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.
Yours in Finance
CatnkezzParticipant@catnkezzJoin Date: 2014Post Count: 3
- This reply was modified 7 years, 5 months ago by Richard Taylor.
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.
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.
Yours in FinanceNigel KibelParticipant@nigel-kibelJoin Date: 2005Post 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 commissionIsabelParticipant@isabel26Join Date: 2014Post 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!
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 :)
superAndrewParticipant@superandrewJoin Date: 2014Post Count: 188
- This reply was modified 7 years, 5 months ago by Isabel.
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.
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auIsabelParticipant@isabel26Join Date: 2014Post 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.Jasmine ApplefordParticipant@jazappJoin Date: 2014Post Count: 4[email protected]Participant@n-thanJoin Date: 2010Post Count: 241
Do Reventon get paid a commission from the developer for the properties sold?
NathanCatnkezzParticipant@catnkezzJoin Date: 2014Post 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.PurpleeoneParticipant@purpleeoneJoin Date: 2016Post Count: 1
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
RebeccaColin RiceParticipant@fmsJoin Date: 2011Post 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.