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.

Stephen Sumner – Professional Property Investor & Property Strategist
Ruby Homes PTY LTD and Toorak Property Consulting Group PTY LTD
0422899122

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

Stephen Sumner – Professional Property Investor & Property Strategist
Ruby Homes PTY LTD and Toorak Property Consulting Group PTY LTD
0422899122

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.

Stephen Sumner – Professional Property Investor & Property Strategist
Ruby Homes PTY LTD and Toorak Property Consulting Group PTY LTD
0422899122

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.

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Thinking of buying your next investment property using a SMSF. Email me for a copy of my SMSF EBook.

Thanks guys. I appreciate the feedback.

Stephen Sumner – Professional Property Investor & Property Strategist
Ruby Homes PTY LTD and Toorak Property Consulting Group PTY LTD
0422899122