Martin DCX1EMember@martin-dcx1eJoin Date: 2010Post Count: 4
I'm new when it comes to looking for IP and am yet to purchase my first property. I've spent the last few months doing a lot of research and am now in the process of looking for a property. I'm based in Sydney and unfortunately don't have a lot of time to physically look at properties and do all the research.
I'm wondering whether any of you have used the services of Buyers agents (e.g. Capital 360, Properybuyer.com.au etc? If so do you recommend their services? I'm aware that they have high costs up to 2.5% of the property value. However, if I'm looking to invest outside of NSW I'm struggling to see how else I'm going to obtain some solid impartial advice. From reading the testimonials on their websites makes it sounds too good to be true!? However, I'm a little cautious in believing everything I read!
Any advice would be much appriciated.
JCatalystParticipant@catalystJoin Date: 2008Post Count: 1,404
I think if you are time poor it can be a good investment.
Researching an area can take months, and that's before you even look at a place. Buyers agents have expertise in certain areas.
BUT be careful. I'd go with a small individual person rather than a big company. Also go for one with a fixed price. What's the incentive for them to get the property cheaper?
You need to decide what type of property you want eg high growth area, CF+, reno required, under market (a must for me). I'd want the property to be under market. This in itself pays for the BA.
Look at http://www.somersoft.com/forums/ There are a few well recommended BA's on there.Graeme FreerParticipant@freerenterpriseJoin Date: 2008Post Count: 47
As A Buyer's Agent I offer Flexible Payment options:a) 1% of property price negotiated (industry standard ranges between 2 and 3%) OR
b) 20% of discount negotiated off (verified) list price OR
c) Flat fee of $5,000 for properties with list price up to $500,000 (includes $500 upfront amount, with the balance only payable on satisfaction/settlement of approved property )
EXAMPLE: let's say a suitable home/investment is found which is listed at $500,000 and this is confirmed as market value by analysis of comparable properties in the given location. Price negotiated might be $450,000. Based on above, scenarios…
a) Freer Property and Finance (FPF) fee for service would be $5000 including $500 'upfront' fee . Client saves $45,000
b) FP&F fee for service would be $10,000 (includes $500 'upfront' fee) . Client saves $40,000. Discount/saving could well be greater here with 20% Buyers' Agent incentive and for every dollar we make our client saves FOUR. Discount depends on market conditions.
c) FP&F fee for service would be $5,000 (includes $500 'upfront' fee) . Client saves $45,000
Graeme Freer 0414816408
Freer Property and FinancenbpattersonMember@nbpattersonJoin Date: 2010Post Count: 1
I have personally used a Buyers agent for two IPs.
For the first, we had a budget of $500k and we asked them to source us a good investment. They advised us that the at the time the best bang for the buck came out of a $370k property – that was five years ago and it was great advice (we paid on a % of purchase price, so there are honest ones out there – after all, they rely on referral business for their next client).
The second IP they helped purchase was a holiday unit in a coastal town. We had selected the property and needed their expertise in closing the deal so we would not get guzumped. They saved us $35k on the purchase price and the service cost us $5k – this was a fixed price agreement. Again, a great service.
If you are time poor and feeling stressed over the whole IP thing, then a buyers agent is a great idea. But make sure you “feel” comfortable with the person you are dealing with. Trust your gut instinct, but do not be afraid of the concept itself.
The guys I used were Buyers Agents for Real Estate – Brendan & Anne Jack, +61 418 882 222. I highly recommend them.jacqui_03Member@jacqui_03Join Date: 2010Post Count: 142
Where abouts are you located? Do you source properties Australia wide or just certain areas?
JacquiGraeme FreerParticipant@freerenterpriseJoin Date: 2008Post Count: 47
Based in Newport , however sourcing well researched investments all over Australia. Countercyclical strategy preferred eg recommended Perth in 2004/05. Melbourne and Darwin 2005/06. Canberra and Adelaide in 2007/08. Last year I started working as a Buyers Agent and looked for property wherever clients told me to. Best opps currently Auckland, Sydney and Brisbane. My family are from Wagga and always happy to consider regional investments for yield (not so good on capital growth over long term). Call me on 02 99732367 or SMS me 0414816408.QLDpropertybuyerMember@qldpropertybuyerJoin Date: 2010Post Count: 3
I own Hot Property Specialists Buyers Agency here in Queensland, We are truly independent, professional and very passionate about representing Property Buyers in South East Queensland, which includes from Gladstone down to Bundaberg and Bargara Beach the following the coast line down to the Sunshine Coast, Brisbane down to the Gold Coast and out to Ipswich and all area in between and other areas by negotiations.Here are a few points for you, when choosing your Buyer Agent in any State.
1. Only use a member of REBAA: The Real Estate Buyers' Agents Association of Australia.
2. A fixed fee structure which is discussed and confirmed upfront.
3. Ask about their insurances?
4. Ask to see the appointment paper work first, this way you can read it before making a decision.
5. Most importantly you must speak with them to ensure you have a connection with the buyers agent which will be working with you.
I hope this helps.Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
I haven't used one before but can definately see the benefits in their services. Propertunity, who's on this forum, is an extremely knowledgeable BA.sukumdoMember@sukumdoJoin Date: 2010Post Count: 1
It is good to use agent to buy property because you will have more options to buy or rent. That's why i recommend real estate agents.
Thanks,Roberts1911Participant@roberts1911Join Date: 2010Post Count: 32
Hey Martin great to hear your looking at investing outside your postcode like 90% of Australians dont do. In regards to purchasing outside your area i.e even in another state Maragaret Lomas is a major player in the property market with 30+ properties she has a company called destiny financial solutions and has a few books, one of which is a book called 21 must ask questions for every property invester it is a great read and deals with issues such as yours. I highly recommend her book and if you where to spend the $25 on the book first before you dish out your money. (a) you will ome money (b) wouldnt it be much more of an achieveiment doing verything yourself and (c) i will guaranteee you will learn a lot from her lessons. Shes not one of the same old property investing gurus with the same wish washy real estate rubbish. Good luck with it