Hi all. Being a time-poor newbie interested in +ve CF property, I’m trying to do as much research as possible before diving into the deep end.
– A company called “Investment Property Solutions” have sent me a glossy colour brochure advertising their services which include helping clients select investment properties.
– I believe they are owned by RAMS (our mortgage holder). I was wondering if anyone here had heard of them or had any comments about them. Any feedback appreciated…
– thx, Neville
–I’ve never heard of them but is there a web address on that glossy brochure?
Cheers
SonjaNo, no web address. In fact, I don’t believe they have a website. I tried looking for it over the last few days.
-NevilleHi Neville,
I can’t say for sure about a web address, but you more than likely got a pamphlet in the mail, yes???
They often run their “free” information seminars at Council Halls throughout Melbourne, but that is about all I know of them.
Cheers,
Jo
Hi Neville,
Cannot comment specifically on IPS but there are some questions I picked up in an article I came across earlier this year + a few of my own that may help you in your decision making process.
Some thoughts for you to consider.
1. How long have IPS been in business?
2. How many investment properties does your ‘consultant’ own?
3. How long has your consultant been investing?
4. How does your ‘consultant’ earn their money?
5. What will they get out of each and every purchase?
6. What service do they offer?
7. How much does it cost to use each aspect of their operations?
8. Can you use your own mortgage lender? property manager? valuer? If not – why not (it is a free world)?
9. What sort of after sales support do you get?
10. Does their approach fit comfortably with you?
11. How much pressure is bought to bear?
12. Are all decisions made in IPS’s presence?
13. Are there rent guarantees? (Run away fast if there are!)
14. How does the price compare to similar properties on the open market?
15. ASIC/ Ministry of Fair TRading Issues?
16. Where have IPS’s past sales been? What were they? How much is the open market paying for them now? What are they rented for now?
17. What are similar properties (to the one being considered) renting for? Check with a couple of REA in the area?
18. What is the vacancy rate in the area like?
19. What infrastructure is planned for the area?
20. Are brochures high on ‘gloss’ and ‘glitz’ and low on facts?Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Thank you Derek for such a comprehensive list of questions. It certainly gives me a good idea of what to ask when I contact them (and others for that matter)…
Cheers,
-NevilleDerek on point 13 rental guarantees, dont know where you invest but the are very common and popular in Tassie and in Launceston I have done 5 deals for investors with guarantees in place this year.
Very happy people.
All are only $5 or $10 above actual rents in the area now, with full research done to validate with other agents. Just another carrot a vendor sometimes applies to offer piece of mind to new investors.
I agree that for off the plan properties it is something to be cautious of.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Hi DD,
As with all (?) real estate generalisations there will usually be an exception (or 2 or 3) but in my readings, dicussions and experiences rental guarantees are usually included with overpriced property that has a ‘usually inflated guarantee’ to make the investment ‘better’
May be I should modify no 13 to If there are rental guarantees – conduct thorough research to ensure market rates and prices apply.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
– Nearly 18 months down the track I’d like to pose the same question (pls see my initial post at start of this thread). Perhaps by now someone in this forum has had some experience with IPS (Investment Property Solutions) or perhaps has some addtional information.
– If you have anything on IPS, I’d very much like to know about it.. Any experience at all (good, bad, ugly, whatever) I’m very interested…
– Thx…
–hi nevilleg,
all i know from conversation with a rep:
1. he owns NO property
2. they are paid by vendor
3. hard to get any concrete info/offers to ‘face to face’personally i dont think i will be using them[biggrin]
Like any sourcing body or organisation it may be they charge you nothing directly, but then they have all of their costs swallowed in the purchase price of anything you buy. Which in effect means you pay for these services anyway.
They usually charge a percentage of the purchase price, so it is in their best interest not to discount the pricing for you.
I offer a service on a flat fee basis so I dont have a vested interest in the end price paid for property. This means I DO work for you directly and this leads to the old addage “you get what you paid for”.
Derek also asked the question, quite rightly, about ASIC compliance. Well I had the NSW fair trading call me recently regarding trading as a buyers agent and not being a real estate saleman. When I explained I was a qualified Financial Planner and do not source NSW property, only Qld WA and Tassie at present, they went away saying they would get back to me. That was a month ago and I am not holding my breath to hear from them.
Derek is 100% right, I looked at his list and went wow, thats thorough. I did a mental check of where I stand with each point and came away smiling.
CF+ are becoming hard to find unless you do a punt on increasing your return through a reno, or buy in remote one horse town localities. Unless you choose to take your buying offshore, and be aware there are foreign exchange issues as well as different tax considerations, it is unlikely you will experience the magic returns locally in major centres.
Buying outside major centres is like buying non blue chip stocks. Its all a horse race and a punt. I havent heard of IPS and I have 5 with Rams myself.
Another group that you need to be aware of is The Investors Club. Which prefaces everything with we are not agents or a financial institution etc etc, but go on to show their totally managed process where you buy their vetted properties. When a sale is made the “Club” gets upto 6.6% from the vendor of the money you have paid for the property.
Not once in their discussion last Monday night did they cover how you were to afford the neg geared properties and vaguely put up the living off equity down the track scenario. This is at best a deflection of an uncosted process. The properties all started at $300k and went up. This would mean that at the 6.6% the wouuld get $20k of your money. $10k is then given to the “Club” management and the balance trickles down the food chain to the solicitor, broker, your sponsor etc to cover their “expenses”.
Seems quite the nice little pyramid structure to me. So be careful and keep getting in here on the forum and be careful. Its the slower times in the cycle that the scammers seem to rear their ugly heads. All with smiles and glossy brochures and big pockets.
Happy Hunting
DD[cowboy2]
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!Hi all
IPS do have a website. You can find it at http://www.investmentproperty.com.au
I have used them only once, a few years ago now. It was when they had originally started and had good people. The person who looked after me was very thorough and knowledgeable. However, that person has now left the company.
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