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Metropole/Momentum Wealth/Binvested

Discussion in 'Property Experts' started by fajji, 3rd Dec, 2015.

  1. fajji

    fajji Active Member

    Joined:
    2nd Dec, 2015
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    Location:
    Melbourne
    Hello,
    Has anyone used any of the above or others in terms of helping with strategies and buying properties?

    I have had the free consultation with Momentum Wealth and Metropole and below is the summary:
    Momentum:
    - One-off fee of $4,400 incl GST (includes 10 year strategy plan and books/dvd to help mentor and annual review of plan)
    - will only be buying in Perth and Brisbane
    - Buyers agent charges will be $10k minimum and increasing by 2k depending on which bucket the property falls under

    Metropole:
    - One-off fee of $1,100 incl GST (same as above)
    - will only be buying in Sydney, Melbourne and Brisbane and definitely not Perth
    - will only be buying inner city suburbs within those cities (e.g. Hawthorn, Kew etc for Melbourne) as they have the most growth
    - Same/similar concept to LOE i.e. buy IPs, let it grow, use equity to buy another until a good foundation and then use the cash. Andrew coins it as 'Cash Machine'

    Binvested:
    - $295 incl gst (group session)

    Some other discussions by me have pointed out that most of these guys use the following strategy:
    - Buy property X for $500k (listed price $530k)
    - 6 months down the line, they get a valuation from the bank showing property X is ($575k)
    - Now with the extra equity can use to get next property

    However, the catch is that apparently there is a tie up with the bank who gives it a much higher value than the property would actually sell for. Through my research and discussions I understand that there is no accurate method of valuing a property. People use various techniques such as comparable sales, surveyors, rent reality as suggested by Navra and probably others I haven't even heard of. It is not illegal because valuation is just an opinion but probably immoral. Anyway, the point is that sure having more equity is great but I also want to keep an eye out on the 'real' value of assets I am holding (i.e. if something happens, I know I have this amount)

    Apologies for the rant and I am not trying to bring down any of these companies and the information is through discussions with people, therefore just trying to find out if anyone has used any of the above or other companies and their feedback.

    Thanks
    FM
     
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  2. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    If this is not illegal, it probably should be.
    Would that not be considered fraud of some sort?
     
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  3. fajji

    fajji Active Member

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    Exactly my thoughts but this is hear-say and don't think it can ever be proven
     
  4. EN710

    EN710 Well-Known Member

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    You can do the 10 year plan yourself - just need Ms Excel (or google doc)

    What's your main goal?
     
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  5. fajji

    fajji Active Member

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    I recently turned 29, so goal is to retire by 45 or at least have a couple of fully paid homes. I have some shares but very minor and I have seen a lot of people be burnt in the share market and my knowledge is very poor to invest a decent amount.
     
  6. fajji

    fajji Active Member

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    Short-term goal is to figure out where to buy my first IP! I do my research online but just not confident enough to put my money as I always feel I haven't done enough and thought of using one of the businesses mentioned above to give me that push in the right direction.
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Unless you do something extra ordinary, or have significant current resources, or your post retirement needs are small, a single minded strategy around the one asset class is unlikely to give you the result you seek in appox 1 to 1.5 or so cycles.

    Goal setting and reverse planning is an important thing in my experience.

    It gives you perspective on what risk you need to take to achieve your required outcome

    ta
    rolf
     
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  8. fajji

    fajji Active Member

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    Thanks rolf. Is there a spreadsheet out there to help with this? I am a very risk adverse person but trying to push myself to get out there however don't want to take the chance with most of my savings. I don't mind paying someone to help me with this but I don't want to be conned either
     
  9. bob shovel

    bob shovel Well-Known Member

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    Find a broker and use a buyers agent. Both you'll find here. They can help you manage the risk within your comfort zone
     
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  10. S.T

    S.T Well-Known Member

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    I'm not selling anything
    All the information these guys 'teach' you is on this forum, plus more. For free! So if you have some time and the inclination to learn - start reading and asking more questions.
     
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  11. MsAli

    MsAli Well-Known Member Premium Member

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    Hi Fajji - As bob said, look at your maximum borrowing as a first step. I recently blogged about it, on the back of my own experiences and as to how I will approach it, had I been starting out again.

