Join Australia's most dynamic and respected property investment community

When to use a BA?

Discussion in 'General Property Chat' started by dominican, 9th Mar, 2016.

  1. dominican

    dominican Member

    Joined:
    9th Mar, 2016
    Posts:
    22
    Location:
    QLD
    Hi everyone,

    (just another inexperience beginner question)

    Do you guys think that using a BA to buy an IP under 350K is worth it?

    I have 80K savings and I must to pay 20% deposit. The price range of houses that I can buy are no more than 350K (20% of 350K is 70K + Expenses). BA’s will charge around 11K of my budget.
    • Any thoughts around that?
    • Are BA’s more for big investor with high budget?
    Thank you in advance,

    Dominican
     
    bob shovel likes this.
  2. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,858
    Location:
    Sydney
    There are a zillion threads on BAs... have you done a search...
     
    dominican likes this.
  3. EN710

    EN710 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,165
    Location:
    NSW
    bob shovel and Leo2413 like this.
  4. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,858
    Location:
    Sydney
    I haven't found the search function to be too bad though... But I know what you mean.
     
    EN710 likes this.
  5. dominican

    dominican Member

    Joined:
    9th Mar, 2016
    Posts:
    22
    Location:
    QLD
    Thanks Leo2413! Yea I have been reading and looking in this forum and the old Somersoft, but couldn't find anything answering exactly what my question is. But happy if you can reply with a link.

    Thank you in advance.
     
  6. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,858
    Location:
    Sydney
    dominican likes this.
  7. dominican

    dominican Member

    Joined:
    9th Mar, 2016
    Posts:
    22
    Location:
    QLD
    Leo2413 likes this.
  8. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,858
    Location:
    Sydney
    Its all good mate :) I have also given you my opinion on another thread. Hope you don't take it the wrong way mate, just giving my honest feedback that might help you.;)

    Cheers.
     
    dominican likes this.
  9. dominican

    dominican Member

    Joined:
    9th Mar, 2016
    Posts:
    22
    Location:
    QLD
    Thanks mate! Any comments are welcome. I am a simple beginner trying to understand the game ;-)
    This forum is awesome .. I am feeling like a baby with new toy.
     
  10. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,400
    Location:
    Somewhere in the land of Oz
    Where are you looking to buy?
    How familiar are you with that area?
    How much time do you have to spend looking?
    Do you know how to find flood prone or development potential if that's what you're after?
     
  11. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,858
    Location:
    Sydney
    All good mate, we all gotta start somewhere. Just from reading your goals I get the sense you have some lofty dreams you want to achieve.

    Regardless of how you decide to move forward, I strongly recommend you buy some of the recommended books folks have mentioned here on PI, in conjunction with engaging with the forum and educating yourself as much as possible. That's the best advice I could ever give anyone.
     
    Big Will and dominican like this.
  12. dominican

    dominican Member

    Joined:
    9th Mar, 2016
    Posts:
    22
    Location:
    QLD
    Excellent questions @bob shovel!
    - Brisbane
    - I am living in Brisbane
    - I can spend around 4 hours a day
    - Well I keep reading forums, newspapers, checking web sites, etc... Looking more for a established house, my first IP was in a development potential place. Looking to have a mix to have my back cover.
     
  13. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,570
    Location:
    Melbourne, Australia
    Up to you at the end of the day but you can give the man a fish and he will eat for a day or you can teach the man to fish and he will eat for a lifetime... Up to you if you want to buy a fish every time or if you want to learn how to fish.
     
    Jake Milne, dominican and Leo2413 like this.
  14. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,858
    Location:
    Sydney
    What type of development potential?
     
  15. dominican

    dominican Member

    Joined:
    9th Mar, 2016
    Posts:
    22
    Location:
    QLD
    House 4*2*2 in Griffin Area ;-(
     
  16. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,173
    Location:
    Adelaide, SA
    Buyers agents can be worth their weight in gold if you're unfamiliar with property, unfamiliar with the area you want to buy in, don't have time or the confidence/skills to negotiate on property.

    It's not always about the buyers agent buying an outstanding deal which only they could find - it's about making sure you don't make unnecessary mistakes which cost you far more than their fee.

    They're not for everyone, but certainly have a valuable place in the investment scene.

    Side note - why only 80% LVR max?
     
    bob shovel and Leo2413 like this.
  17. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,400
    Location:
    Somewhere in the land of Oz
    I'd rather pay someone to get their hands dirty and just eat the fish for dinner!
    Delegate! Put your powers to other uses
     
    Corey Batt likes this.
  18. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,400
    Location:
    Somewhere in the land of Oz
    Ok you're onto it. I think look yourself even if you have a BA, so you are still learning plus they'll give feed back on the ones you find.

    For the first don't over complicate it, you pay a premium for dev sites and it may be better to get your foot in the door with a bread and butter buy
     
    Leo2413 likes this.
  19. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,570
    Location:
    Melbourne, Australia
    OP goal is to purchase 10 properties, at 10k a pop that is $100,000 (today's dollars). With his purchase price of $350,000 he could actually buy 2 properties (using LMI) by learning it himself.

    So using a BA he would have 10 properties but my way he would have 12, and if they all were purchased at 350k today and in 10 years doubled he would have an additional $700,000 equity and if he didn't do anything for the next 10 years and it doubled again he would have 2.1M additional equity compared to buying the fish. By this time you are eating the fishes eggs!

    I would rather to learn today and have an additional 2.1M in 20 years than eat my fish today and still having to keep buying fish.
     
  20. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,400
    Location:
    Somewhere in the land of Oz
    I can't see where it says to buy 10?? and I never said buy everything with a ba,just the positives of utiliising their skills. For a first ip you can learn yourself plus learn from a ba, plus have confidence for the first buy.
     
    Property Hippies likes this.