Buyer's Agent Sydney

Discussion in 'Property Experts' started by Ayaz, 7th Apr, 2020.

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  1. Ayaz

    Ayaz Member

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    Hi All,

    I am planning to get into property investment since I can't afford to buy a home in Sydney.

    I came across Buyer’s Club (Sydney), has anyone dealt with them before?
    any reviews?

    these guys are buyer’s agents helping you build your investment property portfolio, however, their fee is $15,000 and I feel it a bit too much.

    your thoughts, please.

    Regards,

    Ayaz
     
  2. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

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    Hey, and welcome :)

    Many BA's are around that amount, but many people might not see the value.

    The alternative is to learn the skills yourself - which is what most investors on this forum have done.

    Personally, I think any actual skill you can gain in regard to investing will be worth it, even if it just means you can have an intelligent conversation with whoever is advising you.

    There's lots of people who will happily take your money, so you want to be sure you can smell a rat when necessary.
     
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  3. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    @Ayaz - are they doing off the plan or established properties?

    We started our journey with a BA's help. That's 10 years ago. It helped learn the ropes and then make subsequent decisions on our own, based on what was learnt.

    Depends if you value real experience versus learning through mistakes (which most BA's / mortgage brokers already have done so in their own journeys).

    Just like you won't go learn how to give yourself a hair cut or do surgery on your own.

    Not everyone has the resources to work with a BA. However it can be an effective way.
     
  4. Mumbai

    Mumbai Well-Known Member

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    why dont you have a read through the forum and narrow down the options for IP suburbs. Once the Covid19 restrictions are eased, physically visit the places and make your own decision. This will provide you with some experience and probably save you that $15k (if you dont go with a BA)
     
  5. Ayaz

    Ayaz Member

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    @Property Twins

    thanks for your response.

    I'd love to do things on my own, however, currently, I don't think I have the knowledge or the bandwidth to do it on my own.

    I was thinking I will start with a BA's help and learn from their experience as I can't afford to have an expensive learning experience.

    They are doing house and land packages in Brisbane. off course the story they tell me that they would buy property under market value.
     
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  6. Trainee

    Trainee Well-Known Member

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    Thats like the thermonuclear bomb of warning bells.
     
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  7. Ayaz

    Ayaz Member

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    @Jess Peletier
    Thank you.

    I guess BA's are expensive. However, these guys are interesting, since they've offered cask back as well to cover my repayments during the construction phase.

    it all sounds too good to be true and there goes my alarm bell.
     
  8. Ayaz

    Ayaz Member

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    not the first one.
     
  9. Ayaz

    Ayaz Member

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    @Mumbai

    that's a good one. however, I can spend days researching but won't be practical for me to visit Brisbane every time I want to inspect a property.

    if there was a way to do positively geared property in Sydney I would surely do.
     
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  10. Mumbai

    Mumbai Well-Known Member

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    You did not mention Brisbane in the post. Anyway, I would still do my research before handing over money to someone to decide a property on my behalf.
    I shy away from House and Land packages. But there are some popular forumites who have made a motza with these kind of properties.
     
  11. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

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    I reckon it IS too good to be true. So many alarm bells.
    > Cash back - make no mistake, you pay for this.
    > H&L
    > $15k fee (!) I bet they get comms from developers.

    I'd suggest there's nothing wrong with using a BA but you need enough knowledge yourself to be able to see if what they're suggesting is massively flawed.

    A bit of self-education before rushing in will go a long way.
     
  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Established stock only 90 % of the time, unless infill land in middle ring burbs

    ta
    rolf
     
  13. Ayaz

    Ayaz Member

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    @Rolf Latham
    sorry I didn't follow.
    care to elaborate?
     
  14. Ayaz

    Ayaz Member

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    @Jess Peletier
    agreed 100%
    I tried to look things up and was only able to search for things online.
    However, I am not sure if other BA's manage the property, or have property managers on speed dial.
     
  15. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    I'd be cautious with H&L pacakges. Did you check what comms they may be receiving?

    Established properties any day of the week.

    Depends what your goal is? Some people get sucked into things like rental guarantees and free advice. Ends up being an expensive lesson.
     
  16. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

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    Most BA's wouldn't manage the property. Generally a one-stop-shop has issues of it's own - you're best off having your own team rather than using theirs.

    They might have some they like, and can refer you too, but always check if they have a referral arrangement between them. You want the recco to be genuine, rather than b/c of a business arrangement.
     
  17. bradleee16

    bradleee16 Active Member

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    Just stumbled across this thread. I had a 'strategy meeting' with them earlier this year (in his apartment/home office...) Obviously they still need to make money somehow -- their cash back model means the builder essentially pays them.

    The overall meeting was very aggressive sales and the gentleman suggested when we reach a borrowing wall that we create shell companies and pass some cash through it to get another loan, even if it's at a higher rate. The whole thing seemed dodgy. I emailed him after to say thanks for your time but I don't think this strategy is suited to me, got some angry night emails questioning what strategy I was talking about (and he reminded me he has 16 houses and I don't).

