澳洲Australia property John Fitzgerald's - 7 steps to w


在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m


Hi everyone,

I'm new here and am planning to get my first investment property. I have attended John's seminar in Perth lately and attended the first appointment with their consultant. Both seminar and appointment sounds quite positive to me.

However, I would like to get more opinion before making any decision. Who has actually bought an IP from them and what's your thoughts on it? Are you happy with it? For those who didn't why?  

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gees are these guys still spruiking? suggestions: search this forum on the topic, read this forum (for days if necessary), ask and learn. A prepackaged resi IP is the last thing you should be buying IMO, particulalry now IMO (in a boom these types of investment an actually be ok - because as they say a rising tide floats all boats).  

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Take note of their advice to get into property, but never buy properties through anyone. It's always a ploy to add their margin ontop of the property, refer you to their inhouse mortgage broker, accountant, conveyancer to they can receive a full buffet on you.  

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I've got a pair of running shoes, if you want to borrow them.  

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geoffreyliau said: ↑
Hi everyone,

I'm new here and am planning to get my first investment property. I have attended John's seminar in Perth lately and attended the first appointment with their consultant. Both seminar and appointment sounds quite positive to me.Click to expand...
You could do a lot worse than follow the buying method similar to his '7 steps' book and placing higher priority on that over what you're told later.

What spruikers preach and what they sell are quite different things.

Here's seven steps of my own:

1. Note how the book says that 'as all capital growth comes from land you should buy someting with a high land component' (ie 'worst house/best street' theory).

2. Then pick up his sales material. Note where it states these offerings are good investments because they have 30-35% land component and high depreciation.

3. compare these offerings with homes in 20 - 40 year old suburbs not far from these new developments. Work out the rough land value ratio compared to vacant land in the new subdivision (which if anything might be worth less due to greater distance from services and smaller block sizes). You might find that established houses have land value ratios of maybe 70%, may be on blocks large enough to subdivide and could have some improvement potential.

4. If 35% land value component is good, surely 70% is twice as good. If you believe what it says in the book - ie land appreciates - it shouldn't be hard to guess which is likely to do better long-term?

5. Depreciation can be great if you're in a high income stable job and only have one or two properties. But note that it falls off if your income drops or you buy more properties (and run out of tax deductions).

6. Beware of past growth comparisons for established suburbs (or the city as a whole) versus new estates. Chalk and cheese.

7. Why should you pay more for brand new if established is cheaper? It will be secondhand as soon as you buy it anyway. Price the following for useful value comparisons:

a. What Fitzgerald's spruiking

b. New project home in a similar area typically marketed to first homebuyers (make allowance for 'hidden' expenses that the basic package doesn't include)

c. A relatively new (but established) home that's a few years old (this still has high depreciation if that's your thing)

d. An older home in a more established suburb in the same corridor (less depreciation but more land, some improvement potential and nearer amenities)  

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Thanks for the prompt response guys. I have actually searched the forum and read thru all the posts before creating this new thread. I have even googled John Fitzgerald and read about what most ppl think about this program in other forums and article but would love to find out if who actually bought a IP from them...at the moment, i didn't find any except from their own website which doesn't count :p

Anyway, since they are a company who goes out and do their market research, buys a big block of land, develop and sell them to their client, do you mean they will rip you off by selling you over value properties (read on another forum) or in an area that doesn't give you good CG? or another example will be if you have done your homework and think the area that they are building will potentially produce good CG, will you still go with them or rather get it yourself?

They told me during my appointment that i can actually go to the site, pick a block that i like and decide. If i'm not happy with the area, i can just walk away, no question asked. Of course, before deciding to go on site, i will be doing my own research on the area whether i have made my right choice or not.

Is there any hidden items behind this program besides paying them 3% for the first IP and 2% after?

and whats the reason where many ppl out there thinks that this program will rip them off and might cost them alot of money since they said 3% is all you pay?

Since they are one stop shop who provides finance and their own valuer (which i don think is a good idea to go with their own valuer), better off to get my own if i'm one of their client, what is the best way to invest if you are a person who doesn't have much time researching and not sure where to buy etc but wants to get an investment property which produce reasonable CG?

Sorry if my questions sounds dumb as i'm really new to all this :confused: but yea i know there will be experts here which will shed some useful info to me before going into something like this and regret later. :D

Thanks!  

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Spiderman! thats useful. I think i was typing my reply at the same time when you responded :D Anyway,well written and is very informative. thanks!


What spruikers preach and what they sell are quite different things.Click to expand...
Ah! is that the main reason why ppl don go with them?

5. Depreciation can be great if you're in a high income stable job and only have one or two properties. But note that it falls off if your income drops or you buy more properties (and run out of tax deductions).Click to expand...
Does it mean it doesn't really matter if you buy an older home if it cost you less but gives you less depreciation if its a 20y.o house? and on the other hand it might give you more capital growth because the land value ratio is higher?  

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You seem quite committed to buying from them, despite the advice given here, on this forum. So, I'll leave you to it.
If you're looking for their clients, you won't find them here. This is a forum of serious property investors who take responsibility for their actions and their investments.
Good luck.  

