propertybuyer Market Update, May 2011
By Rich Harvey, Managing Director propertybuyer
Welcome to your May propertybuyer market update.
In this edition we will look at;
- The True Cost of Going It Alone
- Hot Deals
- VIP Past Client Evening - Wed 8th June
1. The True Cost of Going It Alone
In life, there are generally three choices when it comes to getting things done. You can either:
- Do it yourself,
- Delegate/ outsource to a professional, or
- A combination of the above.
When it comes to buying a home or investment property, you have the same three choices. But when you really think about it, using a Buyers Agent is not an “additional” cost. In fact, when going it alone, you potentially stand to lose a lot more in the buying process if your research, valuation and negotiation skills are just average. You need to ask yourself the following questions.
- How often am I buying property?
- Do I have the ability to evaluate the true market value without becoming emotionally attached?
- Do I have the time to search, inspect and qualify over 50 to 100 properties per suburb and refine these into a shortlist?
- Do I have access to the latest sales data and research reports for my target areas?
- Do I really know which suburbs and regions will have the best potential?
- Am I a high skilled negotiator and experienced in dealing with selling agents?
- Do I really know the local market and alternative areas that could deliver superior capital growth and yield?
- Do I know how to identify potential problems even before engaging the building inspector?
- If there is competition, how can I get ahead of the other buyers to ensure I secure the property?
Doing it on your own means you could risk paying far too much, buy the wrong type of property and miss out on capital growth costing you far in excess of the buyers agents fee.
Would you consider servicing your own car with all its electronic gadgetry? Or represent yourself in court instead of a barrister? Or do your own tax return trying to save a few dollars instead of using a knowledgeable accountant (who must know the endless updates to tax law)? Or doing your own conveyancing instead of using a solicitor?
As time is our most precious resource, it makes perfect sense to use LEVERAGE to get those things done better and faster by professionals. And since a property is usually the most expensive purchase you will make in your lifetime it’s vitally important to get it right the first time!
Access more properties (and off-market deals) - Via our extensive network of sales agents, developers, private sellers and other sources, we uncover many more opportunities than the average buyer. Agents will give us advanced notice of listings or “silent listings” that we can present to our clients before the general public gets a look in.
Leverage your timeand find it faster - instead of searching the newspapers and internet every day or weekend, get our buyers agents to do the hard work of short listing suitable properties. My team is able to quickly sift the good from the bad and identify the properties that fit the right criteria for home buyers or investors. If you add up the amount of time you spend searching and multiply this by your hourly wage rate you’ll see how the cost adds up!
Save money - We love to save our clients money and do this everyday of the week. We save our clients on average between two to ten times our fees. Understanding the motivations/ psychology of sellers and agents in the transaction and using proven negotiation and auction bidding strategies, we are able to secure properties for our clients at the lowest possible price. Are you prepared to spend $1 to save $2, or would you be prepared to spend $7000 to save $20,000? I have saved clients thousands, even millions, by negotiating well.
Save stress – We ensure you find the ideal property you want because we never tire of searching. We eliminate the risk of you making a “frustrated purchase” with endless searching, missing out on the properties you want, and compromising on your purchase. We protect clients from “Agent speak” and other pressure tactics designed to create urgency or miscommunication in the process. The conversation we have with agents is quite different to the ordinary buyer as they can’t pull the wool over our eyes or use “tricky” tactics (eg creating the fictitious buyer).
Don’t risk buying a “lemon” – our due diligence process ensures that you don’t buy a “lemon” property next to the local tip, under the shadow of an electricity tower or in flood prone areas. Do you know how to read section 149 certificates or access databases showing environmentally sensitive areas?
Maximise your returns – Finding the hot spots is just one of our specialties. We investigate demand from buyers and tenants, review past sales data, research prediction reports, then “ground truth” our research to ensure our recommendations will achieve the best possible outcome for future capital growth. We closely monitor both micro and macro conditions to take advantage of changes in the property market.
