Canterbury Property Services

Discussion in 'Property Experts' started by armorris007, 14th May, 2009.

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  1. Angelpie

    Angelpie New Member

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    Thanks Venom. I will do!
     
  2. JV

    JV Member

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    Hi Guys I have been reading these threads since January,I am very new to this investments.I just wanted to appear here to have my share.
    Thank you guys for your posts,some of them are very encouraging (especially Venum`s,I always go back and read when I am in doubt,thanks Venum)I heard about canterbury through ads and some how it made me to subscribe their mails. Me and my wife had the first meeting with Jodi in April and we got the bank approval and the strategy with the magic numbers.At the moment waiting to find a property which meet the 10 points critaria-hopefully soon.
    It is very interesting to see everyones progress, keep up the discussions guys.
     
  3. pdg

    pdg Member

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    Canterbury one year on

    Hi Venom, I am now one year along with 2 CPS properties and thought I would share my results and perhaps compare with you. The one property has made a net loss of 1500.00 and the other a net loss of about 2000.00. This does worry me a little since interest rates are very low right now. We could not find tenants for either property at the rate CPS budgeted on and had to drop the rent by 20.00 a week on both . CPS came good on their promise to pay rent subsidies at the rate they budgeted on so that was good. As far as my PPOR is concerned, yes it's come down to less than $100 000 from 230 000, but the capitalised interest which is never shown in their graphs has risen more than my home loan has been reduced by. So,overall I am not unhappy because the areas we have built in are starting to increase in value and I sincerely hope they continue to do so or we are going to be in trouble when interest rates start to move. To sum up, in the first year my overall debt has come down by what I have put in less the 3500.00 loss my portfolio has shown. How does this compare with yours? In summarising, I have to say that I am pleased we have gone ahead with this, but people must be aware this in not a quick money making game, it will be a long time before this there is any form of passive income that is sufficient to allow retirement, unless Brisbane property rises in value the way Sydney has which I very much doubt.
     
  4. RDV

    RDV New Member

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    Hello Canterbury-ites!

    Hello All, came across this forum and feel charged up and positive! So glad this forum exists. I was told about Canterbury quite casually by a contractor working in my building who knows someone using Canterbury. I thought why not search for it. Came across the website, loved the concept and called them! Had a meeting with a representative of Canterbury on 24th July. Waiting to hear from him. Said he will get back to me by Friday, 31st!

    Seems everyone here has benefited from Canterbury system! I look forward to know how they can help me in my situation. Will keep the forum updated.
     
  5. nin9

    nin9 New Member

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    Hi There,

    Just writing to get some feedback about Canterbury Property Services. I am just getting started on looking at investment properties and got in touch with Canterbury. Their model seemed very interesting and they've asked for a face to face meeting to explain it further.

    Are you able to provide some details in terms of how your experience has been so far and the kind of properties they have sourced and if their properties fit their 10 point criteria as they explain on their website? (http://www.canterburyservices.com.au...10_point_.html)

    Are they any different from other buyers agencies or are they similar to others out there? They've specifically mentioned that they don't source properties but tailor it to each individual.They've also mentioned that they have a number of ways clients within a few years have up to 3000$ of passive income after being with Canterbury and a number of clients who earn a 20,000$ per month passive income.

    These numbers look very nice but I want to understand if it's the truth or just marketing.

    Thanks
     
  6. pdg

    pdg Member

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    Okay, so I previously posted my disappointment in my first year of property investment. I got my results back from my accountant showing a net loss of $6000.00 but to be fair, that was short of 3 months rent as our properties were only available in September, so probably would have ended up with net loss of 1000.00. As far as capitalised interest is concerned, I have changed my financial structure so that I maximise my tax deductions thus slowing down paying off my PPOR. As far as property prices are concerned, my first property had an independent bank valuation done after a year and came in at $10 000 more than it cost me through Canterbury which was a good result, however the second one came in a $20 000 less, so make of that what you will. The rent on both properties sits at 10.00/week less than they predicted and I have received rent subsidy on both when needed. My big issue with Canterbury is 1/ they are not fully transparent and never give you a professionally documented cash flow projection and 2/ The capitalised interest is never reflected in all their claims of wealth accumulation. The bare facts are that your portfolio in the short term grows by whatever you put into it, and believe me, this is not a set and forget and hope it all grows, it needs constant monitoring and your own financial input and hope you get the capital growth in the long term. Negative gearing ( and that is what this is) only benefits the investor through long term growth , nothing else.
     
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  7. VooDooRoo

    VooDooRoo New Member

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    Newbie here

    Hi pll

    Have just read 19 pages very interested contemplating organisng a meeting

    with Canterbury soon.

