Began franchising: 2004
Number of franchises and licensees: Nine with three pending.
Investment required: Franchise $105,000 up front plus GST, license: $24,000 plus GST up front then $2000 + GST per month.
Aviate
real estate and property franchise provides direct access to well-researched residential property investments. Only properties which meet Aviate's strict 32 point selection criteria are offered to investors and these are priced at or below independent bank valuation.
Aviate
financial services franchise provides direct access to well-researched residential property investments. Only properties which meet Aviate's strict 32 point selection criteria are offered to investors and these are priced at or below independent bank valuation.
The properties are released through an alliance network of industry-related professionals including financial planners, financiers, accountants and various corporate avenues. According to Managing Director Neil Smoli, franchising was a natural progression.
"A franchisee's role is to build a network of qualified clients and establish rapport and trust while helping investors to achieve their investment property goals," he says. "Head office takes care of all of the traditional agent's responsibilities such as vendor negotiation, completing authorities, contract administration, settlement assistance and the like so that our franchisees and licensees don't get swamped by paperwork and can focus on building their business."
Franchisees, who require a current real estate license, either have existing networks within the framework of their business or contacts within the industry that will enable to them to build networks.
"We also look for an understanding of investment property, though we can train people if we feel their interpersonal skills and networks are strong enough," says Smoli. "We have industry-wide professionals ready to provide any assistance the investor may require with legal matters, conveyancing, finance and more. To mitigate conflicts of interest, we don't take any kind of rebate from the service providers presented."
An Aviate
property investment franchise costs $105,000 up front plus GST for a term of five years plus a territory. For people who don't want to be locked into a fixed term Aviate also offers a licensing arrangement.
"The licensing model is a bit more relaxed," says Smoli. "It costs $24,000 plus GST up front then $2000 plus GST per month. There's no specific territory and, if the licensee wants out at any time, we just ask for 90 days notice. However, franchisees benefit from any business written from within their territory."
Smoli has no problem with the current market.
"It's a buyer's market so vendors become more realistic," he says. "There's less noise, so we can negotiate better terms. Investing in property is not about timing the market,but time in the market and there are always investors who want to invest for the long term regardless of what the market is doing. Their attitude is 'this is a unique property, they don't come on to the market that often, let's buy it"'.
13-Oct-2008