My wife and I have been discussing buying an investment property for years and have finally decided to do it. We met with a property consultant from “Patrick Leo property services” who seems like a nice guy. He has recommended that we buy in the Sunshine coast. So my questions are, has anyone dealt with Patrick Leo property advisors and is the Sunshine coast Qld a good place to invest?
Lots of talk that Sunshine Coast is good area to buy but saying that a lot of people have been saying that for years. It is finally moving but need to be in right area.. Personally would not buy from any ‘property service mob’ did once never again. If they tell you of a property and price just do your own due diligence look in realestate.com and investigate other similar properties in the area so you know you are not paying too much. Make sure property is positively geared and yield is good. As you are a first time investor do not buy units close to city (unless) you are sure there is no over supply issue and do not buy in mining town good yield at first but if mine goes so does your money. I would listen to what he says but if it appears really really really good would be suspicious… just some thoughts.
First question: How does Patrick Leo get paid? If they get a sales commission from the developer/builder of new stock BE VERY CAREFUL. This means you are not the client, you are the stock on the shelf being sold to the real client who is the one paying the bills.
Learning the jargon and the who’s who in the industry is vital if you want to avoid sharks and rip offs. These guys may be good at what they do or may not, but my problem with buying brand new properties for investment (for most people) is that there is no opportunity for value add or negotiating discounts to market, so it is the slow boat to china in terms of capital gains usually. There are times where new makes sense but this is primarily for very high income, very busy execs who want to soak up tax and have zero effort/time/input in the journey. Average punters usually do better with 2nd hand property bought at fair or slight discount to market, plus some basic cosmetic value add strategies like minor renovations. It all depends how fast you want to grow your equity.
Secondly, if you are considering locations and markets generally, there are loads of things to consider, but it would seem you need to actually go back a few steps. What are you trying to achieve with this property? In what timeframe? Start with your big picture goals, then you look for markets that have the right metrics to fit that. There is no one perfect property or market for everyone. It all depends. In general hunt for proximity to infrastructure, jobs, major projects, lifestyle destinations, areas with limited land supply, close to water etc etc. Low vacancy rates are essential but there are heaps of other metrics to consider too. Just my 2c – All the best!
Was that person a property advisor or a sales person in disguise? The differences is mainly the fact that the sales person has already decided what you need before they have met you or know anything about you.
Hi guys, thanks for all of your replies. To answer some of your questions, he has been upfront about the fact that they get paid by the developer. As a company they bought a number of town house style properties all in a row. The place recommended to us is a four bedroom, double storey with 2 and 1/2 baths, double garage, with a alfresco area at the rear in Meridan plains,which is near a lot of recently built our being built infrastructure like the sunshine coast uni hospital. I have looked in the area on realestate.com and there are a few existing places in the same estate for sale, some bigger and more expensive, some similar size, as in 4 beds etc, but they have a largeish back yard, some smaller and a bit cheaper. So i think his pricing is Ok? My main concern is a four bed will be marketed at a family, but they will have no back yard for the kids. Then again people want ease of living without having to do much work in the garden, so I’m not sure?
He was recommended to us via our superannuation guy, (who has looked after us for years), who is affiliated with the same larger company. They are both basically sub contrator types for want of a better term. The main reason I’m fairly confident that he will try to give us something decent is we are still fairly young and he knows that we may well buy more off him down the track if we decide to buy this one and it goes well and our super guy knows that he will lose our buisness if we get ripped off.
It’s a huge decision so in just trying to get as much info as i can before we decide to go ahead or not.
First thing in this situation is to confirm if there is any financial relationship with your financial advisor and the property firm? If there is it should be declared upfront. And you should know if a payment is being made for the referral to the “property expert”.
I know the Sunshine Coast very well. As have made about 20 trips up there over the last 2 years.
Happy to have a chat if you want to give me a ring. Just drop me an email for details as don’t want to post a number here.
The take home message is still the same as Benny says, do your research, ask good questions and either be prepared to do things yourself or else build a team of actual professionals who will do quality work for the fees they charge you. If using a Buyer’s Agent they really should be REBAA accredited for example this will ensure they are not selling property as it is part of the code of conduct.