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Dream Design Do

Discussion in 'Property Experts' started by larrylarry, 26th Aug, 2015.

  1. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    What you're missing is the fact that you're using equity from an IP and you'll very likely be a) very poorly structured financially and b) have no idea about the actual end valuation of the property due to any shortfall in valuation being paid for out of equity.

    The biggest issue in these scenarios is you end up paying WAY too much for the property (for eg, pay $470k for a property that's only worth $400k) that results in years of waiting for growth before you break even. Add to that, you've also got your other IP tied up in the deal which further restricts you if you ever wanted to refinance.

    It can get very messy. If it sounds to good to be true it always is.
     
  2. silverman47

    silverman47 Member

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    Drawing a LOC from an existing IP will attract an interest payment. Under this scenario and based on the properties observed on their FB page, these properties would be significantly negatively geared. Claims that they are neutrally/positively geared would be based on a 20%+ cash deposit. I suggest you prepare your own cashflow sheet.
     
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  3. silverman47

    silverman47 Member

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    Correct Jess. Their FB page contains a complaint whereby a deal fell through as a result of a failed bank valuation. The customer requested a full return of their DDP payment but DDP refused and only offered a partial payment. With any investment, a failed bank valuation should be cause for alarm. As should their reluctance to repay the full fee.
     
  4. TMNT

    TMNT Well-Known Member

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    me personally, when a company signs up to post, unless there is a second side to the story or set the story straight ,or always , it always makes them look bad
     
    Last edited by a moderator: 6th Feb, 2017
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  5. silverman47

    silverman47 Member

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    How do you suggest they respond? Or do you suggest they just accept having their brand trashed on an anonymous forum? Businesses put in a lot of money into building brands. I believe it is within their rights to protect it. if they have acted illegally, this is a different case.
     
  6. BeefEater

    BeefEater Active Member

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    Sydney & Country NSW
    Got this email the other day. They're now offering $9k kickback for referral of a new client.

    Zaki Email.png
     
  7. melbournian

    melbournian Well-Known Member

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    Just counter the arguments with facts. For e.g. if the individual was told against viewing the property, Just say no it is not company policy period and an incorrect statement. (clients are never advised to do this)

    Rather than having a one liner saying hey - we are happy to settle the matter. A lot of businesses (much larger than buyers agency from restaurants, corporates. building companies etc) get bad reviews all the time. Also, there should be some level of warranty on services provided based on the specification. Having accurate and correct representations (whether verbal or written) are important as all individuals consume time and dollars in property purchases.
     
  8. silverman47

    silverman47 Member

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    Any "facts" would still remain unqualified as this is an anonymous fourm. And if the company was to respond, they would have to sign up which is against TMNT's comment. This is the big problem with anonymous forums and social media in general. I would also consider it to be unprofessional for a company to air the details of a customer issue on a public forum.
     
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  9. Lian

    Lian New Member

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    16th Jan, 2017
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    Hi

    The first we heard of these concerns was in this public forum. As a team we were disappointed about this since we have had positive testimonials from Sonya, these are available in the public domain, namely YouTube, as seen on the DDP channel.

    We have not been contacted by Sonya prior to this post in regards to these concerns, nor have we been given a fair opportunity to resolve them.

    We had made repeated attempts to contact Sonya in order to fully understand the situation.
    This week we finally got through to Sonya and are now awaiting correspondence from her with a more detailed outline of the issue at hand in order to resolve it swiftly & amicably for her.

    We encourage fellow investors to note & view this independently. DDP was founded over 5 years ago and has to date helped clients purchase over 1000 properties. Understandably, the majority of our clients would keep their personal finances private, yet we have received over 100 positive testimonials in the past 12 months that can be found online on Facebook, Google, Youtube and the DDP Website.

    We eagerly anticipate Sonya's correspondence, should resolving the issue at hand be her first and foremost priority.

    Sincerely ,
    Lian.
     
  10. melbournian

    melbournian Well-Known Member

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    Well Airbnb, uber eats, eBay and many share economy use reviews to get accurate feedback. They have are millions of users and generate millions in income and millions of people use them to make their decision to use services or not. Nothing wrong to sign up so many other buyers agents do it but sign up officially with name title. Rather than signing up with multiple usernames but from the Same ip and get called out by the moderator

    U don't have to air personal comments just stick to company policy or standards. What is fact vs fiction is very straight up. Was there any comments or recommendations to not view any Property prior to purchase? If a company is as good as it says it is there should be no issue handling a few complaints from disgruntled customers
     
  11. silverman47

    silverman47 Member

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    I agree with the comment re: "recommendation to not view the property". Was this a verbal comment or was it formally documented? If it was the former, it could be he said vs She said? It could get very messy and a bad look for the company online. There is an old saying that relates to journalists, "never wrestle with a pig in the mud. You will both end up with crap all over you, the difference is, the pig loves it" (particularly when it is from an anonymous site).
     
