Hello,
I have been approached by so-called real estate advisory companies who said that they can help me buy investment properties. I’m very new to property investing and dont know much about it. Does anyone know if these companies have financial services license to give advice or are they just realestate agents trying to sell me properties? Do realesate advisory companies require a license approved by ASIC before they can give advice on property investing?
Thanks.
Chang
Hi Chang,
Name the companies and I’m sure you’ll get lots of opinions.
Regards
AlistairI think it would probably be unfair if I start mentioning names of companies who have approached me. I really just want to know if so-called realetate advisory companies who help clients find investment properties are licensed and regulated by ASIC to protect consumers.
Chang, just remember that these companies are set-up to make money, so you are probably paying their fees for things you could do yourself, however, if you feel that their fees are appropriate and if it gets you into the property market, then so be it.
Makes it hard to comment without knowing the company/ies involved. There are some dubious ones out there
Chang,
Some do a good job for their clients, others not so good and they all have different structures and methods of doing business. It is simply not possible to comment without knowing who you are talking about.
There are people who post on here who provide these services, you could try talking to one of them. Michael Yardney and Nigel Kibel come to mind, but there are others also.
Regards
AlistairHi Chang,
Most importantly, you need to determine whether the product/service they are selling can fit into your own wealth creation plan and only you can determine that.
Cheers
We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
[email protected]
phone 0412 437 582Hi Chang,
Regarding the property investing company you mentioned: Always get your own independant finance organised no matter how good they say their financing deals and structures are.
You could end up paying too much for the property if you do.You haven’t missed the boat … it is passing you by.
Mnay of these companies are marketing companies that have 20-30,000 commissions loaded into there property. Either do the research your self or use a buyers advocate that works for you not the vendor
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
service and seminarsNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
I don’t think ASIC require licencing by these sorts of companys, just the real estate licence. It may depend on how much of the advice they start giving you.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Originally posted by APerry:Chang,
Some do a good job for their clients, others not so good and they all have different structures and methods of doing business. It is simply not possible to comment without knowing who you are talking about.
There are people who post on here who provide these services, you could try talking to one of them. Michael Yardney and Nigel Kibel come to mind, but there are others also.
Regards
AlistairThanks for the plug Alisair. [blush2]
Both Nigels company http://www.propertyknowhow.com.au and ours http://www.buyingmelbourne.com.au are licensed estate agents and have professional indemnity insurance . We are members of the REIV.
Neither have properties for sale but are paid by the client to find our clients a bargain.
Property marketing companies are paid large commissions by the developer and this is added to the price the invetsor pays.
As others say, you must do your homework very carefully.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auBrokers are often approached by ‘marketing’ companies who wish us to refer customers.
There is one out there that offers us 4% commission (of sale price) for just referring customers.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thank you all for replying back to my posted question.
Is it safe to assume now that so-called property advisors are really just real estate agents (who does not carry Australian financial services license)trying to sell me properties they have on stock?
Also, if the so-called advisors are going to act as a buyer’s agent to help find investment properties for the investor (buyer) and the source of properties that they are going to recommend is from a developer who they know and is paying them commission (i.e. working for the developer)then wouldnt there be some conflict of interest there? Is’nt that illegal as stated in Property, Stock and Business Agents Act?
It is safe to assume property advisors are simply real estate agents. Some don’t even bother to get real estate licences to properly disclose commissions .
I cannot not speak for everyone, however I do not deal with developers or marketing companies I only get paid by the buyer. I work for them not the vendor. Most market companys get huge commissions from the vendor but pretend that they are on your side. When you deal with companies like mine or Michael Yardneys you who that we look for the best and right deal for you
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
service and seminarsNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Originally posted by Lightning:It is safe to assume property advisors are simply real estate agents. Some don’t even bother to get real estate licences to properly disclose commissions .
You are correct- many marketing companies do not even hold an estate agency license.
And Chang is correct that acting as a buyer’s advaocate and getting a commision from the seller is definately a conflict of interest.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.au
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