All Topics / Help Needed! / Reventon Investments???

Viewing 13 posts - 21 through 33 (of 33 total)
  • Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Sorry Jasmine that statement is clearly not correct.

    There are more benefits for the client if they invest in new property or off the plan

    If the property is 1 month old then the difference in Tax deductible claims i.e Depreciation benefits / Capital allowance are almost identical.

    The Stamp Duty saving on the Transfer only applies to properties in Victoria.

    In every other State it is the same.

    Course you have to offset the potential Stamp Duty saving to the possibility the property is overpriced due to the commissions being paid to 3rd parties.

    The Stamp duty is not a Tax deductible claim so relatively little difference over time.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of CatnkezzCatnkezz
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    @catnkezz
    Join Date: 2014
    Post Count: 3

    Hi again, met with a Reventon rep and was impresses by the properties they suggested. One was new off the plan but work has already started, a house and land package that will be completely turn key finished, all paths and landscaping with curtains. The other was interstate but we weren’t interested in that at all. We will be using our own legal representation and finance broker, Reventon were happy for us to use them. My only concern is who sets the price for the properties? It seems slightly over priced(20g’s) but build company are above the norm with quality. Is it wrong to pay a little extra if we are to keep it for the long term? Not sure. Having a look at what builder has built and will decide on the quality then. This will be our second time investing so still very nervous about sighning bottom line. See how we go! Cheers Catnkezz.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    I wound never be paying more than the registered valuation for any property irrespective ef whether I was keeping the property for 1 year or 10.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of Nigel KibelNigel Kibel
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    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    I could not agree with Richard more

    Most of these companies are making huge commissions they are often pushing properties that are not selling in the general market at and that’s why developers often offer marketing companies large commissions. The purpose to invest is to make money why would you buy something that is over priced. Richard buys things in Australia for clients and I represent people who buy in the United States. Try dealing with people that have your best interests at heart rather than marketing companies that are just looking to there next commission

    Nigel Kibel | Property Know How
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    Profile photo of IsabelIsabel
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    @isabel26
    Join Date: 2014
    Post Count: 15

    Hi everyone, we too had a call from Reventon, again they said buy new house and land over near Geelong. It all seemed too easy, the one stop shop so to speak. The advisor kept saying that they invest in everything from established properties, gold, cash but did push new house and land package. We did agree to speak with there money man and were asked to prepare any questions we have, so next week we are meeting, NO MONEY will be handed over just yet. Rep seemed honest enough we will see what happens next week!
    Cheers Catnkezz

    This company sounds similar to an experience I had. Too easy and too good to be true. Please do not sign anything. The only person who has the best intentions for your money is you. They WILL be making money off you at your expense. Get educated and find your own investment

    I was told they could get me a positive property no problems but first we want to fix any leaks you have in your income and that is by saving tax etc we were guided towards an off the plan place in melbourne. It appealed to me as we were nervous doing this our first time. This is what they sold us with..they had all the right people and made it all simple for us.

    though it is not the exact company we were illustrated this too “There are more benefits for the client if they invest in new property or off the plan. These benefits include more tax deductions, depreciation, reduced stamp duty, less fees, less maintenance, increases chances of finding tenants, and increases client confidence. Therefore we don’t recommend secondhand property as there are far more benefits to be had when investing in new property.”

    reduced stamp duty turned out to be 20k off a 410k apartment. We signed the contract before securing finance we were told they would ‘hold our hand every step of the way’ so we trusted what processes they had for us. When we had trouble securing finance with a lender we were locked in to this contract. We are so lucky we scraped by. At first we were told a 95% lend would be fine with our combined high income this was not true, banks saw this as a risky investment and it was under the value we paid for- we paid 410k but is worth 388!. We had no help once we signed the contract we had trouble getting in contact with the company. We ended up having to come up with an extra 80k to fill the gap of what we could borrow. plus the 20k stamp duty. Our apartment sat without tenants for 6 months.. all the other competition against all the other apartments that were off the plan sold it makes sense but never crossed our minds at the time.
    We lost money, sleep, hair and confidence. We have just come out ok now after a HUGE learning lesson. It’s embarrassing our first time purchasing but it would be an even more expensive lesson if we didn’t learn anything and grow from it.

