Hello everyone,
What does the forumites think of the use of buyers agents. I am looking to buy my first IP this year and wondered if I need to use one to de-risk my adventure, as well as save on time and effort. I am looking to invest in either Victoria/ACT or Tasmania. Do I need to engage a buyer agent from the actual/territory I intend to invest or would a interstate one be able to help me?Can you also recommend any one that you have used in the past and happy with them?
Any buyers agents please feel free to reach out to me as I am quite motivated and will move quickly to engage and proceed if its the right fitThanks
ValluvanHi Valluvan,
I noticed no-one had “got up to dance” on this one, so I wanted to share a couple of thoughts with you.First, I would think deciding what type of property you are planning to buy, and what financial limits you have should be sorted before choosing an area or a BA. Have you got these all mapped? Of course, the finances can change a little depending on each deal, e.g. buying well means less of a mortgage, less deposit, and perhaps higher rent, meaning you can perhaps go for your next deal quicker – always a good thing. Or it may allow you a better choice when deciding “which of three IPs to buy”.
Second, give some thought to “getting out” of a deal before you even get into one. And there is a lot in that – clauses to add to contracts, choosing a solicitor/conveyancer, where will you buy and why, who will be your target market when you rent this, and later, when you SELL this? Have some contingencies in place before you go looking to buy.
If one were to use a Buyers Agent, I would think using a “local” would make sense (i.e. use a BA from the place in which you are looking to purchase rather than someone in a totally different city/area). From what I have heard, their costs can be a percentage of purchase price (seems to me to be a bit like a “conflict of interest” with that way….) or a flat fee. They can cost several thousands – so do weigh up whether you jumping on an aeroplane and spending a few days might be more advantageous to you – you’ll learn a lot more that way. And of course, (as you attempted) ask others WHO you should use – the old reference is always a good way to go to weed out any duds.
I’m sure there are some good Agents out there who (like RE agents) are wanting your long-term business, so they will work their butts off to delight you to get “on your team”. I can’t recommend anyone though, as I have always done my own buying. Good luck,
Benny
Hi Valluvan
Investing is all about the reasons you are doing it? is it for your future or is it for an immediate ROI?
A buyers agent will know or be able to find out details of an area if you give them a criteria to work to, but it will cost you a fee, small as it maybe its still an out of pocket expense before you have even started your portfolio.i don’t cover the areas you are suggesting to invest in i mainly cover QLD and a few locations in NSW, but what i do is work directly with developers to promote and sell their turn key off plan investments, with no fee to the client and all the knowledge and the ability to negotiate on occasion with the developer to obtain an incentive like rental guarantee or property upgrades, this may include tax depreciation reports letting you know how much you can claim back each year, this kind of thing puts you in a positive gearing position, so my advice unless you decide to invest up here where its the sun is always shinning and the prices are generally cheaper but on the up, is to find your local version of me ;-)
You must be logged in to reply to this topic. If you don't have an account, you can register here.
