Seeking advice - Considering H&L packages in Redbank Plains (QLD) or Springdale Heights (NSW)

So you have some properties on P&I loans? I thought generally investors stick to IO loans?

 

Only have interest only loans or LOC's . Increases cash flow .

Sold properties for profit . Paid CGT and used that to pay down loans .

Cliff

 

Yes, it sounds like a similar experience. Although I'm not sure who's watching / reading so I won't say who the group is!

Personally, I wouldn't go that route again. I still have all 3, because they are c/f neutral. But I have tied up 20% deposit equity in each of them. That's not so bad for me because I've got equity in other ip's, but if it's ip2 then tying up that equity could cost you time.

I've used a genuine BA twice in markets other than my own (Sydney) and it's been far better.

Good luck with it all.

 

Definately be careful of the H & L packages but more importantly compare the median price for the product that you are considering ;For example
If you are looking at a H&L package of a 3bed 1 bath and they are asking $400K ?
-then checkout the median for the area for a 3 bed 1 bath and its at$280K?
(as is many parts of ipswich currently ),
-then you are paying more than what the product is worth in the current market.(of course there are many other factors-ie land size ,condition etc but this is still a guide to help stop you over paying)

 

Thanks for clarifying

 

So in terms of a genuine BA how does that work, do you pay them an upfront fee or do they get paid a % upfront and then further when purchase is finalised?

 

Yeah I appreciate the advice, I'm gonna spend some time reading more and putting together a little process/package for myself in terms of what data I need to be looking at (such as this), what resources are available (e.g. SQM, rental yield data, suburb reports, etc.) and go from there.

I'm gonna email them this afternoon and let them know that I'm not gonna go with a H&L package and will instead do my own research for a property, be interesting to see how they take it!

 

Hi Andres

I’m aware there’s a few BAs on this site, so there’ll be many more qualified to answer than me – but in my experience the fees work as follows:

- There is an initial ‘sign on’ fee, which I view as a way of ensuring you’re not a time-waster or simply picking someone’s brains. I’m ok with this and it seems a reasonable position for them to take; and

- There is then a further fee paid at some future date or trigger event, such as unconditional exchange of the property they’ve sourced you.

I’ve had experience of fees being both fixed (ie, $X at sign on and $Y on exchange), and of there being a sliding scale/percentage based on the cost of what you buy. The latter approach seems counter-intuitive, in that the BA makes less more money if they negotiate the purchase price down. However, the incremental change in the fees as a result usually doesn’t amount to that much, and I’d think a BA would rather have a satisfied customer referring their services (or coming back for repeat business) rather than what might be a few hundred dollars more fee.

I also think there’s a register of buyer’s agents, so you can also check whether who you’re looking to work with is on that register.

KJL

 

Thanks very much for your help, at this stage I'm not sure if I will go with a BA or not, I'm kinda excited about the idea of doing my own research and flying up there to meet some agents.

So I let the property group know and they were fine with it, the broker is still keen to handle my finances, they advised that they only deal with property advice for new dwellings so I'm guessing they were getting kickbacks.