Performance Property - 20 million dollar portfolios ?!? - has anyone used these guys before ?

Performance Property Home | Property Specialists for Sophisticated Investors

Hi there

I found this company - and they seem to target high net worth individuals - doctors and the like

It looks like that they develop investment plans for clients using property - both commercial and residential

But what I have not seen before is that have several investment options ranging from a 2.5 million investment property plan to a 20 million investment property plan with examples on there website

They also have " entry level investment programs " as well

They have case studies on there website of there existing clients portfolios

I have not seen case studies posted like this before where they are aiming for a 30 million dollar portfolio - From $0 to $14 million in 10 years

I'm interested if anyone has used them before and what people think of the case studies that they have posted - they seem to recommend a mix of residential and commercial but they also have a internal company portfolio which you can invest in as well

 

They have a plan for someone to have a 20m portfolio if you have 6.5m equity, 1m income and spare cash of 100k a year. There's nothing special about this strategy. They would have to have special buyers agent skills.

That 14m portfolio is someone on 3.5m income, buying 10m of property, which has increased to 14m. The numbers are big but the ratios and percentages aren't. At these levels though they would be competing with private wealth services offered by the banks?

 

I've never seen a case study for a 30 million dollar investment Property Portfolio before - I have not had a chance to sit down and have a look at there strategy when putting together something like that . I wonder how it compares to some of there smaller investment portfolio strategies . I'll sit down tonight and have a good look at it

It nice that this company puts up case studies for us to look at

I'm wondering if anyone here has used them before and if they had a good experience

 

They have a plan to BUY a 30m cost property portfolio. That isn't 'hard' as such. It just takes a lot of income, a lot of deposit and a lot of borrowing. What would be impressive is if they have a plan for someone to end up with a 8 figure net asset portfolio starting with relatively little. Even that isn't too 'hard', you just have to buy and hold for 50 years.

 

This is theirs, but we all know know that's for plebs, so here's mine!



I only charge a modest fee of 1%!

 

At the lower numbers it doesn't work as well, but this is just building a portfolio that's
20x your income
if you have 6x your income in equity
20 year investment horizon,
10% savings rate

 

Spruikers. Be wary. In the past ASIC have reported on clinet examples as being embellished or just incorrect and misleading. You can be misleading by omission of truth. Its damned hard to achieve what they are selling these days. They have one strategy too...Sell you more until you max out credit. One of the biggest scams of the past 20 years is the notion of unlimited credit making people wealthy.

$20m of property may be crippling when land tax is considered. Let alone rising / high rates. It could be like operating a steam train using $50 notes.

 

What good is it to you if it cannot be replicated? Honest question.

Most of those case studies (bar 2) show the accumulation started well before APRA intervention.

 

You can argue it's a managed fund, so you can charge 2&20! (2% management fee and 20% of profits).

 

I have used Performance Property and dealt with them professionally. They are definitely not spruikers, in fact they are almost the exact opposite, they focus on purchasing in established A grade suburbs, and are not trying to swindle mum and dad investors into purchasing off the plan with promises of huge tax deductions.

I used them to purchase a property for myself and many of my clients have used them with very good results.

I don't think it is necessary to use them and an investor with the time could potentially achieve similar without their help but they are not scammers, shysters or spruikers.

 

The biggest problem today in building a large portfolio is land tax of 2% in NSW. Having worked on my portfolio for 44 years, I have to change strategy as land banking for future projects is unaffordable. One of my sites which I value at $5 million is land valued at $8 million and pays $160,000 land tax and $16,000 council rates on rental of $20,800 per annum. I have protested every year about the unfair valuation but as there has been no sales for 8 years in this zone, they choose land from the same street that has been rezoned residential and not non urban and give a 50% discount. I have tried to sell at their valuation but not been able to sell and they say this is not acceptable unless I proceed with a sale.
Selling of course defeats the purpose of having the investment.

 

Are their fees similar to/on par with other Buyers Agents?
That's what it looks like to me, a Buyers Agency, although I have not used them /dealt with them.

 

Yes, I think I paid c2.5%. I purchased with them in 2017 and have seen very good growth (but of course so have most people since then). I receive their monthly reports which detail their research, it is very comprehensive and touches on infrastructure spending, migration etc etc. They also do annual portfolio review and include properties you have bought without their help.

I am not sure if the entire portfolio plan comes at an added expense, when I used them I don't think they had built that out to the level they have now.

I am not saying they are the absolute best but I know that they are trying to do the right thing by people and not trying to rip people off.

 

Remember growth is what the market does. The BA doesnt produce it. Their reporting is just data.

BAs come at a cost for convenience and need to BUY. Like selling your own property you CAN DIY...But do you want to ? many interstate buyers lack confidence or see a broader set of eyes as having value. Just need to determine if the value exceeds cost

 

A valuation opinion by a reg valuer is what you need. Reg valuers set the land values so they know people and access data. You certainly do not need to be selling and have your own evidence of lower offers etc. That only reflects buyers views. Not uncommon for undeveloped land that it attracts a discount to apparent value as it raw and crude and needs a lot of money to get approval for any use. Its like selling to a developer. two prices... Cash or option. .Unconditional cash is far less than a option.

Maybe find a local land dev agent and discuss with their team for valuation. I have seen many who have success with that

 

the valuer general obtained a registered valuer and as I have been a licensed real estate agent for over 40 years I spoke to him with my Manila folder full
Of comparables of the same zoned land within 3 kilometre. I put forward a a large portfolio of evidence and comparables and stated my suggested value. The VG chose properties that had different zoning but were closer. After the hours we spent together and my submission he then kept the value the same. I thought after you put in your submission only a court decision could change it.

 

This is so painful to read. We have tried objecting before and have not succeeded.

Regarding using someone like PP, I am not sure if the end result would be the same as what you can do by yourself doing your own research.