Tips for Home Buyers/Sellers

As part of the show we have created a series of tips to provide practical help for home buyers and sellers.

The latest tip is shown on this page and is updated regularly.

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Tips

Latest Tip - “"Do it all for you" investment companies”

This was my response to a question recently from Michael (a listener to the show) who was concerned about ‘putting all his eggs in one basket’ and investing with a ‘do it all’ company.

While there is nothing wrong with most of these companies, you must remember that if someone is doing all the work for you:- giving advise, finding a property, getting finance, securing a tenant and then likely managing the property as well; then it is reasonable to assume you will be paying for these services.

I don’t like giving total control to anyone.    I always like to make up my own mind about where my money will be invested.  Sure, listen to advice but then you decide on where, what, how and when you will invest.
If you are going to engage with one of the ‘do it all for you companies’ then here are some questions you should ask first.
1.    Do you sell your own stock?
2.    How do you source the property you recommend?
3.    Can you show me a breakdown of the costs involved (upfront and ongoing) – including any commissions to you?
4.    Do you have a financial interest by way of partnership with the builder, developer, sales agent or property manager?
5.    Do you guarantee the return?
6.    Is the guarantee underwritten by you or anyone associated with the transaction?

I also suggest a good check of their on line presence.  Check out their Internet site and make sure you can see who is behind the company.  Who are the owners and what are their credentials.  If you can’t find the person or company heading it up, then there might be a very good reason why they are not identified.

Before you proceed:
Have an independent valuation carried out by a registered valuer and discuss the rental potential with an unassociated property manager?