Which Investment Company and What Area?

Hi
I have never bought an investment property before...
I live in Berwick VIC.

I have been speaking to 2 companies about purchasing my first property.

Option 1:
is a company called Legal & General http://www.legalandgeneral.com.au/ who only offer property in the Berwick/Casey area (same place where I live).

Option 2:
is a company called Australian Property Investor Planning http://www.propertyinvestorplanning.com.au/ who offer properties all over the Melbourne area. They are recommending the western suburbs.

I am looking for any help or advise regarding the 2 companies (reputation etc), and whether I would be better buying in Berwick or the Western Suburbs (Point Cook, Caroline Springs etc)....

Any help given gratefully recieved...
 
Sorry, can't help you there but will be watching this thread as we are in a simlar situation. We're just about to move to Berwick and will shortly be looking for an IP.

We hadn't really thought about using an investment company, so will be interested to see what replies you get.
 
Before you buy from an investment company, go and look at what is available in new second hand homes. Often they are much cheaper .. as soon as you take posession of yours it will be a second hand home too.

If they harp on about the stamp duty savings, this is fine, but if you are buying the land and paying interest on it and making progress payments and paying interest on that, work out how much interest you will pay before you get your hands on your property.

Rarely have I ever seen a property sold by an investment company that is worth what they are sold for .. but these could be upstanding vendors, you never know.

Also visit the estate and ask the bulk builders (Henley, Porter Davis etc) how much they will charge you for the same thing if you go with them.

good luck

RightValue
 
As an aside

Get your finance, legals and accounting done elsewhere.

While the one stop shop is convenient, its often not in your best interest

ta
rolf
 
sorry dude...

TIC (The Investors Club) is another company kicking around that has copped a hell of a bagging on this forum over the years - there are a few folks that started off there and still defend it for the right people...

They are another one stop shop - which suits some people - but please listen to Rolf's advice and source the services elsewhere...

cheers
:)
 
sorry dude...

TIC (The Investors Club) is another company kicking around that has copped a hell of a bagging on this forum over the years - there are a few folks that started off there and still defend it for the right people...

They are another one stop shop - which suits some people - but please listen to Rolf's advice and source the services elsewhere...

cheers
:)



Cool thanks - sorry to be so green about this stuff - just started on the band waggon.
Good advise - I will keep an eye out for them!
 
Cool thanks - sorry to be so green about this stuff - just started on the band waggon.
Good advise - I will keep an eye out for them!

Then Welcome Aboard!!!!!!!!!!!!!!!!!!!:D

never apologise for being green - we have all been there...

most importantly though, this is a place where you can be free to ask the "dumb questions" - there will almost always be an answer here.

All the best with your journey!!

UC:)
 
Option 1:
is a company called Legal & General http://www.legalandgeneral.com.au/ who only offer property in the Berwick/Casey area (same place where I live).

Option 2:
is a company called Australian Property Investor Planning http://www.propertyinvestorplanning.com.au/ who offer properties all over the Melbourne area. They are recommending the western suburbs.
Hi naifyboy.

Now that you have recommendations from these companies (as in which areas to look at), why don't you do a bit of your own research (in those areas) and see how prices compare to what these companies are offering you.

I'm not saying you should or shouldn't be looking at the areas recommended by either but by doing so, it may help you to decide whether they may be charging you more than you should be paying.

Regards
Marty
 
Hi Naifboy,

When we first started being interested in IP, we went a long to a property seminar and almost got stuck buying an over priced apartment in the docklands. Not saying that all investment companies and property groups are disreputable but we have decided to look for an investment property ourselves. We were scared and naive when we began but now we've gained enough confidence through doing our due diligence, research, reading books and magazine, posting on this forum that we are no longer afraid to do our own leg work in finding our first investment property.

Good luck.

Cheers.

Andy
 
well? the point is?

Sorry for the delay.

So when you buy a new car, would you prefer to go to one place that will "find" you a car (maybe from their range of stock), and organise the car loan for you if you needed one - i.e. a convenient one-stop shop where they do everything for you (at a price of coruse!).

Alternatively, would you decide on a make/model first, then go to various dealers to see what was available; and if you needed a car loan, to go to various lenders and see what the deals were?

Finally, if you bought a car second hand, why? What motivated you to go to a second hand vehicle?

Cheers,

The Y-man
 
I'm also missing the point here..?

Currently looking at an IP in SE Qld, i have a company that finds land and arranges builders etc etc....

Why or more to the point why wouldn't i use them, if they are doing all the work up there for me.....bit hard to get to and from Melb weekly to arrange things myself...
 
Whilst I have no experience with the 2 particular companies mentioned in the first post, I have almost inevitably found:

1. you don't get something for nothing (fair enough) - but you may also pay a very large sum simply for the feeling of security, for advice you could get for free elsewhere.

2. they almost always sell you brand new properties (where they get commissions), not used ones - which may compromise your investment strategy, but also create additional issues in terms of repair items etc.

3. they *may* not find you the best conveyancers, financiers....


I agree the challenge is greater if you are remote controlling from interstate - but neither of the companies mentioned do what Baldman is looking for - these people look like they simply sell H&L packages that are sitting there waiting to be sold.

So you would have to ask yourself, if they are on re.com (and there are lots of H&L packages listed for areas like Berwick), why aren't they selling quickly? If they were as good as these companies claim (and granted, maybe they have some "special stock" which are significantly cheaper and better featured than availabe to the public), why are there tons of them advertised?

Example (and this isn't even considering the amount you'll pay for the "Let us find it and arrange it for you" service):

Used house: $275k+

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=25298270&s=vic&tm=1249613599


H&L: $391k + extras

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=25298270&s=vic&tm=1249613599

Ok, so let's say the first one goes for say $330k (20% above advertise price) - that's still $60k you have in your pocket to keep (or to spend on sprucing up etc) - and I don't think the $391k includes landscaping, so it will probably be a patch of dirt front and back....

Things to consider:

1. the cheaper property could be let for less, because there is less loans involved

2. depreciation still applies to older properties - just not as much - but how long will it take you to claw back the initial buy price?

3. in 5 years time, what do you think the actual difference in rent will be between the 2 properties? Neither will be new by then, and there will most likely be newer and shinier just around the corner!






Cheers,

The Y-man
 
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Thanks Y-man.

After a few calls, and a visit to the "Jenman" site, i've decided NO..i won't be dealing with these people

Why or more to the point why wouldn't i use them, if they are doing all the work up there for me.....bit hard to get to and from Melb weekly to arrange things myself.

I fact i have answered my own question...

Because I can't control anything..
 
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