Forum Replies Created
Hi @hayzherdman – I have a close friend who has done all of M.Y. program plus used Buyer’s Agents over several yrs and is happy with the service, so I have no scary scam story to tell. But please be aware he is highly focussed on inner city markets. He tends to (from my outside observation) focus high income clients to low risk units in inner ring and for those who can afford the high prices do small developments in inner areas of capital cities. If you want a Buyers Agent in those markets you could do worse, but don’t expect his staff to be open to regional property. Not focused on high cashflow or creative strategies that Steve McKnight would advocate as mentioned by Benny. M.Y. Does a lot of work on wealth mindset apparently which is also good but can be achieved elsewhere it depends if you need that or not. Hope that helps.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Sorry Arthur I wasn’t trying to be rude but if you read my first paragraph I was actually trying to explain the approximate code we property professionals on the forum try to stick by, given it is an investor forum, and encourage you to become a part of things here. With your 20 yrs experience I think you would have heaps to offer the forum. No one is perfect and I have made plenty of posts that I would consider mistakes over the yrs but the beauty of the forum is that it “self corrects” meaning I have had advice over the yrs from others too when posting something outside the line. All the best to your venture.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
As discussed above there are lots of variable, however in general terms I agree with @dtraeger that 5% is a fairly safe number to model with. If you timeframe is long and your properties are spread around the nation in decent urban areas should be ok. In short bursts individual properties can do much better or much worse. It all depends on where in the cycle and what specifically you are buying.
If you are writing that plan at 32 and stick to it well done not many do this. Start with the best affordable properties you can get with value add potential and once you get some equity spread it around into several markets for safety. If you have evergy and learn skills like renovation/development you can accelerate your returns. Best of luck!
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Arthur you should know this is an investors forum that values membership contribution. Those of us who own related businesses contribute our advice and expertise free of charge over years not months weeks or days because we are investors ourselves and value the conversation plus as a way to give back in a small way. In return those that like what they see get to “try before they buy” and have a better sense of our business style and so some end up becoming customers.
This is not in any way the kind of place where we buy or sell leads. It is not a place where we would sell our database of existing customers to spam email firms or others looking to co-opt a valid list. My limited understanding of Australian law ( @terryw can correct me) is that this would not be legal.
(this assumption is based upon your post over in buy swap sell https://www.propertyinvesting.com/topic/5023764-wanted-old-opted-in-data-bases-to-be-refeshed/) I would never personally sell my list, and I imagine the others here would not either as our clients signed up in good faith not expecting to be spammed by someone else.
All the best with your search for lists/leads but I imaging you would do better trying to find a paid source and there are plenty of marketing firms who can help you for a fee.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Supply and demand is going to guide end prices. If there is continual supply of cheap land then the only gains are from construction costs rising. I would rather target limited supply locations (more commonly established areas) close to big ticket drawcard items that people want to be close to like train stations, beach, etc. Regular resale of new built homes will attract income tax too, better to buy and hold income producing investments for period of time to get 50% exemption on cgt.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Update: I have had confirmation from Pricefinder and the old group manager that I will be taking this on. I have been sent the service agreement and will be onboarding members from now onwards. If any existing or new members want to know more please PM or email me. Thanks.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
This is old but a start to your google based research
http://somersoft.com/forums/showthread.php?t=34051
and from right here
https://www.propertyinvesting.com/topic/4410828-has-anyone-dealt-with-the-spring-financial-group-or-awa/Any property marketing firm – if it takes commissions from builders/developers, in my humble opinion is working for THEM, not you. You are not the client, they are. Their job is to sell stock for their client. Not pick the best property for you necessarily. Think about that.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
^^ what he said. Added to capital base for reduction of future cg like stamp duty.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
If the only tips your financial planner gave you was to buy property and to make it new build then he clearly isn’t much of a help in real estate is he?
I don’t believe people should buy new or build themselves unless they understand what they are doing and why. Building is time consuming and expensive and risky unless you totally know and trust the builder. Not saying it cant work just that it adds a layer of risk.
Buying established property is far safer for 4/5 people.
Before you even decide on new vs old you should decide WHY you are doing this – you have said its for retirement. TICK. Second decide what your long term goals are. You said 10-20 yrs that is a big difference lets narrow that down to a more concrete number. Once you done that you should decide on what income you want to be generating and how property fits into that. Remember property has costs like insurance, rates etc so your gross rental figure is not what will be left each yr when you are living on it. Once you know the desired income then you work out roughly how many properties you will need generating x amount of rent each. This will guide your purchasing strategy, whether it is new builds, renovations, buy and hold, etc etc.
The extra thinking and education at this end will save you years of pain later, so stick with it.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
PS @benny and mods I assume this is ok but if not please delete. I have been getting emails and PM’s about this group as some members are quite anxious about it closing so I thought it best to make it public.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
+1 depreciator are really good.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Thanks for the response DK. I was leaning towards the first option as well. I do want to build a large portfolio but since i’m still a newbie at property investing and i wanted to play it safe which is to keep the deposit at 20% of every property i buy. I was speaking to my broker and he did suggest to borrow 90% and purchase another IP but doing the numbers i think it is better to stick to borrowing 80% for now and once i get the hang of it might make that decision to borrow more. My goal for the year is purchasing 3 IP that are positively geared with only borrowing of 80% of the value. :) End goal would be to be financially free, buy family home, travel with the family without worrying about expenses etc (20 years to achieve).