    So for instance, you could buy $3m in real estate, then you work back and divide that between various properties at the desired rental return (based on your loan servicing and risk profile).

    This could mean buying...
    - $1m x 3 properties
    - $300k x 10 properties
    - $100k x 30 properties

    It will come down to what YOU feel comfortable with (strategy) around:
    - Borrowing
    - Asset type (house / unit / villa / townhouse)
    - Rental yield
    - Cash flows (+ve / neutral / -ve bottomline)
    - Location - (is the property near amenities or is the property in the middle of suburbia? what's the population? Metro area or regional)

    --> what's your aim around your bottom line? @monalisa and I used to draw up an excel spreadsheet to suggest:
    Portfolio Size = $xm
    Capital Growth = 5% (or 8% or 10% or more like 80% in most parts of Sydney due to the recent boom!)
    Then list out the years and multiply the portfolio size with growth. It compounds!
    Year 1: 10% growth means, you have $3.3m
    Year 2: 10% growth means, you now have $3.63m
    Year 3: 5% growth means, you now $3.81m

    It can be difficult to see where you are going when starting out. However, my suggestion would be to aim HIGH and work back from what could be possible!
     
  12. MTR

    MTR Well-Known Member Premium Member

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    HI Fajji
    I would take Perth BA off the list, currently its a falling market which means prices are going south. I would not like to see you lose money.

    MTR:)
     
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  13. MTR

    MTR Well-Known Member Premium Member

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    Nice post Ms Ali
    Would you recommend Sydney at this point in the market, now that we are seeing cracks form?
    Are there markets within market in Syd worth looking at??

    MTR:)
     
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  14. Be Developer

    Be Developer Property Developer Business Member

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    @fajji

    As @S.T said, go thru this forum, you will get idea about ins and outs of property investment.

    I don't know how those companies can draw up a plan for 10 years based on one asset class. Do they even consider variables like market trend, boom/bust?

    Most successful investment plan/strategy will need combination of asset classes, sound knowledge and skills and ability to drive it yourself IMHO.

    You may want to use spreadsheets as a guide line but you will have pull trigger as it seems fit to you.

    In property field (and in this forum) you will find some successful investors.

    In stock/etf, @The Falcon Has good info.

    Good luck!
     
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  15. MTR

    MTR Well-Known Member Premium Member

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    Marketing is crucial, makes their job easy when they say stuff like -
    the 10 year plan, property doubles every 10 years.

    Too bad if you get the TIMING wrong, or buy the wrong product. That's why I mentioned if you want to lose money buy in Perth now.

    MTR:)
     
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  16. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    its only fraud if you get caught!
     
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  17. willair

    willair Well-Known Member Premium Member

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    Location:
    Brisbane..

     
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  18. fajji

    fajji Active Member

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    Melbourne
    To be fair by going through Metropole I realised that there is a concept such as living off equity which lead me to the various investor forums which eventually led me here. I guess I was right in terms of that there is so much more I need to learn before I buy the first IP as I only came across all of this in the past few days and being researching areas to buy for a while now!

    I created a spreadsheet based on the LOE model and tried including rental reality concept. Wondering if someone could have a look and tell me if I am missing something. I can upload it once I get home. I guess the first thing for me is where to buy my first IP.

    I know where I would like to be and how long it should have taken...problem is a way to get there. I am happy with any strategy as long as it meets my end goal. I am just not knowledgeable enough right now to decide for myself which is the way to go. Prior to all this I used to think the aim for an investor for an IP would be to live off rent but I understand its all about capital growth and rent kicks in towards the retirement years or LOE.

    But anyway, back to topic, from the responses so far, it seems like most people are against the BAs mentioned above. Anyone that has used them and had a good result or used and didn't fare too well?

    On a side note - Is NZ a good place to buy at the moment?
     
  19. S.T

    S.T Well-Known Member

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    I'm not selling anything
  20. MTR

    MTR Well-Known Member Premium Member

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    I could be wrong but NZ has already had a major boom. Also if you decide to go down this road there is also the currency play that you will to beware of.
    I have in this market at least 4 years ago now.
    I like that you don't pay stamp duty or capital gains tax in NZ