  12. melbournian

    melbournian Well-Known Member

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    I personally flew up to have a look at Logan area and determined it wasn't an area to buy in. The demographics were not good and were of lower income percentile which doesn't help if u are looking at prices to grow. Properties in disrepair high insurance costs due to risk of flood etc, news of more housing commissions, jobs wise figures were just so so. I saw lots of crims in the streets. Auctions I went were like dead or basically no action. Logan isn't like a mount druitt as it doesn't have the infra population growth higher incomes u see from Sydney and Melbourne. This was one year ago and I have since bought elsewhere
     
    Last edited by a moderator: 23rd Jun, 2017
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  13. StockholmSyndrome

    StockholmSyndrome New Member

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    Thanks Melbournian. These are great insights.
     
  14. Simon Hampel

    Simon Hampel Founder Staff Member

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    Actually, that is exactly what they should do - if someone is expressing dissatisfaction with a company on social media they are either: A) being malicious and their assertions (if false or misleading) should be challenged by the company, or B) expressing frustration that their genuine attempts to resolve the situation have gone unanswered or unsatisfied, in which case the company should be engaging to try and rectify that.

    If someone has posted their story on social media, it is already in public - the company should be able to respond to those matters already made public or if other relevant information was omitted (but is private in nature), then they can at least discuss those issues in general terms to explain their side of the story. At worst they can offer a means to engage with someone directly at the company to try and resolve it in private.

    In this particular case, the issue I had was that the first two people who signed up did not identify themselves as being representatives of the company and at least one of them made threatening posts towards our members. That is NOT how to engage on social media. Company representatives must be open about their affiliation - otherwise it appears to be astro-turfing, and joining a forum to threaten defamation is going to achieve exactly the opposite of what they are seeking to do (silence the critics).

    FWIW, I have now deleted those earlier posts - they added nothing to the discussion and only served to discredit the company they were trying to support.

    I don't have a problem with Lian's posts other than he should have openly declared his position with the company (it was directly implied from his posts - just not explicitly stated).

    Of course, as administrator, I do get to see full details of users when they register and can see when they're using a company email address - but other users don't have that benefit, so it should be made explicit - even just a "Hi, I'm Lian from DDP" at the start of the first post would have done it.

    But this is all moot now that Zaki has posted anyway - this is exactly what I encourage companies to do when discussed on the forums - well done Zaki.

    Hopefully we can keep this thread on track now and I hope all parties can come to an agreement or arrangement and move on.
     
    Last edited: 24th Jan, 2017
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  15. Samm90985

    Samm90985 New Member

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    Bondi

    I had unexpected family issues, my partner lost his job and contacted DDP for a refund. They didn't care and didn't pay up.

    Unfortunately we had to sell our property to catchup to your finances due to hardship and Zaki and his team didn't care.

    I would not recommend their services to anyone.


     
    Last edited by a moderator: 29th Mar, 2017
  16. Mr Dabolina

    Mr Dabolina Well-Known Member

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    NSW
    I think you summed it up well...(my experience was also not very positive although I was experienced enough to not accept anything less than a good deal) - this was in the early years of ddp) but as you pointed out as the business grew and more "grren" investors jumped on-board, it became less about quality service and more about making the numbers i.e. sales!
     
  17. Zaki Ameer

    Zaki Ameer Founder - DDP - Dream Design Property Business Member

    Joined:
    22nd Jan, 2017
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    Location:
    Sydney
    Dear Samm90985;

    I have sent you a private message so you may meet me directly to resolve your concern.

    As mentioned in the message, the DDP consulting services are under an agreement in which terms and conditions are listed on. We of course vary terms depending on the clients situation and circumstances.

    For the public record that can also be given under oath, we have refunded $1.48 Million Dollars to date of our consulting fees back to our clients for various reasons which may result in not being able to obtain finance for a property, financial hardhsip on a case by case basis.

    Kind Regards,
    Zaki Ameer
    Founder - Dream Design Property
     
  18. gach2

    gach2 Well-Known Member

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    sydney
    @Sonyad
    I have no connection with DDP or support buyers agents all

    But from what i hear your complaining that the property he bought you is a dud because it hasn't grown to your expectations. I dont think its entirely DDP's fault. They cannot guarantee growth as its base on the market. Also remember the valuation you had done was not because you sold it. (I wouldnt be suprised if each house is worth atleast 300k if you put it on the market. You seem pissed that DDP exaggerated what was going to happen and you bought it. There in sales and thats there job (REA will also do this to u).