    There are a lot of silent (non members ) following this thread ,Like myself

    before, Thanks to all for your input both good and bad!

    V D R
     
  8. kochi

    kochi Member

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    Bank valuation

    My second property with CPS is under construction . After seeing pdg's comments, I spoke to the bank to see what their valuations came at . The banks valued both the properties at $17,000 lesser than what I paid . I believe that the banks are a bit conservative with their valuations but is it normal for such a huge variation ? Or do you feel I have paid too much ? Appreciate any thoughts
    Cheers
     
  9. pdg

    pdg Member

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    I think the valuations are okay because I am led to believe the banks work on about 5% below market value, so a property of 440 000 would come in at 418000 making it 22000 under your purchase price, perhaps someone else could comment
     
  10. kochi

    kochi Member

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    Thanks pdg & blueeye for your input . I thought the bank valuations were pretty conservative. The good thing is both the properties are under current median values and comparable property sale prices seem to be in the same range as what I paid. So overall I'm happy with the CPS properties.
     
  11. AjayT

    AjayT New Member

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    Chat with Banks Live

    Ok Guys , let shed some light...

    1. Ask your bank do they allow the interest repayment holiday on your investment property ( Unless you are in dire financial problem..) . Short answer will be no as when you do not repay even interest you are in default.
    They get you the interest only loans.
    2. Do a simple calculation for 2 property with 400,000 loan each and 5% interest rate for over 5 Years. After 3rd year you will see that the Loan on property which you are not paying any amount will start risisng so quickly that it wipes out all the benefit.
    3. ATO does not allow interest capitalisation on Investment property. What ATO is not concerned is what you do with your rent. You can spend your rent whichever way you want. That is what these guys tell you.

    Simple question if they do not make money why are they helping you. Not out of charity. The more loan amount you have more the commission they get. Scenarios here

    1. They have their own financial services arm managed by son of the owner of this scheme. So they get commission there like any other mortgage broker. and this commission is upto 0.20% of the total loan amount you have for the life of the loan.
    2. The construction co. is linked to them and that is how they make further money there.
    3. The rental company will charge you 8.5% whereas the normal other companies charge 5.5% so another difference there
    4. They they will ask you to borrow and buy shares further loan and further commission to them.
    5. They will provide you the land , again to save you from hassle, but when someone buys 20 blocks of land from a company you get a discount easy 15 to 20 K and also you get discount from the selling agent whose commission is about 15 K

    In this world there is nothing like a free coffee. If you are happy to pay someone 40 to 50 K more go ahead...

    You will never meet any real client and see their property , because it is against privacy but you only believe.....

    List can go on and on . Well enough said rest is upto you guys......
     
  12. pdg

    pdg Member

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    Canterbury

    I had to reply to this.
    1/ They earn broker's fees, well most people would go through a broker anyway
    2/They would earn commission from the builder due to the amount of work they do for Canterbury,the man in the street wouldn't attract this discount for a one off house
    3/The property managers are expensive,but the standard is 7.5 % but you are free to use a property manager of your choice, you are not forced to use their managers.
    4/Shares again are your choice, I chose not to.
    5/ As with the build, the average man in the street could not get discount on the land when buying one property.

    I think the point of my argument here is as you said it, they don't work for free, do you? The bottom line is that you are getting a property at market value, well I believe you are anyway. I also believe where the land is concerned they do pass on a discount to their clients because with both the properties I bought, I tried to find the same size block for less and couldn't,in fact in both cases, all advertised blocks were actual 10-20 000 more. I do think by finding your own builder though, you can save money, but to say they're selling property at 40-50 000 more, I don't think so.
     
  13. Locky__

    Locky__ Locky

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    QLD
    Info Please

    Hello guys i live in Brisbane and am in the process of deciding whether to use cantebury or not. Have had 2 meetings with them already. Does the capitilized interest get capped at any stage or does it just keep building. How have you found their service.I dont have alot of equity in my PPOR and will have to pay about 12k LMI to purchase a property with CPS. With this in mind how long realistically will i be able to buy a second investment to keep the ball rolling. Because it seems this whole process is only beneficial if you are aggressive and keep buying properties at a rate of about 1 per year. Any response would be greatly appreciated.

    Has anyone had any luck in trying to convince the team to use your own broker instead of theirs.
     
  14. AjayT

    AjayT New Member

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    Hi Locky , Please see the comments above in the thread and you will be enlightened....
     
  15. AjayT

    AjayT New Member

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    Canterbury Property Services..

    Hi Kochi,

    Its good that just by getting some positive comments on these threads you feel secured that you are going the right way. You do not know the person who is writing the comments is from Canterbury or a genuine investor.

