Opencorp? H+L vs existing?

Discussion in 'Investment Strategy' started by Rifraffe, 14th May, 2019.

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  1. Rifraffe

    Rifraffe New Member

    Joined:
    14th May, 2019
    Posts:
    1
    Location:
    Sydney
    Hi all,

    I'm new to this forum and have been reading a lot of your posts so thank you for the information so far.

    My situation is that I'm married (no kids) and we have a PPOR in Sydney, are working full-time, have a smallish equity loan, and are putting all our money into our home loan offset account.

    From reading the different strategies, the one that seems could work is buy an investment property, use the equity to acquire the next proand so on - after acquiring enough properties either live off the equity or sell off properties and live off the rental income in 20 years time.

    I think we may have enough to purchase an investment property around $500k and I've asked my broker for a pre-approval. A place in Brisbane or Melbourne maybe.

    I have approached OpenCorp because a friend recommended me and I'm not sure what to think.

    I have read some negative comments about them in forums but they are mostly from people who have not had direct contact with them.

    My understanding of OpenCorp is that they source blank spots of land 10-40km from the city centre and develop new houses on the lots and they take care of everything in the process but I'm thinking there is a catch somewhere. Probably overpaying on the purchase price of the house.

    TLDR:

    1. Does anyone have experience with OpenCorp and if so, what is your opinion of them?



    2. A lot of people talk about using buyer's agents and that also sounds great but I can't figure out which ones are good. Does anyone have recommendations?



    3. For my situation and strategy, would you recommend buying a home/land or an existing property?


    Thanks and appreciate your comments!
     
    Eric Wu likes this.
  2. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

    Joined:
    31st May, 2016
    Posts:
    2,738
    Location:
    Australia
    A lot of our clients work with buyer's agents, and found good support especially when starting out with their property portfolios - you may want to start with BA's on PC

    We personally prefer established investment properties over brand new, but each to their own

    I'd rather buy something older, well located property, and if its a house, with a bit of land component, rather than H&L on a small block of land, with lots of cookie cutter houses.

    Here is a blog we wrote sometime ago on this topic: Buying Brand New / Off The Plan (OTP) vs Established Property – Property Twins
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,599
    Location:
    Gold Coast (Australia Wide)
    your answer may lie in the conflicting commitments of the above 2 lines.

    What is " good" in your idealogy ?

    Other peoples opinions may carry some weight, but in some ways, thats like going to your friends and asking hey Im going to marry this person and I love them lots, but what do you think ?


    ta
    rolf
     
  4. Eric Wu

    Eric Wu Well-Known Member Business Member

    Joined:
    8th Oct, 2016
    Posts:
    1,603
    Location:
    Australia
    welcome to the forum @Rifraffe

    maybe ask a few questions before committing to any BAs,

    1. what do you want the BAs do for you? bring you value and minimise risks, or just take hassle away ( like let BA taking control of everything and leave you hassle free)

    2. are they real BAs or sale agents dress up as BA?

    3. have you reached out to any BAs ( especially the ones on the forum) and see whether they can relate with you and understand your goal ?

    4. house -land package vs existing properties may both work, what is your risk profile? ( incomes, asset, experiences, liabilities, family, long term plan ....)
     
    Moez likes this.