February 3, 2022

AllianceCorp: Our Complete Overview

AllianceCorp: Our Complete Overview

If you’re looking for someone to help you secure an investment property, you’re really spoiled for choice. There is now a wide range of companies offering everything from investor education programs to buyer’s agent and portfolio planning services. Here we take a look at one of the consultancies – AllianceCorp.

What is AllianceCorp?

Founded in 2008, AllianceCorp is one of the larger property investment firms. Based in Melbourne, their team of over 30 specialise in property research and acquisition, wealth planning, and cashflow management. They also have a property development division, manage a syndication program, and support those building a house to investn in.

Given the wide range of services they provide, AllianceCorp understandably markets itself as a full-service property investment consultancy. This means they can help their clients through every step of the investment process, from initial planning to ongoing management. And it’s that last part that they’re particularly proud of, claiming that their post-purchase service is unique to AllianceCorp.

How do you invest with AllianceCorp?

Investing with AllianceCorp is much like working with any other buyer’s advocate. The process starts with an initial consultation, during which they will get to know your financial situation and investment goals. They will also begin working on a tailored strategy, including plans for securing any additional finance you may require.

Once you have a plan in place and have been qualified by one of their mortgage brokers, the AllianceCorp team will start showing you possible property to invest in. In doing this, they usually focus on house and land packages and new build properties, though will also consider existing properties. Based on this, they will recommend what they believe isthe best investment opportunity for you and your goals.

If you are happy to proceed, they will start the process to the purchase the property. This includes referring you to their conveyancers to do all the legal checks.

All going well, you will secure the property and AllianceCorp will support you through the building and handover process. Once it’s complete, they will also help you getthe property listed for rent, including connecting you with a property manager.

How much does the AllianceCorp service cost?

There are a few key fees you can expectto pay when working with AllianceCorp:

  • Registration fee: If you choose to proceed past the free initial consultation, you will need to pay $200 to start using their services. This covers the additional meetings required to finalise your investment plan and begin working on your first investment.

  • Annual membership fee: f you choose to sign up to AllianceCorp’s “lifetime membership” program, it will cost you upwards of $2,000 each year. For this price, you will get their ongoing support and access to their full investor mentoring and education services.
  • Developer commissions: A fee will be received for each property you purchase through AllianceCorp. The exact amount will depend on the property’s purchase price.

  • Due diligence costs: While AllianceCorp will manage due diligence for you, you will need to pay for any additional professional services required. For example, you will be responsible for the cost of any legal reviews or building and pest inspections completed.

How does AllianceCorp compare to Investn?

At the highest level, AllianceCorp andI nvestn share a mission. Both companies are committed to making property investment more accessible to a wider range of people. Both companies also have a focus on helping investors develop the knowledge and skills they need to succeed.

That said, their actual approach to achieving these goals, and the investor experience they provide, is quite different. Specifically, they vary differ on the:

  • Capital investment required: As AllianceCorp uses a fairly traditional approach to purchasing properties, investors will usually require a significant deposit to get started. Depending on the property and their financing options, this could be upwards of $100,000. We’ve been advised that they also have an Express Program, which investors can access with as little as $10,000 – but this is not widely promoted. By contrast, using Investn’s unique co-investment model, By contrast, Investn’s unique co-investment model, you can acquire your next investment property with as little as $15,000.

  • Diversity of properties: When presenting investment opportunities, AllianceCorp generally focuses on the capital growth potential of new builds and house and land packages. If it suits their investment strategy, they will also assist clients to acquire established properties, providing standard buyer’s advocate services. At Investn, we often recommend new homes, but will also present established homes, particularly for second and third purchases (and beyond).

  • Fee structures: AllianceCorp takes great pride in its full-service offering, which clients need to pay a significant annual membership fee to access. They also sell off-the-plan properties (at no extra fee) and provide buyers advocate services for existing properties (at fairly standard rates). This is quite different to Investn, as we retain a 10% share in all properties but don’t charge upfront or ongoing fees.

Based on these points, we believe Investn is better value for anyone looking to either start investing in property or adding to their property portfolio. For more information on our services and how we can help you get into the market, contact us on 1300 446 445.

Please note: All details provided here have been obtained from publicly available information (e.g. AllianceCorp’s website). Investn takes no responsibility for its accuracy or completeness. We always recommend doing your own research and consulting an independent financial adviser when consider whether a property investment program will work for you.

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