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Crowd funding deposit

Discussion in 'Property Finance' started by No Probs, 19th Jun, 2015.

  1. No Probs

    No Probs Well-Known Member

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    Hi everyone,

    After watching a segment on 7 News last night, I thought I'd start a thread on Caitlin Argyle, a 17 year old school student from the Gold Coast, She's trying to raise money to buy an investment property by offering prepaid holiday accommodation.

    She requires $48,000 to cover the deposit and closing costs.

    If Caitlin manages to raise the required funds, she plans to provide one week holiday accommodation to families with children suffering illness for every 10 weeks that her property is rented out.

    Interesting way to go about funding that initial deposit, I think Caitlin will do well.

    Did anyone else watch this segment? What are you thoughts?

    Dillon.
     
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  2. Azazel

    Azazel Well-Known Member

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    I didn't see it. A bit rich asking for money for an investment property isn't it? Maybe for her own place.
     
  3. Dan Donoghue

    Dan Donoghue Well-Known Member

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    Maybe I heard it wrong but my impression from the piece was that if Caitlin manages to raise the required funds, she plans to provide one week holiday accommodation to families with children suffering illness for every 10 weeks that her property is rented out.

    This is ON TOP OF

    1 week's accommodation to people who crowd fund her in return for their money (Basically paying up front for a holiday).

    All well and good except she is taking the money up front and spending it on her deposit. She is taking 70 investments, that means that for the first 77 weeks (70 deposit holders plus 7 disabled kid families) of owning her "investment" apartment she will not be drawing an income from it. How does she plan to pay the mortgage? What protection is in place for people who donate and are to receive a holiday if she quickly realises she can't afford it and has to sell?.

    Chan 7 were commenting that it could be something we see more of, I think not personally. Good luck to her, I hope it works and I think giving back to the community with free holiday rental for disabled kid families is wonderful and definitely more mature than someone her age would usually even think off but I instantly see possible issues.
     
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  4. Kael

    Kael Well-Known Member

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    I never thought of it that way... Interesting way to look at it.
     
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  5. Dan Donoghue

    Dan Donoghue Well-Known Member

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    I could have gotten my wires crossed but my understanding was that though :)
     
  6. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I think its great a 17 yr old girl is thinking about owning her own place. I personally believe the way she's attempting to go about it is not something I find impressive or practical. If she can pull it off then good for her, well done. Just my opinion.
     
  7. Big Will

    Big Will Well-Known Member

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    I think technically the 70 deposits wouldn't count as it being 'rented' but rather occupied.
     
  8. Kael

    Kael Well-Known Member

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    Either way she'd still have to pay the mortgage, so I agree with Dan's pov.
     
  9. Big Will

    Big Will Well-Known Member

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    Didn't say I didn't agree with it ;) Yes she would still have a mortgage but it wouldn't be 70 weeks prepaid rent.
     
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  10. Dan Donoghue

    Dan Donoghue Well-Known Member

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    here is some more info on it: http://www.news.com.au/finance/real...he-48000-deposit/story-fndban6l-1227402303389 and here is the link to the funding site: https://www.indiegogo.com/projects/book-a-holiday-and-help-me-provide-accommodation#/story

    Looks like her folks are going to guarantee it.

    This was also posted by her Dad on the FB page https://www.facebook.com/news.com.au/posts/1091731064187599:

    Re the financing the details are on the page re the sums but in summary the amount being raised will cover the deposit and first years costs.

    So it would seem that the amount she is seeking covers the first years mortgage also. I hope this works out for her and if it does, I hope she inspires more younguns to jump in early. For some reason I am still sceptical though!!!
     
  11. Kael

    Kael Well-Known Member

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    Good point, sorry, I must've gotten confused xD
     
  12. Vacant

    Vacant Well-Known Member

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    Would it be possible to get it over the line without the guarantee? Is crowd funded money a 'gift?' How would the banks look at it, it's not really genuine savings.

    Nice concept but I too am skeptical. Good luck to her.
     
  13. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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  14. ej89

    ej89 Well-Known Member

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    She got an 80k family pledge from her parents which saved her 80k...she used that 80k for her next deposit.. She got 50k from her grandparents as well as getting money from her parents every month... How does someone on 50k a year save 100k within 2 years of working while flying overseas at the same time...

    She's done good saving but I wonder who paid for her holidays :). Haha
     
  15. Arashi87

    Arashi87 Well-Known Member

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    Doesnt matter where the money comes from i guess , its the age and their portfolio matters :D:D:D and the mindset!
     
  16. ej89

    ej89 Well-Known Member

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    It matters when they stand there and say they haven't been spoon fed...
     
  17. Dan Donoghue

    Dan Donoghue Well-Known Member

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    I saw that one too, What I don't understand is how in gods name did she secure enough from the bank to buy these properties, She is 24 years old and the bank have lent her 2 million bucks over the course of only 3 years.

    Heres me on good dual incomes paying $1200 extra a month on my PPOR worth 750 (owe 490) and the banks offer me a lowly $360K for an investment. Whilst I know shopping around will yield better options for me personally, I don't understand how financial institutes could vary so far.

    Also major concerns putting these two quotes side by side:

    "though she did go to university she never graduated and has now dropped out"

    "Now Miss Brennan has launched her own business to help others do what she’s done, offering everything from financial planning to accounting and mortgages"

    Don't you need to be qualified and certified with current credentials to offer Financial Planning advice?
     
  18. ej89

    ej89 Well-Known Member

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    It's probably cause she lives at home and has no expenses whatsoever. I know having a PPOR impacts you massively
     
  19. Dan Donoghue

    Dan Donoghue Well-Known Member

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    Yeah, this is a problem for me, my folks moved up to Hervey Bay, they claim the move was so I couldn't keep moving back home any more ;)
     
  20. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    I told my kids that their mother and I were moving into a 1brm studio with no room for them, for the same reason :p
     
    Last edited: 24th Jun, 2015
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