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Over 5,000 Investors Bought from Chris - WHY?

So why did over 5,000 people Invest in Real Estate using Chris' business?

Now once you consider that they were not doing things like the other agents and the other agents were attacking him being supported by the Newspapers, rather vigilantly I must say. The question is why?

What it came down to is this - Chris' properties were in the fastest growing region in Australia as a starter, which meant finding tenants, was easy. The second and probably more compelling reason was that although they could have found a cheaper property using the real estate agents, the properties from the agents are just not great investment properties, they may be great to live in though. Would you rather have

  1. A home purchased at $120,000 costing $150 per week
  2. A home purchased for $150,000 costing $20 per week

Now please also realise that if the $120,000 home would also make $30,000 less than the $150,000 property if they both doubled in value over 10-years. The answer is easy and the Real Estate Agents need to learn how to sell investment properties rather than trying to ram an exclusive agency down an investors throat, they are not selling it because it is an investment property, but because they have an Exclusive Agency. What happened to a Fiduciary responsibility? 

The real issue is that purchase price is only one of the metrics we need to look at for investment properties. The Newspapers used Valuers, of questionable accuracy and integrity such as Mr Herriot, which the Federal Court highlighted his accuracy, to show that people could buy properties cheaper through the local agents. Which it may be just a coincidence, but they just happened to use the Newspapers to advertise in, but maybe I am just cynical.

Anyway here is the real reason, even if they bought the property cheaper that was irrelevant. Because not only is an older property going to have more maintenance, harder to rent, get a lower rent and have less tax deductions it costs more each week from the Investors pocket. Most people quickly realised that an Extra $100 per week was not only unaffordable, but after 4 years that was $20,000 extra and after 10 years you would be now $60,000 worse off – that is the real reason they bought off Chris. In fact it could easily be $200 per week or $10,000 per year more, which is $100,000 extra over 10-years. 

So what happened to the properties that were only costing $20 per week?

All of them more than doubled in Value!!