Buyers Agent and Interstate Investment

Hi, I wasn't sure where to ask this question but I'm curious to find out if I want to go through a BA and I'm from Sydney looking for my first IP interstate, would I need to go with a BA in that particular state or a BA that is in my city?

 

Hiya

BA in the location you're looking to buy

Cheers

Jamie

 

The BA will need to be licensed in the purchasing state

 

Go with BA who knows the area that you looking to buy in!

Fly in/fly out BAs need to have licence in relevant state and mostly don't have sound knowledge/connections compare to local BA.

 

Thanks for the feedback everyone

 

which state you looking to buy in? In your home state of NSW it seems to have reached the top, similarly with Perth. So Brisbane, Adelaide and Melbourne could be candidates depending on your budget and timeframe?

 

At this stage I'm still researching so there isn't a time frame. As for budget, I'm waiting til I go back to full time work early next year to sort out financing as I'm currently on maternity leave. I'm looking at using equity from my PPOR and I'm sure my limit would only be $300k to $350k maximum. I am definitely open to looking at whichever state can provide the best return and of course, growth.

 

As above you need someone experienced in the location you choose - REBAA has list of accredited members in each state. Also NSW is a big state and whilst Sydney is topping there are other options to consider locally.

 

Just to clarify though, not all buyers agents are REBAA members, yet are still fully licensed and good at what they do

 

Hi @adeline - you have received some good feedback but just wanted to add my 2 cents. Certainly make sure that the BA you are working with is licensed in the state which you are buying/they are recommending. Whether they are physically located there or not really isn't relevant though. Whether they have done significant research and due diligence is important. Would it be good for me to always be recommending clients purchase in Brisbane just because that's where I live and I work? Not likely. Be sure to ask how they select locations and why they recommend them. Is there any benefit to them recommending that location - ie do they have a Property Management business in that location? Or are they just recommending a location because they have an office in that location that can assist with project managing 'renovations' - both of these could be seen as conflicts of interest. Recommending a specific location which benefit them for another reason.

Just a few things to think about. Whatever you end up doing - make sure you ask plenty of questions and make sure you get answers which you are comfortable with. Ultimately it is your money - if you aren't comfortable - don't pay them anything!!!

Good luck!

 

Too true DaveM - should have written that more clearly. I have always been licensed and only recently signed up to REBAA thus far it hasn't altered my core business at all. Whilst I can definitely see the benefits of joining now at this stage my reason initially is more from a standpoint of feeling less emotionally isolated by running a business with no colleagues "like me" around, as well as the braintrust of all those years of experience from the other members. So far its great.

For those wanting to check a licence use the fair trading website in the relevant state, for us the link is https://www.onegov.nsw.gov.au/publicregister/#/publicregister/categories

 

Thanks for the advice, will definitely take your info on board!

 

Very true. Victoria for example the membership for REIV is considerably higher than REEBA currently. The ongoing training we receive, legal advice etc is outstanding with REIV.

 

Such wise words of advice.

 

I would disagree.
If I'm hiring a BA then I want that BA to know each street in the area I'm interested.
I don't expect a BA to recommend a region.
First see where you want to buy. Then pick the BA who is an expert in that region. No one can be expert in many areas.

 

Wouldn't disagree at all with this. Knowing a 'property market' is more than knowing a neighbourhood though. Recommending a region is only step one. That's the marco research. The micro analysis is still very important - getting street specific (rather than being guided by a suburb which is just a dotted line on a map) is also important. We are investing in 6 locations in 4 different states and can hand on heart tell our clients we have physically been to and physically driven down any street in any of the locations which we recommend Australia-wide. Just because that isn't 'normal' or isn't what a 'traditional' BA would do - doesn't mean it's wrong. As I say in a lot of my posts, it is about asking the right questions - understanding what service a BA will provide you and then you deciding on whether or not that service is what you are looking for.