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Hi Rob,

Maybe is the way that i have expressed but No i'm not committed to buy from them eventho after reading 2 of their books and all materials i got from them. Just curious to find out why ppl don go with them thats all :)

I would prefer to go thru everything myself actually :) I'll spend sometime doing more reading on this forum as i've found out this forum very useful :D  

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Friends of mine bought land and built a house on the outskirts of Brisbane through this company. What they found attractive about this deal, was that they were being looked after, as they were both very busy.

A few years later , they felt they would have been better off if they had just organized everything themselves. They would have had better choices available and it would have been more cost effective. For that kind of deal and for the convenience ,you always pay a price!

RK

This is my opinion only; please do your own research.  

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geoffreyliau said: ↑
Does it mean it doesn't really matter if you buy an older home if it cost you less but gives you less depreciation if its a 20y.o house? and on the other hand it might give you more capital growth because the land value ratio is higher?Click to expand...
Depreciation may be helpful with cashflow subject to previous caveats.

But the difference is that the 'gains' from depreciation fall off each year (ESPECIALLY if you buy more -ve geared properties and get into lower tax brackets due to their losses).

Whereas capital growth snowballs with a compounding effect long-term, increasing each year.  

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hi geoffreyliau,

3 months ago we went to a John Fitzgerald seminar, read his book and had an initial consultation. Of course we then Googled him and stumbled across this forum - and have not looked back since!

We did have a consultation with one of his sales reps. We found it quite an informative process, as we have never dealt with off-the-plan / estate developments before.

The biggest stumbling block for us was the lack of location - his offerings were all in the fringes, not near public transport, etc, thus diametrically opposed to our general investment philosophy (and contradictory to much of the advice set out in his book). They were spruiking areas that we would not have bought in otherwise.

We have since spent every spare opportunity doing our own research for our next purchase. Its time consuming - bordering on obsessive, but we realise now we wouldn't have it any other way. Spend a few hours (or more!!) on this forum, and you will gain a lot more knowledge. On the otherhand, if you really would rather outsource the research, why don't you consider using a Buyer's Agent? They would charge less than 3% (someone else correct me if I'm wrong).

In a roundabout way though, we do have to thank John Fitzgerald because if we didn't go to his seminar and googled his name - we wouldn't have found Somersoft :)  

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geoffreyliau said: ↑
Hi Rob,

Maybe is the way that i have expressed but No i'm not committed to buy from them eventho after reading 2 of their books and all materials i got from them. Just curious to find out why ppl don go with them thats all :)

I would prefer to go thru everything myself actually :) I'll spend sometime doing more reading on this forum as i've found out this forum very useful :DClick to expand...
It was a JF bio in the Virgin inflight mag that got me started in property. But I chose to follow my own path. I did attend a seminar of his a few years ago. I was not impressed with some of the information provided. Very misleading. Also, there seemed to be a lot of people in the audience who were loudly saying how happy they were with their JF properties and what a great bunch of people they were. What the? What were they doing there in the first place?  

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On the otherhand, if you really would rather outsource the research, why don't you consider using a Buyer's Agent? They would charge less than 3% (someone else correct me if I'm wrong).Click to expand...
Thanks for this Ski-bum. I didn't know about this. By the way, where do we find them from?

In a roundabout way though, we do have to thank John Fitzgerald because if we didn't go to his seminar and googled his name - we wouldn't have found SomersoftClick to expand...
This is exactly what i'm experiencing now..hahahaha

I did attend a seminar of his a few years ago. I was not impressed with some of the information provided. Very misleading.Click to expand...
Looks like most of you have attended the seminar but didn't end up as their client :) But yes i agree that his book actually is the one who makes me wanna start off with investing in property.

I have another appointment with them next week and thinking should i just go and listen or find a reason not to go...lol  

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geoffreyliau said: ↑
Thanks for this Ski-bum. I didn't know about this. By the way, where do we find them from?Click to expand...

do a quick search on this forum - there should be some recommendations you could start with.


geoffreyliau said: ↑
I have another appointment with them next week and thinking should i just go and listen or find a reason not to go...lolClick to expand...

If you already have an appointment with them, and have the time - why not? I'm always quite cynical at those things, but even if you learn only one new thing about property investment, then its worth it.  

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3% to buy the first property and you buy it off them? so in effect a buyers agent who sells his own property to you and you pay the price he says and then pay him another 3% for introducing you to the property? Now thats a sweet business  

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Bigtone said: ↑
3% to buy the first property and you buy it off them? so in effect a buyers agent who sells his own property to you and you pay the price he says and then pay him another 3% for introducing you to the property? Now thats a sweet businessClick to expand...
And say the long term capital growth is 6-7% p.a. (high likelihood). Are you willing to pay 1 year's worth of capital growth for the services provided?  

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or if the cap growth is nil for 5 years or more (highly likely) are you prepared to give up 6% of your gross capital (plus interest there on) whilst holdign a loss making property for this period?  

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this post looks interesting. How much does buyers agent normally cost?  

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geoffreyliau said: ↑
this post looks interesting. How much does buyers agent normally cost?Click to expand...
2.5% max but normally cheaper  

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