Forum Replies Created
SHales,
As a buyers agents I do NO weekends unless I choose to (i.e. checking out open homes) and NO staffing of open homes because I'm selling to my database not the general public. Depending on how you are on-selling, being a buyers agent can be more behind the scenes, at least the way I have it set up in NZ is. I do most of my buying privately, or from very motivated and/or stale listings. All my on-selling is from home to my database and that usually means identifying a property and matching it up to a buyer's criteria.
One thing that I think is important to remember is that you are working for the BUYER. So getting that buyer the best deal is paramount. I think a lot of RE agents struggle with differentiating when they are working with both the buyer and seller on a single transaction and don't always do the best job for either, i.e. if you are working for the seller and your commission split is 2%, it is very little motivation to get the seller an extra $20,000 more because your extra commission is only $400.
However, if you're working as a buyers agent and your client is equity and CF+ yield-driven, your buy price will likely, as a minimum, need to meet a more stringent criteria and you may not have the wiggle room that a RE might have, especially if you are wanting to do more business with the investor!! I find I have to be more of a "negotiator" than "messenger" because I'm not just delivering an offer I am presenting a property that the buyer will have for many many years. Get it wrong and the price can be costly! Basically, if I wouldn't hold it on my own portfolio, I won't on sell it.
Vicky
Personally, I feel it is easier to over deliver and have a repeat buyer than under deliver and never get the deal over the line!
SHales, that's the BIG problem in NZ, anyone can hang a shingle up calling themselves a buyers agent. At the moment there is no accreditation program and there needs to be one.
I have assigned more than 100 contracts and I'm grouped under the same umbrella as someone who has done one contract and is calling themselves a buyers agent. That said, newbies do definitely struggle to set themselves up here as buyers agents and if they're only doing one contract every few months they quickly decide it's not as glorified and fun as it sounds!
Just like being a real estate agent, it takes time to build your database and reputation. Fortunately, the cream does still float to the top!
Vicky
Moana_fusion is right on the money!
I work as a buyers agent in NZ and have a good clientele of NZ and Aussie buyers simply because I can find them deals they can't find themselves, and I do ALL their legwork! A good buyers agent can save you thousands of dollars because they will know their buying patch intimately and will be way more experienced at negotiating than someone who has only bought one or two houses in their lifetime.
So, IP Freely, when you're looking for a buyer agent it's important to find out up front what you're paying for and how much of the due diligence process they're going to help you with because some agents will just feed you medicore properties and leave you to figure out what to do next, which is basically useless – anyone can do that!
IMHO anyone worth their weight should be:
1. finding out what your buying criteria is
2. presenting you with deals that meet your specific buying criteria
3. negotiating hard on your behalf
4. helping you through the whole due diligence procedure, i.e. rounding up tenancy forms and bond lodgements, making appointment for the valuer, building inspector, rental manager, and getting access to the property for them, plus putting together a spreadsheet with depreciation, income, expenses, which takes into account your exact situation so you know down to the last few dollars how the deal is going to look.
5. present you with everything you need to make an informed decision about the propertyBasically, all you should be left to do is read the reports, sort your finance and sign the transfer documents!
All the best,
VickyDaniel Arnold's book "The Great Bust Ahead" … http://www.thegreatbustahead.com is an excellent read (small book, easy to read) putting reality on the table.
The more trillions the US prints the worse its going to get (depending on what you're investing in)
Another good read: The Second Great Depression Starting 2007 Ending 2020 by Warren Brussee
Vicky
Very do-able in New Zealand. I have friends who've done exactly this for the past four years, even through hard markets. If you're buying well, it shouldn't be a problem.
Remember Rule #1: YOU MAKE YOUR MONEY WHEN YOU BUY.
Vicky
Yes, that's right Richard, I was referring to them being on strata titles.
Good to hear the banks in Oz are OK with four on one title still. They've got a bit toxic on that idea over the ditch!!
Vicky
A quick phone call to your friendly mortgage broker or bank manager should answer that question.
But I'll put my money on commercial lending for this one, unless they're on two separate titles, then you'll probably be fine and could mortgage with two separate banks.
Vicky
Hi KY,
Yes, definitely I can give you an update. If you send me an email I'll be in contact shortly — [email protected].
Vicky
Yeah GO YOU Scott No Mates ….
… but I thought we were all here on this post to make comments and suggestions that might help AnthonyS figure out a solution.
