Hi,
Being really new to the whole world of real estate and investing, I am busy reading everything and studying hard.
My aim is to purchase cash flow positive property and wonder as the “new kid on the block” whether I should get help from a company/buying agent or to go it alone.
Wondered what peoples thoughts were, the pros and cons and how would you find a company that you could work well with.
Thanks [blush2]
any real estate agent can act on your behalf as a buyers agent. there are a few places that specialise in it now though – but they charge reasonably hefty up front fees. They do this because they are all too well aware that many buyers often can’t commit to actually signing on the dotted line, so it covers them for their time and effort. It’s easy to make a mistake when buying property, especially if your new to it. is it worth paying a buyers agent? tough question – I think it depends how much effort you can put into it. If you do enough of the hard yakka yourself (talking to agents, establishing true values, clauses you should have in your offer and so on) you should be able to do it. Real estate laws are pretty heavily skewed to buyers in any event. Either that or take the cost on the chin on your first deal and soak up all the knowledge… it could be a good education.
Extensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Hi Sherry,
It was so freaky seeing your thread, as I was only just last night talking to someone (from this site actually) about the possibility of engaging the services of a buyer’s agent.
I personally have never made use of a buyer’s agent, however I would imagine the BA would be an extremely worthwhile person to have on side, especially if your time is limited and as such you are unable to do the “running around” yourself. Furthermore, as others have stated, it may also prove very cost effetive if the BA can negotiate a better price on your behalf.
I didn’t get a chance to ask the question; however if there is anyone who can clarify for me, I would greatly appreciate knowing…..Are the fees charged by the BA tax deductible if the property purchased is for investment purposes?
Many thanks in anticipation,
Cheers,
Jo
My views…
A buyer’s agent is a convenience certainly. But there are two main reasons to avoid using them if possible.
1) You don’t gain anywhere near as much experience in finding the investment. The whole process of looking is very educational especially when starting out. In the long run using a BA is a shortcut that will cost you valuable lessons.
2) Call me cynical but you probably aren’t going to be offered the best deals. If they were great deals the BA would find a way to purchase himself or offered to a closer associate, family member etc. You are likely to be getting ‘hand-me-downs’
On the other hand if someone offered me a deal that I liked (i.e. passed whatever investing criteria I have) then I would have no problem contributing the finders fee. Nor would I balk at offering any deals I find that I have no personal use for to others.
I would imagine most people who use BA’s are those who are short on time, so if you have it I think it’s better to go look under some rocks yourself…
Ben [buz2]
I believe a property agents fees are not deductible against income as its of a capital nature.
So its an acqusition cost and deducted from the selling price when working out your capital gain/loss.
Hi all
Buyers agent are extremely helpful for three reasons:
1. Negotiating – they save you money by helping you remove the emotion from the deal and they should have considerable experience in dealing with selling agents.
2. Time – Full time workers may get to look at say 5 properties on a weekend, whereas a buyers agent can look at 50 or more during the week. They also should be able to access the so called “silent sales” that never get advertised.
3. Stress – Buying property is the most expensive purchase most people make and can be a very stressful experience. A good buyers agent should help deflect all the stress and get the best result possible. By law they only act for one party in the transaction and that is you as the buyer.If you haven’t already guessed I am a buyers’ agent based in Sydney and source property for clients throughout NSW and QLD. Check out my website for more details.
My fees are very competitive and come with a money back guarantee.
In regard to fees, yes they are tax deductible against the cost base of the property when you sell.
Regards
Rich
propertybuyer
save money, time & stress
0402 267 703
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