    Would you believe rather going the Canterbury way I started my own and have gathered 6 properties in 5 years and all are now cash positive......

    I can understand the money you have invested and want some sort of consolation that it is safe.

    Do your own calculations on spreadsheet based on your property loans for 6 years and you will see the answer.

    1. Are you having an interest repayment holiday? if not then where will you get that extra cash to pay down the interest.
    2. Have you confirmed with ATO that you can capitalise interest, if not check for yourself.
    3. Have you met any of the Canterbury clients in person... try meeting them if you can
    3. Have you received a written guarantee in form of contact fro Canterbury about buying back your property, if not get it just a laminated piece of paper showing we will buy back your property will not stand in court...
    4. Canterbury also have scheme where when you introduce more clients you get a commission... did you say you were introduced by your work mate...


    Leave the hearse and check the facts for your self , but it is your money and choice how you spend it..........
     
  16. kochi

    kochi Member

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    Hi AjayT

    Its good to see you have a sizable portfolio. I follow this thread closely and I know that your first comment was deleted .

    You have made it clear that you have had some serious differences in opinion with them . Are you able to let us know the events that led to your relation turning sour with Canterbury ? That would give the legit members (genuine investors) a chance to take up the issues with Canterbury. This thread goes back 6 years , so I'm sure there will be a few legit members.

    To answer your questions

    1. My portfolio is in its early stage .I started with them in mid 2014 & my 2nd property is under construction. I don't have a PPOR. I started off with an investment property. So I don't have the need to capitalize the interest as yet.
    2. I have not checked with the ATO . But a simple google search will tell you that interest capitalization is a tool used by many industries. If you want to capitalise interest - that's fine. But you can only claim the portion of interest attributable to the initial (uncapitalised) debt.
    Besides if it was illegal , I don't think they would indirectly advertise it on their website and on their video.
    3. I was introduced via an existing client who is also a workmate. And the system seems to working fine for him.
    3. Nope I did not receive the resale guarantee in the form of a contract . Its just a piece of paper . But I had my accountant download sale prices for properties on the same street and I don't think I have paid too much at all .
    Infact both properties are sitting under median prices of their respective suburbs. So if Canterbury did not honor their word and I had to sell on my own, I should be able to get the amount I paid .
    4. I don't know if he received a commission and I don't see how this makes a difference . As long as my affairs are dealt in an ethical manner and I see positive growth in my portfolio.

    But as you have suggested I may double check with the ATO at some stage just to be clear .
    Hope u will post back with the issues you faced. It would be a big help and I'm sure a lot of members will want to know.

    Cheers
     
  17. VooDooRoo

    VooDooRoo New Member

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    South West Rocks
    Hi

    We have just had our 1st interview with Canterbury and have been advised out 1st investment house would be around the $450,000 mark..

    Sounds nice, But being a person from NSW what type of property would that get me in QLD?

    I know area plays a part in it...

    What are some areas of your properties in? So i can Google earth the area and see some of the houses and get a picture of surrounds.


    Regards
    V D R
     
  18. kochi

    kochi Member

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    Some earlier posts mention Griffin , coomera .
    Mine are in Pimpama & Springfield Lakes
     
  19. pdg

    pdg Member

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    Two more questions , how much has your overall loan including capitalized interest, been reduced by and how much of that reduction is as a result of your own savings towards the investment? You see, what I'm getting at is, what's the need for their guarantee in the event of job loss when you're so far down the road, this is one of the greatest issues with negative gearing, you need the job to get the tax rebates to finance the shortfall of negative gearing, take away the job and the whole process falls over. So I guess what I'm warning people looking at this is, you need a good amount of financial input and strict self discipline with regards to saving and building up a good buffer account. Apart from that,it does work, but if you think it's a process that finances itself, think again.
     
  20. AjayT

    AjayT New Member

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    Hello all the the Supporters and skeptical of the Canterbury Property Services. Thought some advise from ATO will be helpful. Good to be informed properly.

    "Host

    And be careful of more complicated loan and repayment arrangements, especially if they?re marketed as allowing you to claim additional deductions. These loans typically involve a line of credit or split loan and are designed to allow you to pay off your home loan faster while deferring payments on your rental property loan.

    The ATO may disallow your deductions so it?s best to seek advice or contact the ATO. Remember, if it sounds too good to be true, it probably is.

    If it all sounds a bit tricky, or if you have difficulty calculating your interest deduction, my best suggestion would be to contact your tax adviser or the ATO.

    If you?d like to find out more and to watch other videos in the series go to ato.gov.au/rental"


    follow the link

    https://www.ato.gov.au/general/prop...d-interest-expenses-for-your-rental-property/

    It is just like people who are rational and follow the mind and herds who follow the preacher........
     
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