lesley225Member@lesley225Join Date: 2011Post Count: 16DerekMember@derekJoin Date: 2004Post Count: 3,544
As stated in anothe rpost.
Listen but do not sign anything – tell them you need to speak to your accountant, broker, partner, parents, financial advisor etc before you make a decision.
You are on the verge of making a big and important decision so take your time.
Rocket Property Group do not have their client's best interests at heart. They talked me into buying a house and land package in Gracemere ( Rockhampton) – by the time my house was built the market was vastly oversupplied. Now I am stuck with a huge dud that I can't even sell and now has very low rent. I am very unhappy and feeling totally ripped off. My advice – steer clear!!!SFVParticipant@batinvestingJoin Date: 2014Post Count: 1
I agreed with Anabelle. They were trying to sell me a house an land package in QLD, but after doing some research I didn’t think it was such a great deal and didn’t go ahead with it. My research found that the house and land package was overpriced compared to others in the same area (of course there were excuses such as “But ours is a full turn key package”). I’m not stupid, I was comparing apples with apples. The other issue was and that the estimated rental return was overstated. The majority of rental returns for comparable houses was approximately $50 per week less then what I would apparently achieve. Because I wasn’t satisfied with that deal, another house and land package was presented to me. My own research again revealed the same things; overpriced and overstated rental return compared to what was already there. I walked away after that.
Rocket act like they are your friends and that their advice is free. At the end of the day they are just trying to sell you something, and the fee you don’t pay now for the advice will just be collected from the overpriced property they sell you. And of course they will suggest to use their team of professionals to help with your purchase. They are all just helping each other line their pockets.
Reply from Rocket Property Group. You are entitled to your opinion SFV, and it is easy to disparage others whilst hiding behind the anonymity that a forum like this affords you. We encourage all our investors to obtain full valuations for any proposed purchase – if we did offer overpriced properties as suggested, we would never be able to sell anything, as everything would fall over on valuation. We do obtain a number of rental appraisals from professional property managers in the area and rely on their expertise. The suggestion that we receive kick backs from professional service providers is an assumption that is entirely wrong – again you are fortunate that you are able to say whatever you like without revealing your identity. I am sorry that Annabelle is unhappy with her purchase and is not able to see the long term potential of her investment. She seems to have cut and pasted this post to a number of different forums, and I have responded to her post in detail elsewhere.Tony FlemingParticipant@the-dark-knightJoin Date: 2008Post Count: 396
Not relevant to the above posting never used rocket group but thanks Ian for your inspiring YIP magazine in 2010 from memory. I was a low income earner at the time and from all the postings and articles from magazines/forums I always remember your story. 10+ properties later cheers for the motivation and inspiring story
I wouldn’t go near these guys. They tried to sell me an off the property apartment in Brisbane a couple of years ago. It’s now worth a good 100k less than what I would have paid for it. Look guys they are a business and they are there to make money. When you buy from them you are paying Ian you’re paying their marketing team you’re paying their consultant their developer etc. etc. and trust me it adds up. On top of that they try and flog their own accountants, lawyers etc. at a more inflated cost too. At the end of the day you will more than likely loose money and in my case it would have been a six figure plus sum. Don’t go with them there are much much better alternatives out there.
Uhi-78. Your post is inaccurate and misleading in many respects. It is impossible to discern whether you are actually a genuine person, or just a mischief maker with your own agenda. If you are genuine you will be able to tell the forum readers exactly which property, how much, what it is worth now etc. Let’s get really specific about the property details. Regarding commissions, Rocket Property Group is not a charity. I am a fully licensed real estate agent and receive the real estate commission when one of our investors purchases a property through us. Just as LJHooker does when someone buys a property from their listings. All our investors are fully aware of this. However selling property is not our main focus. There are thousands of properties out there, and you can easily buy one over the internet. You don’t need us for that. Our main focus is to understand why our investors are investing in property, show them how property can help them achieve their financial goals and educate them to the point where they can make a confident decision Only then do we start recommending areas to invest in and individual properties that will meet their criteria and preferences .Your assertions that Rocket ‘flogs their own accountants, lawyers etc at an inflated cost’ is rubbish. If investors ask us for a recommendation then we are able to give them some options. There is absolutely no commercial arrangement in place. Our recommendations are based on past experience and value. They won’t always be the cheapest. If you just want the cheapest deal in Australia then you can find it by yourself, we will not recommend anyone who we feel can only compete on price and nothing else. We don’t even have our own accountants, so again your comments are inaccurate and misleading. When you are in business you are in the public domain and it is inevitable that from time to time you are going to get targeted. I have been investing now for over 15 years now and have a very large and well documented portfolio. The properties that I purchase for my own portfolio are the same properties that we recommend to our investors. I have won multiple awards over the years based on nominations from happy Rocket investors. As always, I welcome anyone to contact me personally if you have an issue with Rocket or any of the free services that we offer. My direct mobile number is 0432 663300.JerryParticipant@jerry_oJoin Date: 2013Post Count: 46
I’m not going to even bother reading all of that Ian. My post wasn’t an attack merely an observation based on my dealings with your company.Stop getting so worked up mate. And if I had gone with what your company had told me would ” meet my criteria and preferences ” I would now be quite a bit out of pocket with an property worth no where near what I paid for it.
