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Buyers agents

Discussion in 'The Buying & Selling Process' started by Elvis1, 17th Sep, 2016.

  1. Elvis1

    Elvis1 Well-Known Member

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    Hi everybody ,
    My question is on buyers agents as I am looking to buy out of my state which is nsw, I am not familiar with the areas im looking at which is the reason for the buyers agent .
    I am looking at a couple including binvested has anybody bought property through binvested ? as their saying is to buy under market value and use the equity to put towards the next deposit.
    I would like to know if this was your experience ??

    Thanks for any feed back.
     
  2. House

    House Well-Known Member Premium Member

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  3. wombat777

    wombat777 Well-Known Member Premium Member

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    If you decide to use a buyer's agent, make sure you use one affiliated with the Real Estate Buyer's Agent Association of Australia.

    Real Estate Buyer's Agents Association of Australia - REBAA

    They work independently of selling agents.

    Karen Young and her team from Property Zest helped me with a purchase in SE QLD last year. I'm also working with her for my next purchase at the moment.

    It's best to organise your own team of professionals ( mortgage broker, accountant, solicitors/conveyancers ).

    Buyers Agents have a good list of contacts for B&P, electrical, plumbing, handywork. I use a mix arranged by Karen. I've had great/honest advice from these people so far.

    Edit - also put the time/effort to work out your preferred strategy before engaging a BA. Know exactly what you want and a rough idea of where. Use the forums here and attend some meetups to help work that out.

    I also recommend doing a day or weekend trip for on the ground research in your preferred suburbs. It can make a big difference in selecting an optimal location for investment. You'll also be more confident when directing the BA to investigate individual properties.
     
    Last edited: 17th Sep, 2016
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  4. Elvis1

    Elvis1 Well-Known Member

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    Thanks for your reply wombat 777,lots of information to think about , I'm very time poor as I work a lot of hours .
    Once I find areas I'm going to invest in I certainly will go and visit these areas myself I think it's a must the first time .
    How are the properties travelling that Karen offered you? Was Karen able to find you under market value which is one of the reason I would choose a BA so I can keep moving through my portfolio .
    What would be her fee?
     
  5. wombat777

    wombat777 Well-Known Member Premium Member

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    In my case I was / am looking for sites with future potential and very specific about parts of suburbs to focus on. In my situation it is the future potential that largely makes the properties I am looking at below market value. I therefore tick-tack on a daily basis with the BA to provide direction on which properties to inspect ( i.e. monitoring real estate listings myself as well as considering other "off market" properties sourced by the BA through agent contacts ).

    A BA is also quite effective since they are working for you throughout the week, allowing them to jump in at short notice to inspect and negotiate on a property ( impossible/difficult if you live interstate ). This can be quite critical in busy markets popular with investors.

    It's best to contact Karen for her fees. It depends on your price range. Fee structure also varies for development sites. Give her a call and she can talk you through the process.

    Certainly talk to (call) other BAs too. That's what I did when considering which BA to use. Also ask for a sample copy of their analysis reports.
     
  6. MBowen

    MBowen Active Member

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    @The Dark Knight might be able to help. Why just nsw? Plenty of action happening in Qld and SA.
     
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  7. Elvis1

    Elvis1 Well-Known Member

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    I might of made a mistake with my title, nah not just nsw I'll invest where the market is or where the cashflow is .
     
  8. Elvis1

    Elvis1 Well-Known Member

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    I need a couple of cash flows to increase my borrowing capacity to buy a CG property and I'm looking around logan central at the moment .
     
  9. SK Investments

    SK Investments Well-Known Member

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    Wherever the wind takes me, currently Brisbane
    I'm on the ground in Logan City at the moment with my renovations if I can help.
    I believe @Steven Ryan is knowledgeable on this area.
    Some good cashflow opportunities using auxiliary units (granny flats) in LCC, My preference is going for conventional construction, and setting up as 2 separate houses giving each dwelling its own identity. Although greater yields can be achieved using some cheap construction types (such as refrigeration panels), I feel that over time when they are no longer shiney and new that these will be less attractive to quality tenants.
     
  10. Foxdan

    Foxdan Well-Known Member

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    @Elvis1 How is a cash flow positive property going to increase your borrowing capacity?
    Banks take only about 80% of your rental income...
    You will have a higher debt level....
    So unless you find. Cash flow positive property that's over 10-12%, u will be nuetral at best, but more likely worse off for serviceability
    Maybe chat to some brokers about your assumptions before u buy again...
     
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  11. zlatan9

    zlatan9 Well-Known Member

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    a bit of a noob question - how far does a BA help with the process? ie if you're the one picking suburbs and asking them to look at specific properties you see on realestate.com then is all they're doing just negotiating the best deal for you or can you say to them eg I want to buy within x kms of CBD that has good CG growth potential so please find me the best deal anywhere that involves land at less than $x? Seems like 2% (which I think is the price they charge) is a lot if it's just negotiating a deal.
     
  12. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Thats just a negotiate brief and not a full a BA brief, and you should not be charged full fee for an inspect + negotiate brief.
     
  13. radson

    radson Well-Known Member

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    I pretty much agree with @wombat777.

    We have used BAs in:

    Brisbane @petewargent

    Hobart My Property Hunter > Home

    All with what I believe is great success. We will undoubtedly utilise a BA service again when we look at Perth next year-ish.
     
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  14. Elvis1

    Elvis1 Well-Known Member

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    Hello foxdan , I am seeing a broker and the cash flow will be included in my income assessment by the bank, I do understand the yield will have to be pretty high and I'll have to find a bank that will except more than the normal 7%. You see I already have three properties and they are negetive as the banks now calculate int. and princ.
     
  15. BCR

    BCR Well-Known Member

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    My BA in Brisbane may not hunt around the lower ends of Logan but they were fantastic to deal with and highly knowledgeable of Brisbane and surrounds. PMC Property - Dimitri.
     
  16. UrbanDingo

    UrbanDingo Member

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  17. Michael V

    Michael V Well-Known Member

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  18. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    I look at myself every day in the mirror, and occasionally scare myself
     
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  19. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Have clients that have used Karen Young and co @ Zest and no complaints that I am aware of.
     
  20. Michael V

    Michael V Well-Known Member

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    Can't say I don't do the same thing every morning :)