    This is just my personal experience and just thought i would share this incase I can help prevent anyone going through what I did with ‘off the plan’ and these businesses that sell them.

    all the best and if you have any qs about my experience please ask, happy to help :)

    • This reply was modified 7 years, 5 months ago by Profile photo of Isabel Isabel.
    Profile photo of superAndrewsuperAndrew
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    @superandrew
    Join Date: 2014
    Post Count: 188

    There is nothing wrong with new properties.

    These benefits include more tax deductions, depreciation, reduced stamp duty, less fees, less maintenance, increases chances of finding tenants

    Those benefits are all true.

    The problem with these companies is that they charge very high commissions on top of the real value of the property.

    we paid 410k but is worth 388!

    This most likely reflects their commission: $22k.

    Cheers

    Andrew

    superAndrew | Property Analyser and Finder Tool
    https://property-analyser.com.au

    Profile photo of IsabelIsabel
    Participant
    @isabel26
    Join Date: 2014
    Post Count: 15

    yes they do get a commission, we were told it was wholesale price and they get paid a fee from the developer when they sold a certain number of properties. Its not the new houses being the issue its the companies who sell them, I’m sure there are people who possibly benefit from it I don’t know but in my experience it caused a lot of problems and if you are new to investing it could possibly turn into a nightmare.
    because the bank would only lend us a % of the value of the property and not the price we actually paid on top of them only lending an 80% lend (they saw as risky investment) as opposed to a 95% lend which is what the company told us we could easily do..this lead to a huge amount of money we needed to come up with fast. plus all the disorganisation lead to us being well over the settlement period (which cost $120 per day)
    The problem is when they advertise themselves as mentors or that they will be helping you with each step. They are property agents and its important to remember that you should seek your own advice and see them just as that.

    Profile photo of Jasmine ApplefordJasmine Appleford
    Participant
    @jazapp
    Join Date: 2014
    Post Count: 4

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    Jasmine Appleford
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    Profile photo of N@than[email protected]
    Participant
    @n-than
    Join Date: 2010
    Post Count: 241

    Hi Jasmine,

    Do Reventon get paid a commission from the developer for the properties sold?

    Cheers,
    Nathan

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    And if so how much?

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of CatnkezzCatnkezz
    Participant
    @catnkezz
    Join Date: 2014
    Post Count: 3

    Thanks Isabel, everything you were told is exactly what we were told, only difference is that once building is complete and isn’t valued at purchase price, banks won’t loan money and contract is void. Checking that out with solicitor on Monday.
    Cheers Catnkezz.

    Profile photo of PurpleeonePurpleeone
    Participant
    @purpleeone
    Join Date: 2016
    Post Count: 1

    Hi everyone,

    So who has has invested with Reventon?

    We did invest but it fell through due to a marriage breakup, we didnt get to see the end result as it was off the plan.

    I am now lookin to invest again through them and there is new land release in Geelong ArmStrong Creek.
    House and land from 400,000.

    Im gettin very mixed reviews on reventon now and investing in geelong

    Stories please
    Thankyou
    Rebecca

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    1. They will check that your PPOR has sizable equity before wanting your business. This is so the excess equity in your PPOR can make up for an over-valued IP that they want to sell you. Of course, any salesperson might quiz you to see if you have “Deposit and Costs available” – either in Equity or savings. Those with bad intentions want to see EXCESS Equity !!

    That ^^^^^ is a classic and they cross collaterlise your PPOR with the IP and “hide” the val shortfall on the new IP in order to gouge the commissions. Hence the importance of stand alone finance structures.

    Its a form of legalised theft and banks, brokers and property spruikers are all in bed together.

    Not saying Reventon do this as I dont know enough to comment.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
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    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

Viewing 13 posts - 21 through 33 (of 33 total)

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