The original poster asked has anyone had any dealings with rocket and my answer to that is yes. They tried to get me to buy a property and that property is now worth a lot less than what i would have paid for it. A lot. Bullet dodged, question answered.
- This reply was modified 3 years, 5 months ago by Uhi-78.
Your inability to give any details whatsoever about this mysterious Brisbane apartment that I allegedly tried to sell you would suggest that you are not genuine, and the above post where you relate your experience with Rocket Property Group is largely, or entirely, made up. It is a great pity that completely fabricated stories can be posted on forums such as this. I suggest that if you are planning to continue to participate in forums then you stick to the truth, and be prepared to back up any allegations that you make with facts.
There is no “inability” on my behalf merely my “decision” to not disclose details, I really don’t feel the need to.I didn’t come on here to start an argument and if after reading Ian’s replys you still feel like he is someone you want to do business with than that is entirely up to you.
The original question was ” has anyone had dealings with rocket” and my answer is yes,I chose to not buy an OTP apartment from them which is now worth considerably less. Quiet simple really.
Don’t know why you require anymore detail than that, it’s not exactly “rocket science” :)Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,018
As a licensed Real Estate agent Ian I assume you also recommend second hand properties to your investor clients?
Can you confirm this.
Yours in Finance
Hi Richard, thanks for the question, and my apologies for a late reply. I do not recommend second hand properties. The reason is simple. I have never purchased a second hand property myself. The great thing about property is that there are many ways that you can use it to create wealth. Buying established properties is a strategy that has worked for many investors, and if anyone feels it is right for them I advise them to find a mentor who has already been successful using this strategy.
I have been investing now for over 15 years and still find that buying new works best for me. It allows me to get premium tenants and maximize my tax deductions. I can more accurately predict my cash flows because there is little to no unscheduled maintenance in the early years of ownership. The strategy allows me to profile my target tenant first, then nominate my preferred builder to build the right property in the right area with the right level of specification to attract my target tenant.
Many beginner investors assume that a cheaper older style property is also cheaper to hold, but in my experience the opposite is true, and that is why I always stick to new properties. Thanks for the question.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,018
Like you I have been investing in Brisbane for over 20 years and have built a property portfolio worth in excess of $30M. Thankfully i own all of our properties outright without any debt.
Personally other than retaining a property which we have developed I have never purchased a new property.
I disagree with you comments in regards to premium tenants and maximizing tax deductions.
Where the property is 6 months old there is no difference in either and the property is still covered by the Builder warranty.
In fact doing it this way you can often get better value for money and in many cases the same property can be cheaper.
We certainly show our clients how to achieve this.
Buying a townhouse in Wynnum West for $154,000 in 1991 was certainly premium priced at the time as we bought a complete block of units in Wynnum itself some 5 years later and paid less than $72K per block for a 6 pack.
Yours in Finance
I absolutely agree with your comment that I paid a premium price for my Wynnum townhouse. That is because it was a premium property. I could have certainly picked up an old ‘clunker’ for less, but that is not my strategy. Just because you pay a premium price doesn’t mean that you are not getting good value. All my purchases (and recommendations) need to be supported by bank valuations. You are a developer looking to add instant value. I am time poor, have no experience in renovating, and no inclination to do so. Your strategy would not appeal to me, even though it obviously suits your circumstances.
I also agree with your comment that from a tax benefit perspective there is little difference between a brand new property and a 6 month old property. But for me that is not the point. The most important thing for peace of mind is to choose someone that I absolutely trust. A builder who is passionate about what they do, has a great reputation, offers great value, has good processes, and can be relied upon to do the right thing if something unanticipated happens. There are only a handful of builders that I have come across that I would trust and recommend to others.
As for the builder warranty, I have heard from quite a few investors who have unfortunately gone with a ‘dodgy’ builder and have had to fall back on it. From what they tell me it appears to be a deeply flawed safety net that is bureaucratic, slow and at times obstinately unhelpful. I certainly would not want to put myself in the position that I would have to rely on a warranty to get myself out of a bad situation. Much better to find a good builder to start with.
Congratulations on your success. As I constantly point out, there are many strategies that you can use to create wealth through property. My strategy works brilliantly for me, and your strategy works for you. There is no right or wrong. We may agree to disagree on some minor points, but that is life!