    Yes your right if you had bought in sydney you prob would have been better off. I dont know your situation (what you could afford etc) but in mid 2015, 550k would have bought bought you a house in a suburb with similar/slightly better socio economy. You prob would have had lot less yield though which again may have limited your buying power (again i dont know your financial situation). Also back then a lot of this forum was stating that Sydney is bound to doom and why invest in Sydney (and also encouraging cash out in Sydney and buy multiple in Logan).

    Moving forward - i think you have a great portfolio (its actually quiet similar to mine - except i never engaged a buyers agent). Im sure your Lemeuh property is doing well. Your Logan properties have probably done a lot better than you think. Had a quick look (yea the houses arent exactly desirable but they do the job for the area) and from what i see you have 1488m2 of land combined which is 12m2 short of logans rules for subdividing into 3 blocks (you would have a good chance of getting it through). If you were handy could probably get it subdivided shift the houses into right place, raise build and under and have the granny flat approved and sell the vacant lot (requires a lot of effort which you may not want to get involved in)

    Either way good luck
     
  19. ps9589

    ps9589 Member

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    20th Mar, 2017
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    Location:
    NSW
    Hi Everyone, I have had the most stressful and negative experience with DDP. My honest account of my experience is as below:

    I signed up with DDP in 2016 paying a fee of AUD 13,900 for a purchase of a house in the range of AUD 300,000-400,000. As this is well over the industry benchmark, I was brought to believe that DDP’s service would be exceptional and would make the buying experience stress free. However my experience with DDP has been extremely stressful and is provided below:

    1) Initial Sales Pitch: I was led to believe that DDP would be able to source positive cash flow properties in growth areas at prices which were well below market rates, thus making up for the high fees DDP were charging. My initial remit to DDP via an email dated 6/28/2016 (even before signing the contract), with Subject Line “Initial Criteria for property selection - to be ratified as feasible by DDP” was

    "The property

    1) should be a positive cashflow property (before applying tax deductions) Should have a high rental yield and I am open to dual residency houses.

    2) should have a large land area

    3) Total cost of acquisition including stamp duty and any fees, charges and services requires should be under AUD 400000 - Should be the right property for the area for attracting a family as tenants.

    4) should be close to (< 1km) from transport (preferable the train station) and supermarkets and schools

    5) Should be bought under value

    6) Should be checked thoroughly for any long term issues in terms of legal or structural problems.(also flood, fire areas, cyclone areas should be avoided)

    7) Should be in an area with high expected growth and low vacancy rates."

    DDP's response via Email on the same date was:

    "Yes by all means, I have confirmed with our Property team that we can find something that will tick all these boxes.

    Just about all our properties fit this mould, with the exception that sometimes we will pick property up above 400K.


    The above criteria is basically the same criteria that we would work off anyway.”

    Thus trusting in these words, I went ahead and signed the contract with DDP to be my Buyer’s agent.

    2) My Actual Experience:
    • DDPs calculations to check the gearing of the property often included inflated rent values, did not consider possible periods without rent (which other buyer's agents factor in their calculations) or used lower values for other charges.
    • The expected buying price proposed was not below market value. In fact when I did my own due diligence, most times I found the property was listed at the price that DDP was proposing to buy it.
    • None of the properties that I checked met the proximity to transport remit from my email.
    • The properties proposed were in the general area of south east Queensland. All recommended properties were sent with the positives of buying in that area, which was common knowledge available in the public domain. At no time was a comparison done to indicate why I should buy in one suburb over the other, while other buyer's agents even go down to street level preference for their clients at a far lesser fee. The experience seemed to me as if whatever the customer picks from the stock sent will be sold to the customer as the best buy by DDP.
    • The criteria provided by me before signing the contract have not been adhered to in my opinion.
    • The first property that an offer was put on was indicated by DDP as a 2003 build which was a key reason why I picked it, expecting it to be low maintenance than older properties. DDP’s proposed price was $360,000. I was shocked when I received the building and pest report which compared the property with properties of the 1970s. On visiting the property personally, it was evident that the property build year was more 1970-1980s and there was quite a bit of repair and maintenance cost that would be required. On asking DDP to negotiate based on these points, I was told that AUD 360000 is the best price even though the property was 20 to 30 years older.
    • Also, the DDP estimated rental range for this property was AUD 390-410 per week. On querying the property agents on site, they clearly stated that the range was AUD 350 to 370 per week and they won't be able to get more than that, which made the property severely negatively geared further. This also indicated to me DDP’s lack of area knowledge. Finally we asked for a $5000 discount as a negotiation, which was not accepted by the seller and we had to pull out of the deal. Interesting to note that the property did sell finally at a lower price. On my complaint and strong insistence, only the building and pest inspection report cost, which I had paid to the Inspection company was refunded by DDP.
    • DDP indicated that the asking price for the 2nd property that I ended up putting an offer on was AUD 430000, although the online advertisement asked for offers over $420000. In this property the lower level was just renovated and it was advised that this was a dual occupancy property with separate metering, again a key reason for my decision to go ahead. Based on my insistence to reduce the offer price, the offer was finalised at AUD 425000. However, when I personally visited the property the selling agent revealed that the lower level ceiling was not of legal height and hence I would not be able to lease it as two separate properties as a dual occupancy. On returning back and literally forcing DDP to ask the selling agent, it was further revealed that no council approvals were obtained for the renovation carried out on the lower level which included a fully functional kitchen. This obviously put me as the buyer at severe risk of litigation in an event of an untoward incident like a fire in or due to sections of the property for which council approval had not been obtained and someone is hurt due to it. Moreover, in the case of damage to property due to these unapproved sections, the building and landlord's insurance would be voided. Despite these risks which were pointed out by me, I was still recommended by DDP to buy the property without any price reduction, although it had potential to put me under serious litigation and financial liability.
    I believe that buyer's agents are appointed to protect the buyer against such risks. In this case, a seasoned buyer's agent would have immediately inquired with the selling agent regarding council approvals in case of a renovated property even before recommending the property to the client or would have noticed a lower than regulation height if they had personally visited the property.

