Hi, I'm new to property investing and in the first stages of trying to find my first residential investment property. I have been reading a few books, looking at the property market (online mostly) and trying to make a decision on whether to use a buyers advocate or similar. Today I spoke with a 'buyers advocate' (Gwen Cahill). She buys new (turn key) investment properties and ensures me she sources these in the best upcoming suburbs around Australia. She seemed genuine but I can't help being skeptical of everyone that I meet. I can't help but think the developer is making buckets and the buyers advocate is getting a kickback (which she is how she gets paid) Because these are new properties she said that you'd settle on the land first but borrrow the first 6months worth of interest payments (using an essI/O loan) so the repayments aren't coming out of my pocket. Is this something that an experienced investor would do? Seems at little stupid to me, but again I'm new to this "game".
I guess any general comments about using so called experts or just using my own research would be very helpful at this stage. Thanks.Hi Lila
Welcome to the forum.
I'd be skeptical as well. To me, someone that's selling new properties is a glorified real estate agent rather than an independent buyers agent.
If you're considering using a buyers agent, hone in on a particular area where you'd like to invest and then engage a good BA in that location. Check that they're accredited with the industry body – http://www.rebaa.com.au/
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie, I think your suggestion is the best option as I want to do as much of the research myself.
yeah watch out for people giving you "advice" especially when you're starting out – i agree that they're probbly a real estate agent with a different title
Everybody is looking out for their own interests, and their own bank account balance. It is important to remember that. Very few people remain in the world that are happy to be honest about how an investment will impact you – even if it means they lose out on a sale. It is for this reason you need to be sure in your mind of what you are doing because you have done your own research. It's no use crying and blaming others if you buy something that turns out to be a bad investment for you. Buyers Agents certainly have their place, and often hear about good deals that never get advertised on the real estate websites. But to blindly buy something just because somebody tells you to, without looking into it and being sure in your own mind that it's a good idea is fraught with danger.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
She is a real estate agent. I had decided before I met with her that it was not a good idea as I had done some more reading inbetween making the appt and the actual appt. I was going to cancel but in the end decided as long as I promised myself NOT to sign ANYTHING I would meet with her as it might give me a bigger insight into what 'method' these types of developers/real estate agents use. When I asked her if I found a property myself but wanted her to help with the negoiations she looked horrified. I also recognised that she kept trying to sell by impressing me with floorplans, glossy photos and a/c, stainless steel appliances etc.
@jacm good advice, I would never buy anything without doing the appropriate research (even my compact camera had hours of research done on it!!!) but I guess I it would be nice to have an honest mentor to use in addition to my research. I guess rather than someone leading me blindly I would like someone who I could use as a sounding board when I find what I want to buy (this is extra important as I'm doing this by myself ie. I'm single). I would also like someone to do the negoiations for me as I've only ever built houses not bought already established.
I will just have to use the forum as my last little bit of encouragement, also looking into using Nathan Birch due to the many recommendations I've had from the forum.
Thanks everyoneSpeak to as many people as possible. You don’t have to follow the advice of every single person but by talking to people you get a better idea of what you are comfortable with and how you should go about your own business.
Aaron_C wrote:Speak to as many people as possible. You don't have to follow the advice of every single person but by talking to people you get a better idea of what you are comfortable with and how you should go about your own business.Good comment this one – some people are afraid to ask questions to different people for fear of being 'sold' something. Having conversations as per Aaron's comment does help the knowledge bank grow much faster and in a more rounded way. This, in turn, can help reveal inadequacies in a salespersons 'pitch'
You're on the right track – keep asking questions and read, read, read everything you can! There's several investment property magazines out every month which have dozens of investor profiles, strategies, Q&As etc which can be a good starting point as well as all the post on this forum and others.
Good luck!
Aaron_C wrote:Speak to as many people as possible. You don't have to follow the advice of every single person but by talking to people you get a better idea of what you are comfortable with and how you should go about your own business.Great advice! Some people will have some ideas you like and some you don't. Pick and choose from everyone's ideas and assemble a set of ideas you are comfortable with
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Thanks everyone
. David4000 I'm already onto the mags too, buying API but thinking the library might have some of the other mags to keep expenses down. I'm also looking for my next book, maybe another margaret lomas one? I'll have to take a look at the recommended reading list on the forum more closely. I'm getting really excited about my first purchase now Hey lila where are you based?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
lila77 wrote:I'm also looking for my next book, maybe another margaret lomas one?Have you read the 20 Must Ask questions book? I thought that was a pretty good one.
Scope out ebay for second hand investing books. There's usually a few bargains to be found.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
JacM wrote:Hey lila where are you based?Adelaide – looking to invest anywhere in Australia though.
Jamie M wrote:Have you read the 20 Must Ask questions book? I thought that was a pretty good one.Scope out ebay for second hand investing books. There's usually a few bargains to be found.
Yep read that one, I thought it was very informative.
I like e-bay for second hand books too but as I have a kindle, which I'm a bit addicted to, I buy 'books' for that if available. I started to read the richest man in babylon (ebook cost $3.99!) today – next one will be more focused on property investing though.The library is a great place to get past magazines too. There are often great articles and you can borrow a few. Look up the stats in the back of old ones. It's interesting to look at the price differences etc to now.
Go to a few free/cheap seminars too. They are pushing things but you do get some good info. Just leave the credit card at home and don't get sucked in by the hype. Go to the Meetups forum and see if there are any meetings in your area. These are usually likeminded people who get together for coffee/drinks/dinner and chat. It's always interesting to talk to others. I know I got into investing quite late as I didn't know anyone that invested. Having others around you that have the same mindset as you is a real booster.
the best place to start is to ask people in this forum my 2cents worth look into hindmarsh island or goolwa these areas is growing low crime and are only 1 hr from Adelaide homes are well kept and very affordable
Hi – the advice on here is great… so I reckon you're in the right place! Definitely shop around because there are many great deals out there, but also many that are a bit on the nose!
Be interested to hear how you go!
Catalyst wrote:The library is a great place to get past magazines too. There are often great articles and you can borrow a few. Look up the stats in the back of old ones. It's interesting to look at the price differences etc to now.Go to the Meetups forum and see if there are any meetings in your area. These are usually likeminded people who get together for coffee/drinks/dinner and chat.
I actually hadn't thought to look at the stats in the back of the old ones – seems so obvious, thanks for the advice. Also what are these meet up forums, on here or elsewhere?
mcgrandles wrote:the best place to start is to ask people in this forum my 2cents worth look into hindmarsh island or goolwa these areas is growing low crime and are only 1 hr from Adelaide homes are well kept and very affordableWill have to look into these areas although I would have thought that they would have had a significant price rise as they are really a spill over area for Victor Harbor which I believe would have seen a massive price increase in the last decade due to people retiring down there and families doing the sea change thing. (I have no data to back me up on this really just an assumption!!!)
vagirl2012 wrote:Hi – the advice on here is great… so I reckon you're in the right place! Definitely shop around because there are many great deals out there, but also many that are a bit on the nose!Be interested to hear how you go!
Thanks will keep you posted on how I go.
(This post has become a hot topic!! Yay!)
http://www.meetup.com/real-estate-sydney/ The meetup site helps people organise meetups for a variety of reasons.
Also look at Somersoft forums. Good info there and people often arrange meetups.
Where are you located?
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