Join Australia's most dynamic and respected property investment community

Anyone had experience with Investco?

Discussion in 'Property Experts' started by Dbaker, 30th Nov, 2015.

  1. Dbaker

    Dbaker New Member

    Joined:
    30th Nov, 2015
    Posts:
    3
    Location:
    NSW
    Hi all
    I'm new to this forum and would much appreciate some thoughts and feedback if anyone has had any experience with Investco? Their website is Home - Investco Strategies and they are based in QLD. My husband and I recently attended a seminar that they put on that our accountants had promoted and have since had some chats with regards to them sourcing investment properties. They don't charge their clients any fees for sourcing or appraising properties we find but just get the commission off the sale. They like to sell off-the-plan to take full advantage of depreciation and less stamp duty. They have recently brought to us an opportunity and it looks ok, although we need more time to look into the details. We would just like to find out if anyone has dealt with them and what your experience has been. Are they trustworthy?

    Many thanks in advance.
     
  2. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,383
    Location:
    Somewhere in the land of Oz
    You've come to the right place!
    First work out how much commission they make from a potential property your looking at, then pass on that amount to the respondent's as a thank you if the advice is helpful
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,104
    Location:
    Melbourne, Nationwide
    They're essentially working for developers to sell properties to the public. Their sales process includes seminars which has some useful information, but it's primary purpose is to motivate people to purchase a property as an investment.

    What's telling is they only sell off the plan properties. Established properties don't form part of their financial plan, despite often making superior investments.

    A buyers agent charges roughly $9k - $12k and they only act on behalf of the purchaser. How much commission do these people make?

    They may be acting ethically, but the statistics of the number of businesses following this business model suggests that you'd end up paying far more than the property is worth and could do better than if you did your own due diligence or engaged a buyers agent to help you.
     
    Esh likes this.
  4. wombat777

    wombat777 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,443
    Location:
    33°41'24.7"S 150°55'34.3"E
    If you do go down this path, make sure you get an independent bank panel valuation for any property you consider buying from them.

    Even if the property price you pay matches the valuation, you are still likely paying a premium for the property.
     
  5. Dbaker

    Dbaker New Member

    Joined:
    30th Nov, 2015
    Posts:
    3
    Location:
    NSW
    Thanks everyone. Yes we are still doing due diligence and bringing to their attention established properties in the same estate for less to get their thoughts. They do welcome if we find established properties for their appraisal. So while their strategy is off-the-plan, they say that they would appraise ones we've found. The commission they get is the standard between 2-3% like real estate agents.
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,573
    Location:
    Sydney or NSW or Australia

    Have they declared that? Many developers pay 5% just for the leads which the main agent converts.
     
  7. Dbaker

    Dbaker New Member

    Joined:
    30th Nov, 2015
    Posts:
    3
    Location:
    NSW
    Yes they told us that in a meeting and I think we have it in a booklet. I think they said it's that fixed rate for the state that the property is in that real estate agents are allowed.
     
  8. CosmicTrevor

    CosmicTrevor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    117
    Location:
    Sydney
    I've made this point a number of times, the problem I have with these organisations is what they aren't showing you. In other words, they aren't showing you the opportunities that don't get them a decent commission. By the way 5% is still more than double what you would expect to pay a plain old REA.

    So what aren't you seeing?
    1) Established homes and apartments
    2) New apartments in smaller developments (generally don't have the marketing budget to pay large commissions).
    3) New apartments in developments that they aren't selling - could be a building next door!
    4) Potentially better apartments in the same development that has been proposed to you - this happens when the developer appoints more than one project marketer.

    So take a look, but be highly sceptical. I've been down this path (not with Investco) and it isn't pretty.
     
    Coota9 and Leo2413 like this.
  9. Esh

    Esh Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    192
    Location:
    Sydney NSW
    Hey @Dbaker !

    All the best for your property journey. Just want to say that I really don't like the idea of going down this path. How do you know they won't skew figures to make it more appealing or not appealing enough (in the case you find a property and they appraise it)

    I don't know your accountants personally but it seems like this is a better return for them. at the end of the day, all the information is available on free sites such as domain and realestate.com.au for sold prices for yourself to see what is fair value and what isn't.
     
    D.T. likes this.
  10. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,812
    Location:
    Sydney
    @Dbaker i highly doubt they have your best interests at heart. I see so many conflict of interests its not funny.

    Personally i would run fast and far. Without looking back.
     
    Coota9 likes this.
  11. fergusdog

    fergusdog New Member

    Joined:
    21st Jan, 2016
    Posts:
    2
    Location:
    Melbourne
    "Run Forest, run"