July 2010

Welcome to your July propertybuyer market update. In this edition we will look at…

1. When is the Best Time to Buy?
2. Clients stories
3. Maximised Property Investment Seminar - July 28
4. How to transfer overseas funds to Australia safely
5. Inspiration Corner - Thoughts of the Month

1. When is the best time to buy?

One of the questions I am repeatedly asked as a buyers’ agent is “When is the best time to buy a property?”
The short answer is “when you can afford it”....but let’s dig a little deeper to find some more clues.

Property cycles:
The property market moves in cycles and the market in Perth is typically at a different stage of the cycle to Sydney. Property markets rise and fall due to the effect of interest rates, population growth, migration, employment markets and consumer confidence just to name a few. Prices rise quickly in a rising market then level off before we hit the declining market stages and the cycle repeats itself. There are no precise rules around the timing of each property cycle as the economic conditions of each decade are often unique. Some investors espouse the rule that property doubles every 7 to 10 years, but such a blanket cliché brings false hope.

The smart investor needs to identify where their local market currently sits in the property cycle and consider the effect this will have on buyer and vendor expectation of price. If we are in a rising market (ie a sellers market), then there is likely to be little price discounting, more auctions, multiple offers on the same property and lower days on market (ie properties will sell quickly after public listing). If we are in a declining market (ie a buyers’ market), then we would most likely see properties taking much longer to sell, larger discounting and fewer offers on properties.

Time in the market vs timing the market:
The longer you hold your property investment the more equity you gain (provided you have done your due diligence and purchased in a growth area). Trying to pick the peaks and troughs of markets is difficult. But buying when there is pessimism and negative media can present excellent opportunities from motivated vendors. I try to do both – buy when the market is down and buy properties in different areas (where the property cycle is at a different stage).

Opportunity cost:
The Achilles heel of the investor is typically procrastination. The opportunity cost of not taking action and investing in property is always seen a decade later. Just think about the prices houses in your own suburb were selling for 10 years ago (and don’t you wish you had bought more!)

Here’s my tips on the best times to buy:

• After Auction – Vendors are typically “ripe” for negotiation immediately after an auction campaign. They have spent money on advertising, tested the market and received feedback from their sales agent. Vendors are usually more motivated at this point.

• Winter - during the cooler winter months, there are usually less buyers around. Braving the cold and getting out to open homes can mean you pick up something with less competition.

• End of financial year – some vendors may sell their property prior to the end of financial year to minimise their tax. You might find the price is more negotiable from these vendors.

• Christmas and Easter – deadlines bring decisions forward. I have noticed that vendors like to get a result before the two main holiday periods each year. The Vendors just want to know they can move on, enjoy their holidays and know the sale is confirmed.

When you really consider it - property investing is about buying time, not real estate. Property prices move in cycles, and over time the property market goes up in value (in the right areas). Investing with a long term perspective means you're not trying to beat the short-term swings of the market.

Opportunities to buy well are available whatever stage of the cycle we’re in – but easier in a buyers’ market!

If you are considering buying and would like to get the upper hand with a professional buyers’ advocate representing just you (not the vendor), sourcing and negotiating the best opportunities throughout Sydney and Australia, then please call our team on +61 2 9975 3311 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it for an obligation free chat.
Click here to send us your property Wishlist…


2. Client stories

Below is a selection of some great properties we have purchased for our clients recently.

Buyer type: Home Owner
Buyers brief: Home with renovation potential in the lower north shore
List price: Auction: Bidding from $1.2m
Purchase price: $1.355m
Appraised value: $1.35m to $1.4m

Buyers’ agent comment – Matt Corbett:
I was searching for a home for David and Alison primarily in the Willoughby/Artarmon area, but they had small hopes to purchase in Northbridge. They wanted a property with potential and were happy to renovate. After short-listing several properties, they decided on a house that required a fair bit of work in Northbridge, which I was initially afraid was outside their budget. With the level of interest, we had no choice than to go to auction, at which the property sold under the hammer to another buyer. However, they suffered immediate buyer’s remorse, which is not that unusual after an auction, so we stayed nearby and jumped quickly at the opportunity to secure the property at the reduced level in which we had bidded. This was a most unusual occurrence, but at the end of the day the worried buyers and my clients were both very fortunate.

David and Alison were thrilled with their purchase, but I can’t take all the credit. If not for their vision and trust in my appraisal, they would not have secured the property and I have no doubt that they have secured not only a home in their favoured suburb, but an excellent long term investment.

