Are investment property companies worth it?

Hi All,

I have read one thread about Empower wealth and wanted to ask the community if they have any updated information and also about any other firms such as Metropole (whom Michael Yardney promotes), propertyology, performance property etc.

Any investments with them, meetings, thoughts and experiences?

I am of the opinion that they are knowledgable and would be worthwhile having on your team however is it value for money as I am sure they all charge a substantial amount.

- Have they been able to negotiate better deals
- I'm sure they pick good stock but how difficult is that to do?
- Where to buy would be the best information in my opinion
- Are their fees tax deductible?
- What is included in their fees and can you pick and choose what they help you with or is it full service only?
- If they have a number of clients would they be buying in one area (growth for instance) for all of them and if there is only a scarce amount of investment grade properties do they tell you to wait or push inferior properties?
- Isn't there a conflict of interest if their fee is a % of property price as there is then no incentive to get a cheaper price on the property (negotiating hard)

I am quite motivated to do a lot of the work myself and research but wondering where the tipping point is in value as I would look to invest interstate.

Just a few major questions but any info and discussion welcome.

 

I have a client using empower now as a buyers agent and he seems happy.

Fees are a capital expense and not deductible but could be used to reduce cgt when sold.

 

Great, thanks for the feedback especially regarding the tax

 

I can’t answer whether it’s worth it or not because that’s a personal speculation, but they do allow you to have an ownership of property without the full cost of purchase. It’s just one of many different ways of doing things

 

They can be for a few reasons.

1. Can issue shares. This can help with strategic tax planning such as SMSF. Some people need to get under the $1.6 million limit and a share of a property could do that.
2. It allows potential partnerships if you want to develop with someone else.
3. It provides limited liability but possibly at a greater cost. (ie. higher loans)

 

Sorry I mean a buyers agent/advocates that source property, advise what to buy, etc might have to change my terminology

 

Empower Wealth is a fixed fee model BA rather than % of purchase price.

 

Personal choice, and if you are time poor not willing to become active property investor it is better to start and use someone rather than never to start......IMHO!