    3) Lack of proper due Diligence:

    My experience has shown a sheer lack of due diligence from DDP on the properties recommended. My opinions are below:

    • Information provided by DDP on properties was already available on the internet in the public domain.
    • Moreover, in the cases above, the information provided was proven wrong or basic checks were not done resulting in deals getting cancelled.
    • As would be expected from a buying agent, who is supposed to act as the eyes of the investor when purchasing interstate and especially when charging an above benchmark premium fee, DDP never viewed the properties before recommending them or even before the initial offer price negotiation or signing of the contract. In my experience, they have relied on the internet and the information provided by the selling agent rather than doing their own visual checks to verify the facts. It was only when I went personally to visit the properties or while doing a building and pest (after the offer price was decided), when a potential property manager was sent to the property. Querying these property managers have revealed that the expected rent values were inflated and that the proposed property would not fetch the rent quoted by DDP.
    • The amount of effort, time and money that I had to put in to validate information provided by DDP and to carry out my own due diligence completely negated the reason I took a buyer’s agent in the first place.

    4) No Service for Buyer Advantage:

    In my experience, DDP also seemed to be more interested in closing the deal than negotiating on behalf of me, Whenever a point of negotiation was brought up (always on my initiative), I was told that a lower price cannot be obtained. There was no attempt to try to negotiate with the seller, until I pushed hard and pleaded to do so. At all times it seemed from my experience as if I was being sold the property by my own buyer’s agent !!

    5) DDP Mortgage Broker Incompetence:

    My experience also showed that the mortgage broker suggested by DDP provided a number of false quotes in terms of rates and provided wrong loan terms while quoting the rates. One instance was where I clearly indicated that I wanted an interest only loan and I was provided with a principle + Interest offer. A number of instances like this finally caused me to find my own mortgage broker.

    The above instances indicate to me that DDP never fulfilled the initial remit that was agreed before I even signed up with DDP. Moreover rather than making the process less stressful, the lack of due diligence, checks, buyer- advantage negotiation and service expected from a buyer’s agent has made the experience highly stressful for me and negated the reasons I decided to use a buyer's agent. Apart from the lack of value for a high fee price of AUD 13900, I have also suffered unnecessary financial loss (approx. $1005) in terms of unnecessary trips to Queensland and the 2nd property Building and Pest report for properties which should have not been recommended at all had the proper due diligence been carried out.

    The above is my factual experience with DDP and I believe it is important for experiences and reviews to be placed online, for the benefit of other customers who can weigh experiences and take a call.
     
    Last edited by a moderator: 24th Apr, 2017
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  20. Jackson Jones

    Jackson Jones New Member

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    6th Apr, 2017
    Posts:
    3
    Location:
    Sydney

    I started with them around 4 years ago now and had a totally contrasting experience. I used DDP after I'd been sitting on a heavily negatively geared studio apartment for a few years and it was really hurting me. We sold that and tripled the size of my portfolio in just under two years. The brief was "if i lose my job, i want to keep the property's i buy". It's been three years now and I've never been so comfortable in high amounts of debt. All facts checked out, all purchases under market value and a great support team. Great equity growth and a positively geared portfolio - the two big boxes ticked, so I couldn't be happier really. I'm gearing up for another purchase as I type.