What you should know about property investment clubs
If you are considering putting your money in the property market and have taken time to research the market, then you will have come across many property investment clubs and networks that are charging investors upfront money to get on the Investment Property ladder. Such clubs and networks promise to find you below market value properties for a finders fee charge or something similar.
Now, one important thing to note about such property clubs is that they are mostly in it to make money from you, not necessarily for you. This essentially means that any property that you are offered will normally demonstrate modest performance with the best properties going to the clubs themselves. If there is any luck, you may end up with a well priced property with modest growth
The type of off plan properties being offered did net some people good profits in the previous years, but unfortunately the boom is now over. The off plan market is pretty much dead and buying one, even at the so-called “discounts” is a dangerous game.
The real money to be made these days is finding properties that have real value in them, as opposed to off plan properties in over developed areas dressed up as good deals. There still a very few good deals to be had in the off plan market, but these are difficult to find and require a lot of research and know how of the market.
Researching the market yourself is property much more beneficial than paying investment clubs to find you the so called good deals. The idea would be to find investments that would come good in both the good times as well as bad. If you are looking to invest in off plan property than make sure you check the factors that will ensure profitability. Why pay some one else (with a vested interest) to do this work for you, when you are probably better qualified to do it yourself? Focus on choosing a property that is favourable to the fundamentals of the market forces – why will the property appreciate and why is the location good? Do not choose properties that are overstock from a developer (being offered by a club) or that do not have genuine discounts.
Better still, if you want to try your hand at obtaining genuine below market value properties, then we have a range of re-sale properties that have profit in them. These are generally properties that have been sold by motivated sellers at discounted prices.