Hi all,
I am currently looking for my 1st IP around the $150K mark and am struggling to get time with work and family to get around and view anything. Is or has anyone gone through a good buyers agent specialising in the East Vic area, what sort of money did you have to pay and was it worth it? Do you pay money up front or once they have found your ideal IP, and even then are you under any obligations to buy etc..
Any help would be appreciated.
As with most "newbies" I`m struggling to find the best strategy to get CF+ properties. One day I`m certain renos will be the go, the next day I`m thinking rent and increase value and so on…
Am ready to jump into the whole IP thing just trying to find which way?!
Cheers MikeA buyers agent is the price you pay for your lack of time (or commitment).
I don't believe that they will necessarily find you a better deal than you could find yourself either. They just do all the legwork for you in most cases.
The fees are around $5k or more per property. Some charge a flat fee, some a percentage.
The thing you need to ask yourself is; if you spent one full 40 hour week doing nothing but sourcing a property; or even two full 40 hour weeks; would your time be worth $5k or more?
I've never earned $2,500 per week ever, so for me it's a no-brainer. For someone on $150k or more per year, it may be cheaper for them to stay at work and farm out the search to the BA.
I MAKE the time and do it myself and save the $5k.
You can do most of your research at night or in the dead times via internet to learn values of an area etc, then, allocate a weekend or 3 to go and study that area to get the feel of where the best locations are.
If 40 hours of sacrifice netts you a $150k property that will in all likelihood double in value in the next 10 years (hopefully less), then it is worth it.
Others will say; well; out of a $150k cap growth, I only spent $5k for a BA, so it's worth it to me to spend the $5k.
Good points Marc!
Hadn`t really thought of it like that,
Cheers,
MikeI could justify a BA in your position considering you are new at this, for around 2k. And or negotiate a 1% to 2% purchase price payment.
Explain everything you want as far as +CF. You might want something that has sub-division or development potential sometime in the future or a fully self contained Bungalow out the back that will help with some extra income in the meantime.
Pinpoint your exact location East Victoria is – Coastal and east country Victoria is dotted with quaint towns, beautiful coastline and rugged bushland. Includes Melbourne, Morwell, Sale, Bainsdale, Lakes Entrance, Wodonga, Seymour, Shepparton, High Country.
Which town is it that you want? Then sign up to a few real estate web sites that will send houses out that fit your price range this will help you get familiar with what's on the market in that area. This can just be done in a couple of minutes in your spare time.
When you do get an offer on a property put a clause in 'subject to due diligence to the sole satisfaction of the purchaser' for 14 days then post in the forum the place and get a second opinion from the experienced ppl in here. You can still 'get out' of the contract then.
I have found that if you go to http://www.realestate.com.au/ get to the page were you have a list of propetys in that areaup.At the top of the list you will be able to get them to all come up on a map of the area,you will then see little houses and when you click on them it will show a small picture,price,rooms,bathrooms and car spaces info.I like to open in new tab them and delete them as you don't like them.You can also find out the rentals in the area doing the same process and at the same time find out the rental market in the area.This i believe saves days of leg work and you can then look at these houses without doing it in more than 1 weekend.I can do this in 3 hours of full detailed work and can then search for the propety on a saturday.In the time between looking at open for inspections i drive around and have coffee in the area.
Mind you i have just sold a house and am only starting to look while i wait for the settlement date to came through.And i do know about bridging loans aswell.
Cheers
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