Anyone Used Momentum Wealth?

I didn't think they did BA work either??
They do property advisory but this is more around the valuation services for feasibility etc

 

It really should depends on what you want to achieve from property investments, what end goal, what number? What is your strategy to invest next, buying units within 10kms, land and house developments, older houses and renovate, upgrading your PPOR with renos every few years, there are so many ways to invest into property?
If say you want to replace your current income, say $100K, assuming 3% net rent (4% gross less 1% outgoings), then you would need paid off around $3.33million in assets ($100K/3%).
So if your finance strategy is to use LVR around 80% you would need to grow your asset base to larger value, so you work backwards then...
How will you purchase the assets under your name, joint names, tenants in common, trusts, etc.. So entity structure is vital for land tax thresholds, asset protection your borrowing and so on?
Does your accountant, broker, lawyer invest directly into IPs too? What makes them good, do they practice what they preach or just derive income?
Brokers are vital in your financial journey, as they can communicate to you it is not just about the lowest IR, rather is the loan flexible and portable for future lending, no collateral....
There are so many issues so knowledge, hence education is the key first!
I have change 3 accountants, 3 brokers, two lawyers, to now have a great team. It really depends whether you will find the right specialists in your team but you must know what you want.
Like any profession whether a doctor we all know when they are good when they eventually help us and can not just help but prevent from future disasters (illnesses)....

 

most people don't realise they provide BA service.

 

As I'm in new home sales for a local builder in Perth, I was at one of our display homes 2 weeks ago and had a MW "expert" coming around asking how much the display home was and how much the rent back % was.

Being nosy and pretending interested I asked about the service and how they operate where he told me his client payed a fee to "engage" their services. I would only guess this would be a standard 5 figure buyers agent fee. He was out looking for a display home for the client around the $500k mark in the Northern Corridor of Perth.

The lease back is for 12 months and will probably extend for a further 6 to maybe 12 months tops. The thing with display homes is that you pay a premium for them due to their finish and then get a 1-2 year rent guarantee at about 7%. Once that's up your left with a property you've payed premium for, in an outer suburb with huge vacancy rates.

In my opinion that is plain lazy, and a dis service to a client who has paid a great deal of money for "professional" advise when they could have taken a leisurely drive on a Sunday and bought a display home direct from the builder.

 

I agree I don't know why you'd pay a BA to find a display home for sale as they are well advertised and the lease back is standard 7% across all of them.

If they had a client who had $500k to spend they could do better with it than a display home.

 

MWI makes very good points and I would add to that: If you want to replace $100K income, and you just want out of your 9 to 5 job i.e. you're not ready to "retire" from property, then less than $3.3 million net may be enough. If you enjoy property development and plan to continue developing property then it can add to your pool of funds, provided you stay in a position where you can fund your property developments.

 

Don't forget that if the bank gets a sniff of it being a display home, they're probably not going to want to lend against it.

 

^^^ why?

Solid first year lease minimum. Tenant guarantees handover condition. Superior finishes.

 

Because display homes are generally overcapitalised compared to the average home in the area. This means it’s going to be more difficult for a bank to recover their money in the event they have to sell the property.