Premium Finance. Anybody know about these guys?

Hi all. Has anyone heard of Premium Finance? I've just had a cold call from them offering to send a consultant to show me how I can access a $6500 tax rebate for mortgage payments (no obligations). Some new government incentive. I'm still curious as to how they make their money.

Any comments appreciated.

beware of cold callers

Terryw

Hi Stephen

Listen to what they have to say and then put it on the forum.  It sounds like they are just offering something that you can get through any mortgage broker , but you never know, it may be something new that not many people know about.

Cheers

K

Are they tax advisors? Probably not. Sounds like yet another 'morgage reducion' type scheme that gets 'sold' for several thousand dollars, when any switched on lender (or switched on business person or relative or mentor) should help you with for zip.....Keep us posted but please be cautious.

Meeting the consultant tonight. I'll keep you guys posted. I managed to find the website and actually rang the customer services to try and get a better idea of what they do.http://www.premiumfinance.com.au

The fact that they quoted a dollar amount for a tax saving without knowing your financials would suggest a meeting will be a complete waste of time. People are always looking for some secret that will put them ahead of the pack, so making claims such as this is good marketing, but there is no way they will have better knowledge of potential tax deductions than any decent accountant. I would go further though and say there is a 99.9% chance that they will know less. 

I remember speaking to a forum member some time ago who had received advice on structuring their loans from one of the many debt reduction companies out there, and what was proposed to this person was blatant tax evasion. 

I should note that I know nothing about Premium Finance, they might be fantastic, but from the sales pitch I doubt it.

Regards
Alistair

Well I can now give you some feedback. The service they offer is all about creating a strategy to reduce personal debt, access better tax benefits  and hence have more money to invest in property. (I think the whole $6500 tax rebate mentioned on the phone was just an inexperienced telephonist). Where they make their money is on the commission from any  future products you get through them (Apparently they can get better rates on anything from mortgages to house insurance).
One other cost is the $295 now which will get us a day with at their office in Melbourne to personalise our strategy. This actually includes flights there (for us from Perth) and accommodation.  Even if we don't even use any of their information, return flights for  two of us + accom for $295 total isn't a bad deal.

I am with Alistair they maybe wonderful but anyone who charges upfront for a residential  mortgage brokering service linked to debt reduction is taking advantage of you.

I tell you what for half that amount I would do it through in a Financial Plan and provide you with a free email monitoring service for the first 12 months.

Seriously how can someone tell you over the phone they can save you $6500 of Tax rebates.

The quicker these tele marketing companies are out of business the better.

Cheers

Yours in Finance
Richard Taylor
Ph: 07 3720 1888
Residential & Commercial Finance Broker.
richard@tayloredfinancialsolutions.com.au.

Thanks guys. I appreciate the feedback.

Proof is in the Pudding...

Hi There, I actually designed Premium Finance's Web Site. I also purchased a property through them at Nundah in Brisbane. Since then, it has had about $30k in capital growth. I couldn't be happier! I am about to purchase my second property through them too. Since making their web site, I have got to know a few of the people in their office. All that I have met are great people, that work FOR their clients and their clients, including me, are well looked after.

They way I look at it is that YOU CAN learn about property investing and finance yourself.... hell, I can learn about ANYTHING.. it just takes time. One thing over the years that I have learned, is to use professionals! It doesn't matter if it is an electrician, personal trainer or even property investing.

Premium Finance's staff are qualified too.

For those of you on this message board wondering about Premium Finance, I have no hesitation in recommending them. They have served me extremely well. There are good and bad in EVERY industry.... these are the good guys.

Hope this helps,
Ben W

Thanks Ben

Premium Finance's staff are qualified too - Can you tell what they are qualified as ?

Cheers

Yours in Finance
Richard Taylor
Ph: 07 3720 1888
Residential & Commercial Finance Broker.
richard@tayloredfinancialsolutions.com.au.

Proof is in the Pudding...

Hi There, I actually designed Premium Finance's Web Site.

