The Infinity Group

My wife and I went to visit Infinity Group Australia at Bella Vista offering a 7” tablet ($30 approx) promoting building wealth. Infinity is part of a group of QLD developers. The session resulted in an home visit where they reviewed our financial situation and suitability as an investors. From the home visit we agreed to attend a final session in their office. At this we were asked to invest in a property in Rockhampton, Queensland. This including more number crunching/more promotion re the property and security for retirement, highlighting any superannuation issues etc.nIt started with a finance company providing the investment figures and projected costs, rent, capital gains etc. It was high pressure selling try to get us to sign up on the day to the investment property. It included a 7 day cooling off period if we did not want to go ahead. However they attempted to obtain a $1545 deposit and get signatures to start the investment processes, We were advised that we may not get some of the deposit back if we pulled out during the cool off period.nWe then spoke to Graeme Holm . He took us through how conduct research and purchase high potential/growth property (with a potential to get about 7% capital growth) and high supply/demand. We were advised of the location/land and house offer. My wife and I ultimately left without signing advising we wanted to conduct Due Diligence on the Offer and Company. I have to say on the surface the offer and the way it was presented seemed pretty good with little work for the investor??nnThe location was in Rockhampton or if we wanted Yapoon QLD. The block offered was about 5 minutes from the beach, land =670 sq m, House = 167 sq m – 4 bedroom, 2 bathroom, 2 car enclosed garage, outdoor patio/alfresco. House is cyclone specked has all chattels fitted, tiled, carpeted and painted, landscaped all ready and designed to attract and move in tenants. The house/land was 390K all up approx. The land was $164k, the house 226k. The total loan quoted was $414000.nnInfinity Group Australia seem to target investors who have paid their principle residence off (or have the funds) to invest in a property with a QLD developer. They minimise investor involvement in the setup of loans, tax adjustments, legal work, Conveyancing, managing tenants, insurance etc with little initial out of pocket outlay for the investor –all covered by the loan and any security (about 20% of the loan) which is generally covered by or via loan over part of a part of the principal residence.nnThe Income- The rent quoted was based on minimum of $420 pw (rented for 48 weeks pa). After tax reductions-variations, rental income and other expenses the initial per week out pocket to me was quoted as $68 pw. Reducing to nil after 3 years. They calculated the loan would paid off in 8 years via an offset account and the funds I had going into it.nnWe called a local agent and have found out that the properties are worth $280,000 MAX and the rent is only $280 a week. Do you research everyone.