It is now 4 years since buying a house & land package at Gracemere which was marketed by Rocket Property Group. We have gone from bad to worse!!! Our debt is $430K ($68K secured on our PPR) – can’t even sell it for $330K. Rent was supposed to be $430 – never got this amount. Eventually rented it for $365/wk (this was very lucky), now the tenant has left & we are in major trouble – can’t even rent it at $290/wk due to MASSIVE OVER SUPPLY. If you are any sort of an “expert” that you claim to be you would have known this would happen. This has almost ruined us financially. There is NO CHANCE OF RETIRING in the near future as we now have a massive debt to pay with NOTHING TO SHOW FOR IT. I was trying to get ahead financially, but this “investment” has set us back well over 10 years. I am totally disgusted with Rocket Property Group. Are you going to buy this DUD back from me?????
I am sorry that your investment property in Gracemere has not performed as we had expected in the past four years. I personally own 23 properties in Central and North Queensland, including 14 in Gladstone which has been equally affected, if not more so, so I share your disappointment. All our recommendations are made only after considerable in-house research, and we also rely heavily on the opinions and research of leading property commentators such as Terry Ryder, BIS Shrapnel and Matusik. We make this research available to all our investors when we make a recommendation.
Around the time that you purchased, PRD Analyst Aaron Maskrey reported that Rockhampton was ‘due a sizeable portion of growth’ ( Regional Hotspots, Your Investment Property Magazine, Dec ’12, page 20). Most property commentators and researchers were echoing the same sentiments at the time, backed up by their own independent research.
I believe that Rockhampton, notwithstanding recent performance, has long term potential, and I would like to make a few comments that you may find helpful to put this investment into perspective.
1. The original rental appraisals were given by a number of local real estate professionals who based the expected rents on results that they were achieving at the time that they did the appraisal. They were not prepared by us.
2. Whilst general economic conditions have meant that Gracemere (along with many other areas) has not performed as expected over the past four years, these same economic conditions have resulted in the lowest interest rates ever seen in Australia. Some of my properties are cash flowing better now than before, as my interest rates have dropped more than my rents. We are happy to do a revised cash flow for this property if you would like one.
3. In order to de-risk property portfolios we have always strongly advocated investing in geographically diverse locations. Property markets have become less predictable in recent years. Many of our investors who have invested in regional areas have also taken our advice to balance their portfolios with properties in Sydney, Melbourne etc. Although they may hold properties in Central Queensland, they are not over-exposed to regional markets and many are still on track to achieve their financial goals.
4. The revised rental that your property manager is quoting seems quite low. My staff member Lindy’s tenant in Gracemere has only very recently renewed their lease at $360 pw. If you would like help with finding a new property manager then we are happy to give you the details of property managers that other investors recommend.
Annabelle, I can hear your disappointment. Property cycles are not 100% predictable, and it is always frustrating when particular properties do not perform as expected in the short term. However, in the vast majority of cases, patience is rewarded. I was only last week speaking to an investor who bought a couple of ‘duds’ (his words) about 15 years ago in Westmead (Sydney). After years of negative cash flow he finally sold his two units at a loss in 2009. Those two units would now be worth about 3 times what he paid. As property is not entirely predictable I know that we cannot keep everybody completely happy all the time. But what I can do, whether our investors are happy or not, is to give them our full and unreserved support. This has been offered to you before, and I offer it again now. One property and four years in the market is never going to give anyone financial freedom, however it performs. Property has helped many people to financial independence, and I do hope that this experience has not soured your attitude to the point where you no longer have the confidence to invest further, because if this is the case you are probably right in your assertion that you have ‘no chance of retiring’.
If we had not bought this property we would have been completely debt-free by the end of this year!! Because of the dismal performance of this property we are now in debt with a large negative gearing outlay with major stress & uncertainty. With this property in free-fall there is no way we can afford to invest again. We feel completely trapped with no way out. As to the property managers, we are using the ones that Lindy recommenced. If you look online you will see that the average rent is $290-$300. Lindy may be able to renew the same tenant at $360, but if they leave she will be lucky to get $290 (this is my problem now). I believe if Rocket had really done the “research” you surely would have known that Gracemere would soon be vastly oversupplied (as it was even before my build was complete – in 6 months the market was completed flooded with rental properties). As this was my first investment, like an idiot I relied on Lindy’s “expertise” and I did ask her about this beforehand, but was told it was not a concern. I still can not get a tenant. If you really think this is such a great investment you are welcome to buy it from me at cost…NormousParticipant@dixenJoin Date: 2017Post Count: 1
What a lovely way to respond to Anabelle, she trusted your company and is now stuck with a property that is financially crippling her and her partner and all you can reply with is a snide remark about her attitude ? If that’s the response from the top of the tree I’d hate to see how the rest of the company operates.