Pay the right price – We conduct a thorough market appraisal before commencing negotiations. This means that you are fully informed on the key points of value and don’t pay too much. Our in house registered valuer assists with all aspects of the appraisal and we work out an effective offer strategy to secure the property.
2. Hot Deals
In our continuous search for hot property around Australia we have found some excellent opportunities that are available to our clients. Please take a moment to review these deals and contact us ASAP if you interested to find out more….
High Growth Strategies and Instant Equity
QLD: Whitsundays area: House and land, 4 bed, 2 bath 2 car on 780m2 block just 300m to shops and less than 800m to water for $420,000, valuation approx $500k and rent $480 to $520pw. Brilliant strategy to create up to $80,000 instant equity. Only two blocks left.
Positive Cashflow Strategies:
In Western areas of Sydney we can locate properties for around $200k to $280k, then project manage a small renovation on the house then build a granny flat in the rear of the property. This strategy results in a positive cashflow yields of around 10% pa. There are lots of traps for the unwary in this scenario in regard to selecting the right property, selecting a reputable builder and getting access to deals before public listing, so it pays to use us to get ahead of the pack.
We have located several “in-fill developments” that show excellent potential for both high capital growth and solid rent return. “Greenfield” sites (on the outskirts of towns) do not generally meet the grade because they are located too far from basic infrastructure. Our selection criteria have only chosen sites that are very keenly priced, well located and well designed homes close to amenities.
We have secured a limited number of 4 bed 2 bath, 2 car homes from $378,500 (discounted from $399,999) and returning a rental yield of $650pw to $750pw furnished. Key growth drivers include mining agriculture and tourism.
Sydney Inner and middle ring suburbs – growth strategies.
We are seeing some excellent buying opportunities across selected suburbs in the Sydney market. I particularly like pockets of the Inner West, Eastern suburbs, lower North Shore and Northern beaches where demand has softened considerably (but supply constraints will push values higher in next property cycle).
My team has located some cracker deals in the past month:
Randwick – secured a 2 bed, 1 bath, 1 car for $505,000 (in same complex new listing has just appeared at $579,000).
Manly – secured 3 bed apartment walk to beach for $85 2,000 and renting for $900pw on first day after settlement.
Neutral Bay/ Mosman – won at auction for high quality 3 bed townhouse at $1.123m (under market appraisal).
Dulwich Hill- secured 2 bed 1 bath 1 car apartment for $445.000 ($25k under valuation).
Balgowlah – secured off market listing for a beautiful home at $2.88m and valued at $3.1m.
Western Sydney – Secured house at auction for $228k and putting granny flat on back with total yield approx $525pw.
These are just a very small sample of the deals we are finding for our clients. There are many more but I don’t have the time to write about them all!.....
3. Calling All Past Clients...Special VIP Event
This is a special invitation exclusively for past clients and partners of propertybuyer. /p>
We warmly invite you as our guest to attend an evening to hear an update from Rich Harvey on what is really happening in the property market. There will be also plenty of time for networking as the entire team from propertybuyer will be on hand to answer any questions and catch up with you.
In particular Rich will discuss:
Current market update and how to make the most of the current market conditions
Discount opportunities direct from developers with up to 20% below bank valuation (these are all off-market deals)
Positive cashflow opportunities (how to achieve 10%+ yields in Sydney and other areas)
New opportunities for investing via self managed super funds (SMSF)
Other new services revealed
Date: Wed 8 th June 2011
Time: 6.30pm to 8.30pm
Venue : North Sydney Leagues Club, 12 Abbott Street Cammeray, (Kamaraigal Room)
Cost: Nil - please come as our guest
Complimentary beer, wine and soft drinks along with delicious selection of hot canapés and cheese platters will be served during the evening.
Please RSVP by Friday 3rd June directly to Josephine Wolffe (Executive Assistant) firstname.lastname@example.org.
If you would like any other specific topics covered, please email Josephine and we will endeavour to cover as many topics as possible.
If you live overseas, we would be delighted to catch up with you via phone or skype conference at a convenient time.
We look forward to seeing you on the night!