Hi, My name is Tam, I live in Sydney and I am hoping to be a FHB soon. I'm terrible with money so I need some advice on where/how best to invest and a friend recommended Iron Fish Group. Anyone know anything about them? Thanks!
I don't know anything about them specifically, but they look the same as many other property one -stop shop selling off the plan. If you're terrible with money, I'd look at getting that fixed before you even think about investing in anything, or this is going to end badly for you one way or another.
Thanks, I have sorted myself financially and have a deposit but want to make clever decisions moving forwards...any thoughts?
I'd avoid a group like this - one stop shops aren't a great idea for a few reasons - Off the Plan is a bad idea generally, but more so at the top of the market. Find out if they sell established property. You pay a premium for brand new - often better off buying established, or building yourself. They often get paid by the developers, on top of any fees you pay - this means that they are not working for you, but sales people for the developers. They then give rental guarantees which sound great but you pay for in the purchase price. Not so much of an issue for first house, but people with existing properties can get done over finance wise when using the in-house broker. Generally I'd suggest at a minimum getting your own legal team and mortgage broker sorted so you have a couple of independent eyes on the deal.
Hi @Tam Welcome to PC. Really good advice from Jess re OTP. Best steer clear. Better opportunities for established properties available for FHB. Where have you been looking to purchase? When you say 'clever decision moving forward' - what are you referring to?
I've had clients purchase through them. Not great results unfortunately, but I think that's more to do with the off the plan property than the group themselves. I'd stay away from any group exclusively selling off the plan, unless you know what you're doing, there's a lot of risk involved. If you know what you're doing, you don't need a group of this nature to assist.
Hi Sana and Mona By 'clever' I mean with a strategy. My budget is approx $500k. My heart says 'you don't mind a studio so stay where you live now in Woolloomooloo. Buy small and do it up. You love the area' BUT my head says 'move a bit further out and buy a one bed in an area on the up and if you hate it, live in it for 6 months and then rent it out'. Any thoughts? Thanks
@Tam, I'd start by hanging out here for the next six months reading this forum. Don't buy untill you get some knowledge behind you. I was in the same boat when I bought my place. By hanging out here and learning I reckon I saved myself over 100k. It was time very well spent.
Buying a place to live in is an emotional decision. What is your goal? and which one of the two options will take you closer to your goal?
welcome to PC @Tam Buying OTP can potentially set you back several years on your investing journey, regardless which company or group, or whatever names they call themselves, they are good at marketing themselves, and good at sales, expert at manipulating human emotions. it is easy to be drawn by the shinning stuff " brand new", "rental guarantee" "no need to pay now" "buy today, get profit when settle" "last chance"... the list goes on. take a deep breath, there are hundreds of OTP apartments available, no big rush, read PC, ask Qs, then you will have a better idea of what you are doing, then do it.
Hey @Tam People tend to be attracted to OTP because it's 'easy' and 'low maintenance'. The reality is that you really need to put just as much consideration into an OTP purchase as you might an existing. You can do really well out of it, but it can also be a mistake- just like any purchase. I would definitely avoid 99% of one stop shops, they sell properties for inflated prices and get paid anywhere between $30,000-$80,000 commissions....!
Hey Tam, before you take any advice, always question why they are giving that particular recommendation and whether they are getting paid and who from!
I've been buying 'off the plan' for almost 20 years..... absolutely nothing wrong with it. Just like any real estate transaction you must do your research. Who cares how much the marketing group is paid...They are usually no different than any real estate agent and take all of the marketing expense risk normally attributed to the developer. Lead generation, sales & marketing, contract preparation, financing approvals, property management, etc. all of which require someone getting paid if it's done elsewhere. If the developer does the marketing, then the prices will be higher.... A point to understand is that if you are planning on financing the transaction, then there will be independent valuations done by the bank or lender. If the property is overpriced they simply will not lend, or they may reduce their loan based on their own evaluation. This will tell you if the price is right. Of course there are horror stories with buying from some marketing groups, but like I said, do your research and buy the best properties you can at the best prices you can...buying established is no guarantee of anything. I can guarantee you that someone is always getting paid, nobody works for free.
I used Ironfish for my first investment prior to becoming educated. The process in dealing with Ironfish has at all times been professional and they have a very attentive and helpful team, however the actual investment has been very poor. I purchased a 1 bed apartment in Southbank, Melbourne in an oversupplied market 2.5 years ago. As you may very well anticipate, there has been no growth in this market during this time. Knowing what I know now I could have used the $80k deposit to generate far better returns through an established property within a different market. My learnings from this experience, educate yourself, develop a strategy based on your investing goals, and your purchases will be structured inline with achieving this.
