Feedback on Propertyology please

Discussion in 'Investment Strategy' started by SydneyInvestor, 1st Dec, 2020.

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  1. SydneyInvestor

    SydneyInvestor Well-Known Member

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    Hi All, I am looking to work with a Buyers Agent for my next purchase.

    My previous purchase was with a National level BA and there were some things which I was not very impressed with. This time I had made up my mind to buy in NSW not having a property in NSW yet but have 1 in QLD and Vic each. So, I thought of going with a Buyers Agent local to NSW.

    But I recently had a chat with Propertyology to see if I can change my mind and work again with a BA operating on National level. I found them very knowledgeable and they are confident on what they are doing. Although, most of the things went very well during our discussion, there are a couple of things because of which I am a bit hesitant to go with them.
    1. NSW is not one of their preferred locations and they clearly mentioned that if you want to buy in NSW, then do not engage us which is honest of course. They may be looking again at QLD. Now having sold one recently in QLD with not good experiences and already having one there, I am not too keen but I also believe that a company like them might be spending big on their research so would have selected a good location.

    2. There methodology seems to be a bit rigid and different from other BAs. Like other BAs, they do not present property to you for discussion and then go ahead if you like it. It is sort of like a rigid recommendation of the first property based on their process. If you do not like the property somehow, it might be a concerning issue and a fierce discussion. So, in case you have a difference of opinion with Propertyology, I am not sure how things can turn. This is also of concern to me.

    Has anyone worked here with Propertyology before and can share your experience please.
    Thanks!
     
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  2. Simon Hampel

    Simon Hampel Founder Staff Member

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  3. SydneyInvestor

    SydneyInvestor Well-Known Member

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    Hi @Simon Hampel , thanks for your response.
    I totally agree with you. The only thing stops me from doing that is Propertyology is a big name and spends a lot of money on research for areas which could generate good capital growth. My main aim is to buy a property which could generate good capital growth for me. Say I buy in an area of my choice using local Buyers Agent and that does not grow much, it will not give me expected result.
    Hence, I am in 2 minds on what to do. My previous 2 properties having not generated much growth, I want to avoid any mistakes with this one as I cant keep buying wrong properties to repent on my decision after number of years and no way to turn back and accomplish my retirement goals :)
    Thanks again for your response!
     
  4. Trainee

    Trainee Well-Known Member

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    No one can predict the future. Even with all the information available, everyone has different ways to interpret that information.

    It might make sense to use a buyers agent to buy in an area or state you are not familiar with, or need help with the process. But you need to at least have an opinion.
     
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  5. SydneyInvestor

    SydneyInvestor Well-Known Member

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    Thanks @Trainee , agree with you. Thats why looking for someone who has first hand experience with them
     
  6. Trainee

    Trainee Well-Known Member

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    Think about what answer you are looking for. If someone said a buyers agent suggested Sydney in 2012 and they made a load of money, then you would think they are geniuses. But if that buyers agent has suggested Sydney for the last 20 years, there would have been years when they looked like idiots while other states boomed. And over the last 20 years Sydney growth has been average.

    When asking a question, you have to shade all the answers based on who is answering, timing, resources, etc.
     
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  7. Lindsay_W

    Lindsay_W Well-Known Member

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    Such as? I would love to know where they spend their money for this 'research'
     
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  8. SydneyInvestor

    SydneyInvestor Well-Known Member

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    From what I understand, they spend their money and resources on research, tools to analyse data, other subscriptions, travelling to those areas so that they can be on ground to understand the economic factors, infra and projects coming to those areas.
     
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  9. Lindsay_W

    Lindsay_W Well-Known Member

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    Ok, sounds like you're convinced, sounds like you just need to decide if their fees are worth the advice?
    I have not used them, hopefully someone who has comes here to give you some insight.
    The properties they recommend, are they existing property in growth areas or brand new.
    What area's have they recommended to you in QLD?
     
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  10. SydneyInvestor

    SydneyInvestor Well-Known Member

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    They are existing properties. I basically want to understand from someone who bought via them on how the property has gone in terms of capital growth since it was bought with them and how comfortable the person was with their process which looks a bit rigid. They have not recommended any areas yet as I am not their client yet.
     
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  11. momentum26

    momentum26 Well-Known Member

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    Usually they talk like this, the areas we are buying in for our clients....Some BAs hold their cards so close to their chest, that they are more focussed on signing you up for the retainer fee at the least and less focussed on what is right in the clients situation. Stick to the ones with REBAA accreditation for your target areas, and Propertyology isn’t one (I think).
     
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  12. SydneyInvestor

    SydneyInvestor Well-Known Member

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    Thanks @Lindsay_W , Propertyology is accredited with REBAA.
    Actually they told me upfront that if you want to buy in NSW only, then we might not be good for you. That ways I thought they were honest upfront as well. But again, you never know...
     
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  13. momentum26

    momentum26 Well-Known Member

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    In that case my bad. The last when I had checked they weren’t. They may have got it done now as you say. Aside from this, you want to be open with your BA and expect them to receive your feedback/comments, not get into some egoistic discussion if you were to reject their shortlisted property. They should be willing to work with you till you are satisfied 100%
     
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  14. rayc

    rayc Member

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    G'day there,

    I've bought 2 properties through Propertyology and have been happy with them. I'm Sydney based and wanted to invest outside NSW (1 in VIC and 1 in QLD).

    Second one settles on Monday and the first one I bought in 2018 went up in value from ~400k to 440k (bank valuation) in about a year so that's been good. Cashflow positive from day one, rented out the whole time. Early days but it's been a good start.

    They were great to deal with. I'm busy work-wise so having them handle a bunch of the process was really useful. As for fees, I justified it by asking - Can their skills at buying property likely result in an outcome that is greater than what I (as a newbie) would have achieved - it was a likely yes.

    I've found it worthwhile and they seemed much more thorough and detailed (with lots of evidence for supporting their reasoning) than most buyer's agents I've come across.

    Hope that helps!

    Ray
     
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  15. Lindsay_W

    Lindsay_W Well-Known Member

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    Hi Ray,
    Would you please care to share the numbers so we can see how much cash flow positive it is?
    The info will be useful for anyone looking to do the same.
     
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  16. rayc

    rayc Member

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    Yep sure, repayment is around 670 per month (interest only) and the rent is 440 pw, so 1911 per month. Did 20% deposit
     
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  17. Trainee

    Trainee Well-Known Member

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    So 320k loan, 2.5% IO. Rental yield 5.7% on cost. Take about 1% for fees, insurance, etc (body corp?)
     
  18. rayc

    rayc Member

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    Yeah I'd say thats pretty close, loan is currently 311k we did a few extra payments
     
  19. Lindsay_W

    Lindsay_W Well-Known Member

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    Council Rates? Water?
    When you say cash flow positive is that Net, ie. after all costs?
    To me, true cash flow positive would be, rental income minus all holding costs (rates, insurance, PM fees) and ideally when on P&I loan repayments, that's just my interpretation of it. Then it's truly paying for itself.
    Do other people determine cash flow positive on gross figures and interest only?
     
    Last edited: 3rd Dec, 2020
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  20. rayc

    rayc Member

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    From memory it was like 1900 a year