Has anyone heard of this organisation? Has anyone been to one of the seminars and then taken the next step? Your responses/comments would be appreciated – I know such organisations are the lazy way out – but sometimes you have to wonder if its worth it to just get your first property?
Regards
Hi Dougall
They’ve been around for at least a little while (assuming it’s the same Heritage that’s here in Melbourne).
I went to one of their freebie seminars around 1999/2000. Slick with music and flashy overheads. It was aimed at middle aged highish earning people who owned their PPOR.
Basically it’s the standard negative gearing spiel. Borrow against your home to get a deposit for the IP. Use a line of credit and/or credit cards smartly to defer payments. Buy an investment property that can help you pay off your PPOR quicker ; ).
The whole thing relies on huge tax benefits from claiming depreciation – yield was secondary.
Not sure about their relationships with developers or financiers, so can’t say if it was ‘two tiered’ marketing or not.
Apart from independence and doing your own due diligence I’d be careful in seeing if their style of investing is compatible with what you want and what you can afford.
For me it wasn’t.
Regards, Peter
Thanks Peter,
Yea – I went to one of their seminars last year – it was as you said – flashy. I’m been avoiding them whilst I’ve been doing a lot of reading – and they caught up with me the other day again – have agreed to meet with them late in February. In one way they sound good – because they seem to do everything for yout – but yes it is aimed at “negative gearing”. I think I”m just a little down at the moment because – I’ve read and read – still haven’t done anything and my thoughts seem to be so scattered. Think its time to take a step back – collect my thoughts and devise a strategy – and as part of that I probably will still listen to them – or maybe I won’t – I don’t know – its just one of those days!!!
Thanks for your time – muchly appreciated!
Cheers!
All you have to do to check out this company, or any others like them, is to ask for the lists of their past sold properties.
And then you search the properties and look for the resales. And it’s there that you will find the worth of their advice and their so-called great investments.
This is just so basic, but basic is so often forgotten – until after we take the plunge.
Measure twice cut once, my mum urged. Made me a supporter of sex before marriage that did. And, wow, was I glad. Hubby is great!
Love
Bec
Bec, you actually measured it not once but twice???!!! Would have been an interesting date [
]On a more serious note…
This may not relate to Heritage but the topic of other income sources was raised;
A while back I owned my own software business and the product did financial calcs.
A company promoting the neg’gear system approached me to modify the program for them and in the process here’s what I learned about multiple income streams…
1)They get around $600 – $900 from attendees who sign on – this is for an adviser who will tailor the right purchase / portfolio etc for them. (my guess is there wasn’t much tailoring going on!)
2) They only recommend NEW properties and get a commission from the builder / developer of around 3% – 10%
3) They get a trailer ( probably around .25% of the ongoing debt)from the financier who they get to finance your purchase.
4) They get a “referal fee” from the insurance broker (later learned some set up their own insurance broking firm) who sets up the Building and landlord policies.
5) They get a cut of the Property Management fees but often have their own PM coy to manage the property.
6) They get a commission% from the ongoing maintenance costs like repairs, plumbers, gardeners etc
7) Sometimes can even get rebates from the newspapers they advertise your rental properties in.
Of course, nearly all of these you would be paying one way or another if you didn’t go through them however the difference here is how they channel it all into their pockets to make one very lucrative system.
And nearly all these streams get repeated each time you acquire more properites and you become part of their system.
Now I know why one particular company pays (and can afford to pay ) their presenter $500 a night to do his 1 – 1.5 hour presentation. (Work 5 nights, 5 hours per week = $100k p.a.)
Now I truely understand the meaning of generating multiple income streams from one sale!
Manofaction, tell us about your software.
Thanks,
Pisces
Pisces,
It is no longer mine.
It did calcs to compare mortgage reductions system ( LOC) against standard home loan method.
If you want something like this email me and I’ll put you onto the new owner.
Enjoy
JB
I’m with manofaction on this one.
So many people get screwed so many times and come back for more- Qld was almost built on two tiered marketing scams!
My personal theory. The average person (self included) is always wary about trying a new restraunt, let alone plonking down 500k on a house. But if someone tells you how great the food is, and how you will love it, our hesitation turns to eating.
So, the marketers do their market research. What do people want? retirement, money, give up the job, no tenant hassles, no worries. They then ‘tailor’ a marketing plan ie guaranteed rent (which they will grossly overstate, and then base 40 years worth of figures on it!), comment on how easy it is, how you only need to be commited, dont listen to your friends and relies who knock you down, cause they are lazy and doing nothing. Part qld scam, part amway!
Do your own research. A couple a hundred bucks on books and a few weeks will reap huge rewards, and by NOT buying through a sheister, you will probably save enough for a deposit!
Just accept the fact that you, yes, you , if you learn, and look at enough places to judge relative values, you will be miles ahead of the lazy dunces in the Henry Kaye (I’m off to do a skasie, in the wonderful island of majorca)
Got to go now, my spleen is venting
Most of the people caught by Henry Kaye were NOT “dunces”. By mocking the victims of Kaye we display an appalling lack of care for our fellow citizens.
Let’s get one thing straight – Kaye is a fraudster. He caught people because he lied to them. It’s as simple as that.
Mocking victims of scams is a method of trying to tell the world, “Look at me, I am so smart because I didn’t get caught.”
Yes, well one day when you get caught, you won’t want your pain made worse by being described as a “dunce”.
Blaming or mocking people who are the victims of property scams is the same as blaming rape victims for making poor dating decisions.
Enough!
Bec
Bec,
[quoteMost of the people caught by Henry Kaye were NOT “dunces”.][/quote]I totally agree with you!
I attended one of HK’s intro seminars to learn what all the “noise” was about.
Most of the people I met were well educated or in upper / senior positions within their careers. They were definately not uneducated or stupid people.
Yet, many got seduced.
But this is nothing new. It happens in all sorts of avenues.
Example; A friend of the family became a devotee of a “new age” type group that believed a giant spaceship was “parked” behind Jupiter.
It was so big, it could cast a shadow over all of Earth.
The occupants were bringing messages of love etc to Earth and, well, the rest just defies any reasonable sensability… and I’m an open thinker!
Was he soft in head or somewhat stupid? No!
He was the State Manager of a very, very large and well known medical services organisation! He oversaw a budget of hundreds of millions and hundreds of staff.
He is no dummy!
Whether it is financial freedom, spirituality, physical fitness, the latest beauty treatment or whatever. You’ll find smart, intellegent people falling for the dummest of dumb things – things that to somebody else is absolutely obvious that it’s not right.
They swept up in the EMOTION. They want so much for it to be right. Their “self talk” tells them it’s right, even when they smell a rat because by then they don’t want to admit they got caught and be seen as dumb or gullible to their family, friends or peers.
A great article appeared in the recent Readers Digest about a smart guy caught up in the Nigerian Scam. He openly admits that even though he now KNOWS it’s a scam and he’ll NEVER see anything for his money, he still gets excited when he recieves yet another request for money and fights the urge to send it! [8]
Go figure!
In a “former life” I worked for a leading Bank. During that time, I saw many documented instances of clients loosing money to all sorts of scams. Many of these clients should have known better.
In fact, I recall the boss showing me something one day about an investment scheme. I read it and laughed because I thought it was a joke! But he then showed me how one of our clients
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