Attended a 'Barings' Build wealth seminar recently which related to property investing.
We are looking at going ahead with the advice given & purchase our first investment property with the help of Dean Baring.Can anyone advise if they have had or know of anyone that has had any dealings with this company. I am unable to find any information on the internet about Dean.Terrible name, given what happened to Baring’s Bank, wouldn’t inspire me with confidence.
Hi Zanymrie
A few questions off the top of my head that I'd be considering if I were in your shoes.
How are they paid? Are you paying them a fee for service or are they getting paid a kickback from the sale of the property that you're purchasing?
What type of service is actually on offer? Are they helping you locate a property (in which case I'd use a buyers agent)?
Is this something you could do yourself with a bit of research and self education?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Jamie
They will receive payment from the sale of the property which they have located. (display home)
Then they will put together a plan to pay off own home sooner by capitalising the interest on the investment property.
Have you ever heard of Dean Baring?regards Marie
Hi Marie
I haven't heard of him.
Is the price of the property inflated compared to similar properties within the area? What does your accountant say about the proposed financed structure?
I can tell you're being cautious (which is good) – because you wouldn't have stumbled across this forum otherwise. Continue to do your research and don't jump into anything until you're 100% certain.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Is this the guy
Dean Baring
Acquisitions Manager, QueenslandIf so he works for this mob (6th one down)
http://www.jlf.com.au/acquisitions_team.html
who also run
Custodian WealthBuilders http://www.jlf.com.au/property_investment.html
The Freckle
He uses the standard REIT commission which is paid by the builder and land developer. 5% for the first 18k, the 2.5% for everything over.
zanymrie wrote:Then they will put together a plan to pay off own home sooner by capitalising the interest on the investment property.Hi Marie,
The ATO has recently ruled that capitalising interest on the investment property is no longer allowable from a tax deduction perspective.
On this basis you may want to re-think this aspect of the strategy – or certainly speak to your accountant. about the structure.
That rule has been around for a while now.
We tried all those tricks (when you were allowed) but the simple fact is, you need growth in your investment. Once you have made some good growth, then you sell, pay a bit of CGT and then pay the rest off your home loan. Repeat until your home loan is gone.You just need to know where to buy to get that good growth.
band-aid wrote:He uses the standard REIT commission which is paid by the builder and land developer. 5% for the first 18k, the 2.5% for everything over.Interesting comment from a new single post anonymous user- Perhaps Barings might be charging the REIT commissions but I am wondering what an acquistions manager for JLF Group is doing running his own sales seminars? Then I started wondering whose stock is Barings selling and how much commission is actually built into the deal ? WHY would I wonder about that you ask? Well I am aware that some Property Marketing Companies have been acquiring land from Developers in NSW for a number of years now and securing/ Loading/Building in much higher commissions using property option agreements rather than acting as agents and charging the standard real estate industry commission scale. And why would it be any different in Queensland the home of the white shoe brigade. Interesting Isn't it? – but then "Its just one of the things they don't tell you about property Investment."
Interesting Questions Or maybe its the cynic coming out in me after 20 years of witnessing the rort's that have gone on in the Property Investment, Building and Property Development industries.
Cheers
Jamie M wrote:Hi MarieI haven't heard of him.
Is the price of the property inflated compared to similar properties within the area? What does your accountant say about the proposed financed structure?
I can tell you're being cautious (which is good) – because you wouldn't have stumbled across this forum otherwise. Continue to do your research and don't jump into anything until you're 100% certain.Good Advice Jamie
KeyStrategies wrote:band-aid wrote:He uses the standard REIT commission which is paid by the builder and land developer. 5% for the first 18k, the 2.5% for everything over.Interesting comment from a new single post anonymous user- Perhaps Barings might be charging the REIT commissions but I am wondering what an acquistions manager for JLF Group is doing running his own sales seminars? Then I started wondering whose stock is Barings selling and how much commission is actually built into the deal ? WHY would I wonder about that you ask? Well I am aware that some Property Marketing Companies have been acquiring land from Developers in NSW for a number of years now and securing/ Loading/Building in much higher commissions using property option agreements rather than acting as agents and charging the standard real estate industry commission scale. And why would it be any different in Queensland the home of the white shoe brigade. Interesting Isn't it? – but then "Its just one of the things they don't tell you about property Investment."
Interesting Questions Or maybe its the cynic coming out in me after 20 years of witnessing the rort's that have gone on in the Property Investment, Building and Property Development industries.
Cheers
No, just a first time user & have been to one of dean's information nights. As most of central QLD has been.
It seems that you yourself know more than the average person in dealing in property & tax?! Maybe shed some more light on what your commenting about? I'm very interested.
Regards.
band-aid wrote:No, just a first time user & have been to one of dean's information nights. As most of central QLD has been.It seems that you yourself know more than the average person in dealing in property & tax?! Maybe shed some more light on what your commenting about? I'm very interested. Regards.
Since you are interested here is the short answer – without naming names – there are some Property Marketing Companies (PMC'S) doing deals with Developers at different levels via different entities. So a PMC enters into an Option agreement to buy a property from a developer at a Bulk rate price and loads anywhere from $20 to $50K into the price. The "retail price" is then put out to the public and the PMC markets the properties at the retail price also – So while the PMC claims it only receives standard real estate commissions, which is true (at one level) the PMC also pockets the difference between the option price and the retail price, on the sale .
Generally Its done to allow the developers to claim presales in order to obtain finance to fund the project and gives the PMC a bigger chunk of commission while they appear to be charging standard real estate fees.
It seems to me that its just a smoke and mirrors illusion for the public – Is it Legal ? I suppose so – Is it Ethical or Moral well I suppose that depends on the level of Ethics and Morals of the people behind the PMC's – what more can I say – people do interesting things to make money.
Would you buy a property knowing that there was actually $30,000 to $50,000 commission built into the deal for the Advisor ?
http://www.hotspotting.com.au/article/2332-investors-being-robbed-blind-by-advisers-Cheers
Anybody heard of Commercial Properties Investments Pty Ltd?
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