What our clients say:
Just wanted to say a BIG thank you for all your support. We could not have managed without you! You certainly worked that auction really well starting with a low bid and small steps to slow the auction down. The events that took place after the hammer fell will certainly be unforgettable! David and Alison

Buyer type: Investor
Buyers brief: Investment property in a high growth area
Purchase price: $310,000
Saving: $16,000

Buyers’ agent comment – David McElveney:
Johnny first heard about propertybuyer through one of our investment seminars, he came on board due to previous bad experiences with other property groups. The brief was to buy a well positioned property in a high growth area. I was able to secure Johnny what I considered the best apartment in a brand new complex; it is positioned on the top floor and has spectacular park views. I negotiated the purchase price down to what inferior apartments were selling for within the same complex; these apartments were positioned on a lower floor and with an outlook over the street. Comparable properties were selling for at least $16,000 more than what Johnny paid.

What our clients say:
”We went with propertybuyer because we wanted to try a service where they worked for us rather than a developer we are pleased with the result. David indeed worked for us. He was very patient as we went through a few options and at all times remained very professional. Never did David every try to pressure us into buying a particular property. David’s main aim was to ensure we were comfortable with the property and that we got a good deal in a high growth area. After going through a few properties we found the Caboolture units. We are very happy with the purchase. “ - Johnny


Buyer type: Investor / Home Owner (budget up to $675,000)
Buyers brief: investment property in blue-chip area that they can move into upon return from overseas
List price: $675,000
Purchase price: $665,000
Saving: $10,000


Zac and Fiona live and work overseas and have been, essentially, out of touch with the Sydney property market for quite some time. They engaged our services not only to give them an edge over the competition in being able to source and secure the right property for their specific needs, but also to give them peace of mind knowing that they were in safe hands having their best interests represented throughout the entire process. Following some fine tuning of the specifics of their brief, we quickly identified a property that met the dual purpose of their purchase brief – to attract a strong rental return in the short-term and to meet their own needs for a home upon their return from overseas. Over a short space of time, we conducted our due diligence, formulated an informed assessment and entered into negotiations on their behalf so as to close out the negotiations ahead of several other interested parties. As a result of our thorough due diligence, we were able to identify several matters that gave us appropriate leverage to secure the property at a reduced price for our clients.

What our clients say:
“Fi and I are officially the proud owners of the Neutral Bay unit and are very happy. We really appreciate all that you've done!! Wonderful! You're a star, thankyou!”



To become a propertybuyer client and get access to these deals and many more just call or email your details and we will be in touch, Click here to send us your Wishlist…


3. Maximised property investment seminar – Wed 28 July

You are warmly invited to our next multi-speaker seminar on how to maximise your returns from three essential parts to successful property investment:

1. Maximised Finance Strategy
2. Maximised Rental Strategy
3. Maximised Capital Growth Strategy

• Discover how to select investment property that will out-perform the general market.
• Uncover the features will most increase capital growth
• How do I avoid dud areas and pick winners?
• Which areas are set to boom and why?
• Discover five ways to make more rental income (yield) from your properties.
• Strategies to avoid vacancies.
• Learn strategies to find tenants that stay long term and care for your property.
• Find out how to leverage your borrowing to a safe but effective level to maximise your returns.
• Discover which banks will lend more easily and how to frame your finance applications for fast approval.
• When should you pay LMI to maximise your gearing to 90% LVR?
• How to use equity conservatively.

Real life examples of successful investors and hot properties will be profiled on the night along with plenty of tips and strategies that will propel your property knowledge to the next level.

Three specialist speakers (see below) on each topic will provide exceptional insights and the chance to have your questions answered.

Book now to reserve your seat. Click here….. http://www.stickytickets.com.au/3800

Date: Wed 28 July 2010

Time: 6.30pm to 8.30pm (6.00pm for registration)

Venue: Wesley Conference Centre, 220 Pitt Street Sydney: (The Lyceum Room)

Investment: Early bird discount (book before Friday 23 July): Single $37, Double $57
(Standard ticket price: Single $47 and Double $67)

Click here to book your ticket: http://www.stickytickets.com.au/3800


Speaker Profiles:

Rich Harvey, Managing Director and founder of propertybuyer

Rich will present many tips that could propel your knowledge to the next level. Rich is a licensed buyers’ agent, property investor and professional economist with over 17 years experience in the property industry. He is a research expert and highly skilled in investment analysis and negotiation techniques that can deliver real savings for his clients. Rich and his team have purchased over $475m worth of property for clients.