Thanks Jonesy

"I cannot avenge my partners death with this pea shooter"- Rainier Wolfcasle

Hi All
I went serching to find out more about Premium Finance, My Wife Anne and I did the $295 trip to Melbourne
and months later, after lots and lots of stuff-ups, The whole thing has gone terribly wrong. I won't write more about this yet because I Intend to give them the chance to fix the problems. Cheers Annican.

Premium managed to sort out the few problems we had, and I have been very satisfied with there approach toward the customer
This is a great setup if you want someone to do the work for you but probably costs a little more. All in all I have found Premium to be a reputable company with a good product.

Can anyone confirm having to pay an initial $5000 fee to become a client prior to using Premium finances refinancing or purchasing services.
I would just like to check that everyone has had to pay this or is it  just me.  Its not mentioned anywhere on the website or during the phone conversations, only at the very end of the visit to the office.  Has everyone had to pay this or am I getting the wool pulled over my eyes.
All responses will be appreciated.
PM me if you wish although I see no harm in making this information public.

Yes, I think everyone cops this. Makes you a "client for life", apparently. They do not charge this when/if you buy more properties through them. They will also try to get you to use their "preferred" lawyers for conveyancing and to manage the rental property as well. All signed up on the same day, before you fly home!  
If you have an existing mortgage it will probably be refinanced with a particular bank and your investment loan could be spread between more than one lender.
So they make money from the fee, no doubt from the commission paid by the developer for the land-house package or whatever it is, from managing the new rental property and the commissions on the new and, possibly, refinanced loans. And the plan is that you come back to buy more.
They have expanded into Melbourne after doing quite well in Brisbane. Have an idea they concentrate on Melbourne's outer suburbs, where house and land packages are plentiful. They have probably been priced out of Brisbane in some regards.
Read between the lines ...
Hope this helps.

I was just trying to say it a tad more subtly

Hi there, In regards to Premium Finance did the trip to Brisbane to head office not really knowing much about property investing.
Was going to invest my money in managed funds and super originaly, After the meeting wich was very informative ( took a while to get my head around it!) headed back home to think things over. After inquiring with estate agents and getting values of properties mentioned called back to agree to let them set up my finances to invest. They were very helpfull and informative through the whole process and have even helped me with financing properties in my home state as well. I paid the client for life fee as they stated that I would be able to use their help for financing property elsewhere. To my knowledge they make their money through developers commissions.

I am very sceptical of forum posts that are glowing of  a particular product or service that has had negative feedback such as Premium Finance. If a forum member has posted a comment the same day they joined then I would be very suspicious of the authenticity of that post.

Cheers
Frank

Hi again,
 
was just saying that my experience with them went ok so far.
Don't work for them nor was trying to give a glowing post of a product either.
Would have been cheaper and easier to go to a broker in my own town but the properties here were a bit above my price range at the time and I didn't know were to start.

Was told by a property developer in Perth about Ten years ago how to purchase a property every two years using IO loans and equity in our home wich we owned at the time. Imagine were I could have been now! Stupid me did not take his advice and spent all my available cash on cars even refinancing my home to pay for them!

Sure they have had bad feedback and I do think I payed to much to be a client for life but hopefully will be a better investment than the dozen or so buckets of rust I spent a fortune restoring thinking I could double my money but had to sell for a loss to make ends meet in the past.

I will have a crack at it and hope it pays in the long run.

Cheers,

Shane Ex Panelbeater now working in construction.

Well there seems to be a some small time finance brokers on this board. I can assure you that I am a REAL person and no, I don't work for premium finance. I have done web site work for them however. That is how I came to meet them.

I wouldn't hesitate recommending them, and yes some people may see my post as biased because I have done work on their web site. However, after making REAL capital growth from doing what they say, I am more than happy.

Some people could see other little mortgage brokers on this site as being biased as well. Putting their web site in their signature for all to see and commenting on other people's businesses. This does not seem to be very professional to me.