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Discussion in 'General Investing Discussion' started by Sclobbi, 17th Apr, 2007.

  1. Sclobbi

    Sclobbi Member

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    ACT
    Hi. I need some advice. I am looking at investing in property. Before I go ahead I am trying to learn something about the company I may go through. Has anyone heard of xlr8? I would love some feedback. Thanks
     
  2. Glebe

    Glebe Well-Known Member

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    You mean these guys?

    Welcome to XLR8

    Never heard of them. Is this viral marketing?
     
  3. Nigel Ward

    Nigel Ward Team InvestEd

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    Hi Sclobbi

    Why do you feel the need to "go through" anybody? Can't you just use the web, local paper and see agents etc?

    I have a simple rule of business...if someone's involved between me and the asset or service then they tend to want to get paid for it. :rolleyes:

    The question to ask then is "what value do they add". If there's no TRUE value add then you don't need them.

    If it's simply a matter of buying in an unfamiliar state/territory...then why not use a buyers agent? At least they'll be working for YOU!

    Just some thoughts.

    With respect to XLR8 they're mentioned in this article Top property firm accused by buyers - National - www.theage.com.au

    Cheers
    N.
     
  4. Sclobbi

    Sclobbi Member

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    Thanks for your response Nigel. I appreciate it. In answer to your question - the reason I need someone is becuase I don't want to do it myself. I don't have the time or interest, nd am not comforatble managing this myself. I am quite nervous about the whole thing actually. I don't understand much about finance and therefore want a professional to handle it for me.
     
  5. Sclobbi

    Sclobbi Member

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    Thanks for your response Glebe. I don't know if it is viral marketing or not. Tha is what I am trying to find out. I am very naive in this matter, which is why I am seeking advice and trying to find out about the company.
     
  6. Jacque

    Jacque Team InvestEd

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    Hi Sclobbi

    Looks like you're simply after a recommendation for a good finance broker?

    If so, let us know and I'm sure there are those on here who can pass on the details of someone trustworthy and independent down in ACT. I've never heard of the mob you've mentioned, and after reading The Age article, I wouldn't touch them with a ten foot pole. As far as I'm concerned, be very wary of any spruiker or middleman who claims they can find you a property at "wholesale" or with a genuine 10% discount. Maybe I'm getting cynical in my old age, but I take such claims with a bucket of salt and some further investigation.

    As far as purchasing property goes, where are you looking?
    What's your budget?
    What cashflow can you afford to invest in property?
    What are your goals and plans for investing in property?

    We're all here to help and learn from each other- so ask away!
     
  7. Sclobbi

    Sclobbi Member

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    Yes they certainly haven't ever suggested a 10% discount to me. But i have been impressed with thier model and the fact that they take care of all the nitty gritty for me.

    I am looking at purchasing a property in St Marys. Apparently accordingt to thier calculations it is well within our means to purchase this property. Here are my current stats
    Income: $100 000
    Current Mortgage: 170 000
    Current evaluation of house with mortgage $320 000
    I really got sold on the tax thing. They have predicted it will cost me about $170 per week which will cover all costs and help me pay my own house off a lot quicker.
    The house at St Marys will cost $330 000.
    I do not know sydney well but understand that it is not a very good suburb. Will this effect my investment if i choose to go ahead?

    Please help!
     
  8. Nigel Ward

    Nigel Ward Team InvestEd

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    The tax benefits will be there (to a greater or lesser degree) regardless of whether or not you buy a property suggested by a particular organisation.

    You can pay a quantity surveyor around $300-400 plus GST to provide a depreciation schedule ... you don't need and in fact don't want the person marketing a property to provide that...it may seem easy but pay YOUR OWN expert to get that info.

    St Marys in Sydney? :eek: I go out there semi-regularly for sporting reasons and it seems to me $330k would buy half the suburb! :confused: :eek: (I'm exaggerating)

    Have you looked on domain.com.au or realestate.com.au at what $330k will buy in St Marys? http://www.domain.com.au/Public/Sea...,14,6&ptdes=Houses&searchterm=St Marys&page=7

    If you want to go with this advisory group that's fine...no doubt it will be slightly easier to be spoonfed. But that's not how you learn...and nothing worthwhile in life is ever easy. Take the time to learn about property investing...you could for about $100 (or about bus fare to the local library) buy a couple of good books which would explain the key concepts.

    There's no rocket science, or secret magic about successful property investing...but equally there aren't really any shortcuts.

    Good luck with it.

    Cheers
    N.
     
  9. Jacque

    Jacque Team InvestEd

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    Nigel is so right on this one- and I agree with him that you do need to learn the basics for yourself and at least understand the rationale behind your decision to invest. It's your money, after all.

    Why St Marys? I know historical cg rates will show good growth from the last decade, but most of Sydney did as well and it's certainly not my pick for a good investment area in Sydney at this stage of the cycle.

