Anyone used Aspire Property Advisor Network?

Hi! I’m a first time property investor and looking into purchasing my 1st property soon.

I’ve read a lot and understand a lot of the basics but lack the confidence to pull the trigger on a property my own as I’m afraid I might just miss something.

I really want to get this first one right!

I’m thinking of engaging the service of a property advisor. Has anyone used/heard of anything about this Aspire Property Advisor Network (https://www.aspirenetwork.com.au/the-true-cost-of-inaction/)? I can’t find anything online about them apart from their own webpage, posts etc.

Thank you!

 

Why would you use them then?

 

Fair Q.
Was referred to them by my mortgage broker. I’ve already had an hour long initial conversation with one of their property advisors (https://simplepropertyinvestment.com.au/) and he seemed to be quite knowledgeable and trustworthy.

 

What sort of properties are they recommending? How much do you pay them and do they get paid by anyone else?

 

I believe they deal with non-exclusive, off the plan land+package deals Australia wide. They do the all due diligence for the buyer. The advisor shortlists potential matches and presents to client. Apparently the advisor works for the buyer, not the seller. The engagement fee is fixed at $2000.

 

Right so its all new stuff.

So they dont get any marketing fees from the developer? Did you ask them this specifically if they receive any payments from any person or entity other than you or have any financial interests in the developments they are selling to you? Get that in writing first.

what you dont see, and experienced property investors do, is the potential for conflict of interest that exists here. Are they really working for the buyer?

Does 2k sound like its enough to pay the rent and keep the lights on?

 

Following from Trainee's comments, I'd say there are some good kickbacks to the broker for your referral..I'm.often contacted by sales companies to refer my clients to them. One company offered 30k if my clients buy an off the plan property from their stock list. All that does is increase your purchase price and the valuers are usually aware of the kickback and value the property at the price minus that figure.
Some brokers earn more in pushing property to their clients than writing actual loans. It doesn't sit well with me so I've never done it.
If you are keen on properties in a particular area go straight to the developer and you'll save yourself some money.

 

Is all new stuff what you want? Do you believe this is what will allow you to maximise your capital growth for your budget? If not, then maybe it’s not for you.

Personally, I wouldn’t be engaging in their services. Would much prefer to engage a BA who can source me an established property in a growing market chasing CG. Yes they cost more than what you’re being charged but at least you know they are working for you.

 

Ok, so now you can ditch both - the mortgage broker & the property advisor (aka salesman in this case)

 

They charge you $2K and are also paid by the developer or builder, so they are charging you to sell you an investment property.
They also say this:
The ASPIRE Property Advisor Network (ASPIRE) is an industry-leading network of advisors who give tailored, unbiased investment advice to families.
They are not unbiased because they don't have access to every property for sale, they only sell the properties they will get paid commission on, so how is that unbiased?

By the way, don't listen to people posting that you should buy an existing property and pay a buyer's agent. They know nothing about you, that may be good advice and it may be flawed.

 

Well said Moshvier...

Across the board - Developer/Builder commissions need to be removed from the industry asap!

Or at-least paid back to the property buyer.

Ask Aspire directly - do they (or any related entities) receive any other $$$ outside of their $2k. Get them to put any denial in writing.

New homes do have their merits - true, BUT only in a very select set of circumstances.

In some rare circumstances, when developer commissions are removed, House and Land packages can value up on completion...

Depreciation is excellent.

Growth usually compromised (you are part of the supply problem = lack of scarcity).

Yield is subjective.

To make House and Land work - you must control the location and deal numbers very tightly.

 

Question ....is Propi a licensed real estate buyers / selling agent in any states ? Its a bit rich to slur BA's in a broad sense and not be suitably qualified ?

The website says "no cost" then has a disclaimer that says
Legal Disclaimer
*Only if total referral bonus amount offsets $2,500. Subscribed members get hold of 100%, up to $2,500, of their referral bonus from providers selected via Propi.com.au and 50% for every dollar exceeding this amount. Propi.com.au makes no warranties and guarantees in relation to any referral bonuses.

The way I read it they receive a referral fee and if its more than $2500 you dont also get charged a $2500 fee. Thats not in itself a concern where disclosure of referral fees is made. But its not quite no cost.

The usual warnings about parties who sell property must be given. DONT rely on their valuation. DONT allow them to facilitate finance. Why you ask ? Many spruikers hide overvalued property through using equity out loans. This way you are borrowing against the property so its within say 80%LVR and doesnt indicate poor value. However you may be buying a $400K value property for $440K as an example. And this funds and acts as a lever to recommend the wrong sort of property deals. Such issues are generally where BA's are expected to maintain exemplary professional standards. That said there are also some developer supported firms that do it well.

I also have a concern for the "out of area" bias that could arise. Seen examples before. A website acts to sell agent listed property that is harder to sell at higher prices based on out of area knowledge being lacking. The REA then is happy to pay a referral fee for the higher priced sale.

 

Dear Anthony Apergis,

Thank you for reaching out and considering the services of ASPIRE Property Advisor Network for your first property investment. I understand the importance of making informed decisions regarding property investment, especially for first-time investors like yourself.

Regarding your question about ASPIRE Property Advisor Network, I would like to provide some information and address the concerns raised in the discussion.

At ASPIRE Property Advisor Network, we have implemented a framework to address potential conflicts of interest in the industry. Our primary focus is to ensure that our Property Investment Advisors do not have any commercial relationships with vendors or developers. This framework is designed to promote transparency and unbiased advice for our clients.

During the initial meeting with our independent accredited advisors, they provide a comprehensive PROPERTY SERVICE GUIDE (PSG). This guide contains detailed information about the advisor's relationships, how they are remunerated, and the services they provide. It aims to provide investors with a clear understanding of the advisor's role and any potential conflicts that may arise.

It's important to note that ASPIRE Property Advisor Network does not directly deal with clients. Instead, we serve as a compliance, tracking and delivery platform that ensures transparency and removes conflicts of interest. Our independent accredited advisors are not employed or related to ASPIRE. We provide the necessary systems and resources to empower these advisors to deliver property investment advice transparently and without conflicts.

As part of our compliance platform, we generate a disclosure statement for clients outlining any fees their advisor receives. If there are any referral fees involved, they are also included in the disclosure statement. Our PSG comprehensively explains these processes and ensures clients have full visibility going into the advisory relationship.

Furthermore, we are proud to be members of the Property Investment Professionals of Australia (PIPA) industry association. We actively follow their code of conduct and work towards bringing regulation and the best interest duty of care to consumers. Our commitment to professionalism and ethical practices is at the core of everything we do.

Over a decade, ASPIRE has assisted thousands of individuals in their property investment journey. We aim to bring structure and compliance to this space, ensuring investors receive expert advice aligning with their specific investment goals and objectives.

If you have any further questions or if there's anything else we can assist you with, please don't hesitate to contact us. We look forward to the opportunity to serve you and provide expert advice tailored to your needs through our network of QPIA ® Qualified Property Investment Advisors.

Best regards,

Richard Crabb
CEO, ASPIRE Property Advisor Network