BTW. These forums have helped me with some research for the 2 property i’ve chosen as options so thanks everyone.
Thanks,JTGreat set of goals. Nothing wrong with 20% deposits but give your stated aims of 3 in year 1 you will need a really good income to save the next 2 deposits in a short space of time. So I can’t see how you will hit your goal unless you go to a 90% lend and preserve some cash. 2 IP’s now and saving 1 extra deposit is way easier than saving another 2 in a calendar yr. Perhaps if you are dead set on 20% deposits then re adjust the goal to 2 for the yr?
It would be worth talking to one of the good brokers here such as Corey or Jamie as they are wizards with setting it up for future purchases and possibly a good property savvy accountant if needed but FYI my first 3 IP’s I used LMI for, after that they say no anyway but you don’t need it when you have plenty of equity, so I rekon might as well use it a stretch that valuable cash as far as it can go (as well as preserving buffers for safety) in the early days especially if your income is good and you have no debt the risks are smaller. If you are spending everything you earn and have an expensive lifestyle, 12 children etc etc then please be cautious and don’t take any silly risks as the extra debt will hurt. If you are single and cashed up in low risk position I think that is the time to accelerate. Buffers provide the extra safety even in this situation.
Re the property – I would choose based on the potential short term gain either with or without reno, as in the next 2 yrs you are likely to want to draw the initial equity gain to buy more property. This will speed up your retirement plan. I don’t know much about the properties so can’t comment which is better other than that.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Terrible investments – highly restricted lending available which flows onto limited growth etc. The only people who generally make money out of retirement villages are the managers of the sites.
…and the land developers who got the approval and added all that value. Otherwise no not me either.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Congrats on where you are at! Good starting point for sure. You need a big picutre goal, one you really believe in, then you need a good strategy. Each property should fit into that and be purchased in the right order so your equity and cash flow position are as strong as possible. Some might involve value adding like renos, or development/building such as you have done or just buy and hold. Along the way I would get some some good accounting and loan advice before choosing the structure and debt levels on the new IP. Talk to a good broker at least, like some of the regulars on this forum who are great, or if you have one a good property accountant. Paying down the wrong loans and properties in the wrong order will impact your tax badly and slow you down.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Agreed, completely ignored all of the fundamentals of 99% of the oz market. Untrue from start to finish.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
In this case the loan set up may suit turning it into IP. Is it fixed interest only or fixed P+I? Either way there is not that much profit in selling so perhaps worth considering keeping it as you say. The infrastructure project development for your area sounds positive but FYI the growth rate of 15% was in 2013 not sure if there is evidence this is currently happening in the market right now. SQM has rising listings and vacancy rates for your area so I would expect a slower softer short term growth picture, not saying you should sell, just take a long term view. You have mentioned buying more and paying down debt. Both are good but at a certain point you will need to choose between putting your extra savings into deposits or into debt reduction. This can change from yr to yr but it is difficult on limited cashflow to do both simultaneously. All the best with it.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
God advice from Corey, and if considering a BA, FYI we are used to working with away clients, I have had plenty. It is not a problem as long as we can do postage of original contracts when required. Scanning and email takes care of the rest. Where are you looking? There are a few good BA’s on the forums. A typical client of mine will engage the service, look at the research and photos/videos I send them and decide on the strength of that more than half haven’t been inside before settlement.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
I agree, user experience is paramount. I lack the visual design skills to make the UI beautiful, but I try to keep it simple.
Domain and realestate.com.au are not willing to share their listings, so I’ll have to approach the agencies. I’m hoping that most agencies won’t mind sharing their listings.You are on the right track but try and get someone who is skilled in design to help you, even if overseas via upwork or fiverr etc. Not surprised that the big ones won’t share but there are about 30 smaller ones that might, otherwise as you said you really need a systemised way for attracting the agencies. Best of luck!
-
This reply was modified 8 years, 2 months ago by
BuyersAgent.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Thanks for the replies. Another reason why this strategy would be good for me is that I often do a few years of contract work then have a few months break between new contracts. Having little time to look whilst I’m working means those few month off are a great time to find new investments, but by being between contracts I would have to use my own funds. Thanks
Understood. It is also possible to get help with the buying part ;)
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Many people find negotiation confronting and difficult, but here’s a tip to remember: be sure to ask for something you don’t want, so you can then concede it later on for something you do want.
Here’s an example, recently I made an offer for a house. The asking price was $350,000, and I offered $330,000 including all the furniture. I didn’t actually want the furniture, but later on I conceded the furniture if they would accept my price. If I hadn’t asked for the furniture then it would have left me little wriggle room on price.
You could ask for anything… the house to be painted, some repair done, longer settlement, owner finance. It doesn’t really matter because if you get it then it’s a bonus and you are only asking to toss something else back into the deal pot to make your ideal price and terms more achievable.
Cheers,
– SteveGreat food for thought @stevemcknight. Do you have a position on the benefits of this approach compared to a strong offer like a low cash offer or a faster settlement and bigger deposit. I was talking to someone today about a property purchased a solid 15% under market purely because there were no conditions and a really fast settlement. I oscillate between a range of approaches depending what each client of mine needs but it is fun to study the negotiation phase neutrally for possible changes I might make. I am wondering if in a flat market with less competition your strategy of many requests to give back later could work, but in a hot market it may mean getting disregarded by agents as “its just too hard”?
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
-
This reply was modified 8 years, 2 months ago by