    If you have that much to invest, I'd be looking at higher growth suburbs closer to either Sydney or Parramatta CBD, preferably something in a more established suburb. For example, I recently settled for a client on a 1bed unit in North Sydney (with parking) for just under $300K. It was a bargain :D but if you're willing to consider high demand areas such as the lower north shore, the inner east (Potts Point, Elizabeth Bay) and even selected areas around Parramatta (ever expanding with great growth forecasts) then I believe you will get better value for your investment, over the longer term.

    If you're too busy, or lack the time to do all the research and legwork yourself, then consider using the services of a good independent buyers agent who will work only for YOU in getting the very best deal in the current marketplace.

    Read as much as you can, and continue to seek out the answers to your questions. There's a lot of experience on forums such as these and a wealth of information available in books and magazines (API is an excellent start) as well.

    Don't focus on the tax breaks, however, as the sole reason for you investing. Remember it's all about capital growth!
     
  10. Steve

    Steve Well-Known Member

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    Location:
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    Sclobbi,

    From what you have said, I have only one piece of advice; contact Jacque's company House Search Australia and get them to help you - truly independent advice and sensational service (not to mention seasoned investors themselves).

    Cheers

    Steve
     
  11. shake-the-disease

    shake-the-disease Well-Known Member

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    Location:
    Melbourne
    Hi,

    You are probably going to get ripped off going to an all in one company. This is not something to be lazy about as you will have hundreds of thousands at stake here.

    All you need to do to greatly reduce your risk and to come up with a far better investment is select 5 people to help you. A broker, a buyers agent (BA), a solicitor, a quantity surveyor (QS), and a property manager (PM). You may also consider changing to a PI savy accountant. You could do a lot worse than using this and/or the somersoft forum to select all 5 of those people.

    Here's a step-by-step minimal effort method

    1) Find out how much you can afford to borrow by contacting a PI savy mortgage broker
    2) Decide the city/region where you are going to buy. This step is one you must must do for yourself. It doesn't have to be down at the suburb level. For example you may decide: inner Brisbane, North Adelaide suburbs, bayside Melbourne or whatever.
    3) Select a buyers agent to source an appropriate property in the area you decided. The BA can refine your selection, but should not make the selection in the step above for you as they specialise in an area.
    4) Discuss with your accountant what entity you should buy the investment property in (own name, tennants in common, trust, company etc). Optional step: consider selecting a new accountant that knows about property investment if your current one doesn't.
    5) Purchase a property via your BA with the assistance of the broker and solicitor you selected
    6) Get a depreciation report done using a QS
    7) Select a PM to find a tenant and manage the property

    If that sounds too much effort to bother with then I'd advise that you should not go into property investment.

    cheers :)
     
  12. Nigel Ward

    Nigel Ward Team InvestEd

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    Great advice Shake!
     
  13. Sclobbi

    Sclobbi Member

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    Location:
    ACT
    Thankyou for you very welcomed and obviously knowledgable advice. It is much appreciated. I will certainly take it all on board and do some more research.

    Can anyone tell me about Firstmac?

    Is what you are all trying to tell me in a polite way is that I would be crazy to buy a investment property in St Marys. I was hoping anywhere in Sydney would be a pretty sound investment, even if it was a bit of a dodgy suburb.

    I am visiting Sydney on Thursday to check it out more.

    Thanks again.
     
  14. Nigel Ward

    Nigel Ward Team InvestEd

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    Make up your own mind following your visit. But also get some historical data on various suburbs' capital growth performance.

    It may in fact be that you're better buying an established but smaller property (maybe even a unit) in a suburb closer to the CBD or beaches with strong historical growth than picking up a house in a suburb with poor growth history.

    Who knows? Not me, but the purpose of our comments is to make sure when you do make a decision, that it is an informed one.

    Jacque is too polite to mention, but she's buyers agent in Sydney. Check out her website House Search Australia - Sydney Buyers Agents and give her a call. I'm sure Jacque or Theresa would be happy to freely give you their thoughts on the Sydney market...in fact you may be hard put to shut Jacque up talking about property!!! :D

    Cheers
    N.
     
  15. Jacque

    Jacque Team InvestEd

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    Hi again Sclobbi

    Shake has given a sound plan outline there, but it sounds as though you're still trying to locate finance, if you're asking about Firstmac? Why not just talk to an independent broker who can establish your budget and set you on your way to getting to step 2?

    I can happily recommend Rolf Latham who frequents this forum
    Mortgage Brokers Australia
    Ph: 1800 08 20 80

    Naturally, there's others as well but he's my personal recommendation.

    What are your plans for your Sydney visit next week? It's a big city, so you'd be wise to narrow your reccie trip down to the areas you're interested in and learning as much as possible beforehand. Good luck :)
     
  16. Jacque

    Jacque Team InvestEd

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    Gee thanks Nige :)
    I admit that I love talking property, but I do have other interests, you know...umm... when I compile a list, I'll let you know....;)

    Mind you, it's great to be working in an industry that I'm passionate about. It makes so much difference :D