through this months Australian Property Investor mag which is highlighting some of the good Capital Growth suburbs in and around Brisbane.

Good Luck,

Regards JO

 

[QLDAGENT]

Agent Point Of View

Hi Jade,

I am an agent myself in Brisbane and have had many dealing with companies similar to the one you mentioned in your post. The two different companies that I have dealt with worked a little differently.
One was a large company that use telemarketers to gather leads and running seminars advertising the fact that you can reduce your mortgage and or become a property tycoon. This company normally deals directly with developers who are building blocks of units / townhouses or who are building turnkey homes. The “property investment companies” are paid a commission by the developer to get you, “their client” to purchase these properties. You may think this is a conflict of interest and I would tend to agree with you. Secondly, this form of company charges the developer more than what a real estate agent can charge to sell his “stock”, therefore I very often see that the developer has priced this premium into the sale price, and you the client end up paying more for the property than if you had dealt directly with the agent.

The second company acts more like a buyer’s agent. You pay the company an upfront fee, say $1500 and then a % of the contract price, normally 2%. I have personally sold 3 properties in the past to a client via a “buyer’s agent”. In all 3 occasions the client ended up paying the list price or more. So to recap, you paid the buyer’s agent $1500 upfront and then you pay them 2% of the contract price say $8000 to buy a property at the list price or more to purchase the same property you could have found on realestate.com.au and dealt directly with the agent.

Now, I know what you will be thinking. I am an agent and I am saying this because I want you to deal directly with me. Well no, I get paid the same commission if you purchase the property direct or via a buyer’s agent and over the past 8 years selling property in South Eastern suburbs of Brisbane within 10km of the CBD I have always had more buyers looking to purchase units & townhouses up to $400k and houses up to $550k than I have had listing to sell them.

Please don’t take this as advertising for real estate agents, most of them have no idea, this is just an insider point of view.

 

[yorkiefish]

hi guys, i was at the same point 2 years ago, reading lots, getting excited by each new book i read and then following the author, and thinking they've done well i'll copy them, and might do the easy thing and let them d it for a few $1000 mentoring etc, and got hesitant at the cost then read more books and again, then got completely bamboozled with so much conflicting info that didn't know if coming or going. i the end i think i did a bit of all of them, on my own lots of research, and have bought +ve cash flow in regional, reno's in frankston, art deco in st kilda, and dual occable as well, so have pretty much covered all my bases, not on purpose, but that's just whats been available thats suited me at the time.
all cash flow pos.

st kilda i bought last novemeber ,when auction rate was 50% i was the only bidder, got a 4month settlemnt and have just re valued at $500k, done nothing to it whatso ever. could have should have bought more then.

if you find a good mb thats your 1st thing to find, make sure they have investment props, ask them how many, don't be shy, also if they know good accountant? also needs to own inv props too, then join a group of investors for free meetings or small price, good to network and be surrounded by like minded people,(we are a minority! only 5%people invest ) also get the pia software by this company. they do all you cash flow stuff and everything you can think of.
then buy something....

good luck.
yorkie

 

[Me 'n' Three]

Thanks

Thanks for all the feedback, were probably going to go with destiny for their education package, and an MB for finances.

Can anyone recommend a good MB in the Brisbane/Sunshine Coast area?

Thanks again

Jade

 

[wobbycarly]

Gold Coast OK? We use Asset Financial Services - have done for several years - the team there are fantastic!

 

[tomred]

Hi Jade,

I am thinking of joining Destiny and was wondering what your experience with them was. Any info would be great.

Thanks,
Ryan.