    Very weird professional demeanor too for someone asking for big $$. Got up at the start of the meeting to slurp on his scoop for his preworkout and then went to the bathroom for 10 minutes (lots of loud grunts and noises from the bathroom during that time). He came back super hyped and really to close the deal.

    Overall, based on my experience, I'd steer clear...
     
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  18. Jacque

    Jacque Jacque Parker Premium Member

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    So.... in other words they sound like glorified selling agents, posing under the term of 'buyers agents', recommending H&L products that have been sourced from 'exclusive access to investment grade property opportunities in growth corridors that are not readily available in the retail property investment market' (taken from their website) :rolleyes: puhleassee.......

    If they are so independent why are the builders and developers giving them cashbacks? This is most likely because the 'cashback' is already built into the price you pay as @Jess Peletier has pointed out. Bit like buying a $8 burger for $10 but getting $2 back :D Nil savings there....

    A truly independent BA works with you, either directly off your brief (criteria and budget), or collaboratively developing a brief with you to find the right property that suits. They charge YOU directly as purchaser, and DO NOT receive any fees/comms or benefits from the seller or their representative/s. Fullstop. From what I can also see, Buyers Club don't have a profile of any representatives or even a team on their website.... Who are they? Where are their credentials? This is always a red flag for me, when a business advertises but you don't know WHO you're actually dealing with.... why should a consumer have to go off a website to find out the owner/director of a business in this industry?! But anyway let's do it....

    The LIC of Buyers Club is Samara Metri if you look them up here in NSW
    OneGov Mobile | Public Register

    and Samara's licence is also associated with "Dream Design Do" which was Zaki Ameer's company
    OneGov Mobile | Public Register

    Zaki had a tad of bad press here....
    Angry clients, staff slam celebrity investor over ‘unpaid’ refunds

    I'd also like to point out that if you are engaging a BA to buy in a particular state (in this case it sounds like those gold star properties are in QLD ;)) they MUST have a licence in the state they are acting on your behalf for. So make sure you always check this.... Also need a completed Buyers Agency agreement completed in order for them to charge you a fee.

    Due diligence is SO very important when it comes to buying property.

    Obviously, being a BA, I have a different perspective, but independence in this industry is VITALLY important, and something that some consumers really don't delve into deeply enough. So many get wooed by slick marketing and fall for the old lines of exclusivity, gold star "investment grade" (whatever that means) properties, "below retail" :rolleyes: and other well worn hooks to get drawn in. I could on for days but it's a tired old argument and I've had a big day :D

    For accredited and truly independent BAs nationally check out REBAA www.rebaa.com.au
    Note this agency is not currently a member.

    Good luck with your DD @Ayaz
     
  19. Phil Harker

    Phil Harker Member

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    Okay as a long term investor (26years) I think I’d like to wade in on this conversation as there appears to be a lot of ill-advised and uneducated comments being made by apparently those in the industry who should know better.
    Firstly there is nothing wrong with house and land packages if they are structured correctly for investment purposes, for instance house and land packages can be fantastic for minimising taxation as they can be split into construction loans and land loans with significant savings on stamp duty and 100% of the construction loan can be depreciated over time and you don’t have to pay stamp duty on the construction aspect of loan Where as you don’t get this available to you on established properties.
    Secondly of course cashbacks and builders rebates are built into the price of the property which is just as it should be as long as the valuation stands up that means that these costs can be passed on to tenants through cash flow positive investment meaning you don’t have to wait for capital growth to access equity, you can pull the profit straight away via the cash rebate, this is a sound and long sought after real estate investment strategy.
    Using or making comments like Thermo nuclear warning and alarm bells when clearly the strategies are sound I believe is the real cause for concern hereYou see the problem with telling people to do their own due diligence is exactly that most novices in this industry when it comes to investing don’t even know the questions to ask to get the answers that they require and that’s the real trap this is why buyers agents have a place and a relevant in the investment world
     
    Last edited by a moderator: 30th Nov, 2020
  20. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

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    Welcome to the forum.

    Interesting perspective. Any investment that sells itself on minimising tax rather than making money is problematic IMO. We see a LOT of crap investments being flogged to unsuspecting newbies so they can 'save tax' - while of course a good investor can make money from H&L, it's not through these companies generally speaking. WAY more often than not they get burned, lose money every month despite 'tax savings', and are stuck with a crap investment that doesn't grow.

    Re cash-backs - valuers see straight through these and value them down. I really don't get what you're saying here. Clients would be way better off just having a lower purchase price than a cash-back. As jacque said, it's like buying a $8 burger for $10, then getting a $2 cash-back. It's just artificially inflating the purchase price and everyone in the industry sees straight through it.

    We love BA's - the issue is not all BA's are good BA's.
     
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