As Australia’s leading Buyers Agent, Rich has won 17 major awards including the prestigious National Telstra Business award in 2007 and also the Award for Excellence in Buyers Agency four years in a row 2004-2008 and in 2009 was named the "Buyers Agent of the Year" by the Real Estate Institute of Australia (REIA)..
www.propertybuyer.com.au


Bob Walters Managing Director of True Property

Bob is one of Australia’s leading authorities on residential property management. Bob’s contagious enthusiasm, humour, depth of expertise, professional delivery and impeccable integrity will provide an unforgettable presentation.

With more than 35 years industry experience Bob’s major achievements include:

• Being the top sales agent in a leading Sydney real estate franchise group
• Operating a highly successful real estate agency in Sydney's western suburbs for 10 years
• Being the Chief Executive of a real estate franchise group
• Managing the Training and Professional Development Unit of the Real Estate Institute of NSW
• Taking a Sydney rent roll of 400 properties to a high profit, trailblazing rent roll of 1,800 properties in less than 3 years www.trueproperty.com.au

Matt Clayton, Director of Fincept,

Matt is a highly experienced and acclaimed Finance Broker with over 10 years industry experience. In 2005 he was awarded the “Young Broker of the Year” at the prestigious Australian Mortgage Awards. After much success as a sole broker Matt forged a partnership to found Fincept in 2007 – a boutique mortgage origination business based in Lavender Bay specialising in providing lending solutions for professionals and investors. Most recently, Matt has expanded Fincept’s footprint to establish a presence in Singapore and Hong Kong. During his decade in the mortgage industry, Matt has settled over 500 loans with a loan volume settled over $300Million.
www.fincept.com.au

Click here to book your ticket: http://www.stickytickets.com.au/3800


4. How to transfer funds to Australia safely

Propertybuyer and OzForex invite you to save on your next international money transfer.
In order to transfer money internationally, we suggest you consider OzForex, a global foreign exchange specialist (and subsidiary of Macquarie Bank). They offer extremely competitive rates of exchange and lower fees than you would see with banks and other providers, so your money goes further. They can also provide you with advice & hedging tools in order to assist you in managing the volatility of the foreign exchange markets.

By using OzForex you will enjoy;

• No receiving bank fees in most countries
• Extremely competitive foreign exchange rates across 52 currencies
• Online access 24/7
• Access to a dedicated Dealer by phone 24-hours a day, 5 days a week
• Complete exchange rate transparency
• No transaction fees for amounts over AUD10,000
• Risk management tools through Limit Orders and Forward Exchange Contracts
• Exchange rate alerts via email
• Access to our highly regarded daily and weekly “Market Commentary”

To speak to one of their accredited dealers about your foreign exchange requirements call +612 8667 8000 (1300 300 424 in Australia; 0845 686 1950 in the UK; 1800 680 0750 in Canada or 0800 161 868 in NZ) or register online. Registering with them is FREE and you can view their live dealing rates immediately. Alternatively you can contact Jillian Kirwan-Lee directly on +612 8667 8049.

OzForex has been operating since 1998 and currently has more than 80,000 dealing clients globally. A subsidiary of Macquarie Bank, OzForex process over 20,000 deals monthly and has an annual turnover of more than AUD 5 billion. OzForex has an Australian Financial Services License, issued by the Australian Securities and Investments Commission, ASIC, Licence Number 226 484.

Register now and as a client of PropertyBuyer you will receive your first two transactions fee FREE. www.ozforex.com.au


5. Inspiration corner

“The more that you read, the more things you will know. The more that you learn, the more places you'll go.” Dr Seuss

“Genius may have its limitations, but stupidity is not thus handicapped.” Elbert Hubbard

“You can impress people at a disctance, but you can impact them only up close.” Howard Hendricks

“The true test of stewardship is not what your money is doing, but what it’s doing to you.” John Maxwell


I hope you enjoyed your July market update and we look forward to keeping you informed in the next edition.

To get a professional buyers advocate on your side sourcing and negotiating the best opportunities throughout Sydney and Australia, please call +61 2 9975 3311 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it us to find the easier way to buy property.

Warm regards


Rich Harvey
Managing Director
Tel: +61 2 9975 3311
www.propertybuyer.com.au


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Many thanks. Rich