Vicky
Sounds like a good plan, plus it will give you all a good idea what living together is like.
All the best with your venture.
Vicky
Anthony, what are your investing rules?
Steve's 1% rule is great, but what is YOUR rule? What are your investing goals? Defining these will help you know if buying this is a good deal or not.
Do some goal setting, decide what you're looking for and then go hunting, because when you run across it you will know, because it will "tick all your boxes".
Vicky
Have you considered the idea of owning a large house converted into individual flats, or a small block of flats so you can all have your own individual space? Just a thought as this is likely to end up being a fairly long-term relationship and as soon as one or more of you starts getting serious about marriage and/or children it could upset the apple cart a bit if the others aren't into the baby scene or such.
I would want to be very sure of the partners, especially if you're all going to be living together under one roof and recommend that you take care of the downside before you get involved, i.e. figure out how you're going to unwind the deal if one wants out.
Good thinking though Rod.
Vicky
At the risk of sounding really stupid, maybe I've missed something here, but ……..
…. why wouldn't you purchase an investment property that is already cashflow positive funded at 100% now and let the tenants pay it off for you over the next 10 years?
Vicky
I think I'm liking the New Zealand system better
Vicky
Excellent Video!
I'm in NZ, so not familiar with how your Ozzie Sales and Purchase contract works, so I'm a bit surprised that you have to lose 0.025% ($????). Can someone explain that process to me please?
In NZ, we don't pay a cent until the contract is unconditional, i.e. we are 100% satisfied with valuation, building inspection, lawyer has checked title, and anything else that needs investigation.
I always insert a "get out" clause in the contract to the effect ……………..
"This agreement is entirely conditional upon the Purchaser approving (in the purchasers sole and unfettered discretion) all matters that the purchaser considers may touch, concern or affect the property or the commercial viability of the transaction within 21 complete working days after the date of execution of this agreement by both parties. If notice is not received in writing by the vendor’s solicitor or agent by 4.00pm on the 21st working day working after the date of this agreement of the purchaser’s approval of the property, then the contract will be at an end. This condition is inserted for the sole benefit of the purchaser."
This means if I don't like ANYTHING, I can get out of the contract at zero cost.
Vicky
All good books recommended by wealth4life Seddar — get reading lad
Well done BTW, I'm impressed!!!
With the drive and ambition you are exhibiting here, I'm sure you will succeed provided you do sufficient RESEARCH RESEARCH RESEARCH to keep yourself safe. SHales has provided you with an excellent list to be working on.
Continue hanging out here on the forum and ask lots of questions, no matter how dumb you might think they are. People here are real friendly and more than happy to help newbies out.
Happy researching and reading,
VickyYan, I have NEVER heard of a valuer changing his valuation days after writing the figure. Once written, cast in stone for at least three months!!!
That said, you could have 10 valuations done by 10 different valuers all on same day and expect to get 10 different figures.
For example, I know of somebody (not me!) who had valuation done here in NZ recently which came in at $220K. She thought that was extremely low and properties used as comparable were all inferior (her property was three bed, valuer used sales from two bed properties and mortgagee sales). So, she had another valuation done that came in at $280K. Now, she's totally confused and doesn't believe either of them. Low one is too low, and high one is rather generously high, but at least used more comparable properties in assessment.
If you don't have experience negotiating (which it sounds like you don't), I would recommend you buddy up with an experienced property investor at your local property investing club (check yellow pages). Find someone there who you trust and who is happy to go and negotiate for you. I would even say, decide the price you are happy paying, tell investory buddy if he can get the property for lower than that you will split the difference with him. Sound fair? Win-Win for both of you.
Also remember, when buying IP not to get emotionally attached. There will be many more good deals coming up.
Happy negotiating,
Vicky
Fair call gmh454. I am primarily speaking of people buying who have positioned themselves to be in a good place to take advantage of the great deals we are seeing, people that are happy to buy with a 4% spread from interest rate vs. yield, people that presumably are not out of work or working less hours.
My buyers list is growing in leaps and bounds, not unlike the 2004-2006 period where we were last seeing 10% plus yields, even though interest rates were 7-8% back then, but people were happy to buy anything on a 10% yield.
From what I can gather, the ones that are buying are not the people out of work, those working less hours, or those unloading their deflating assets because they have over borrowed on them. The people buying have carefully positioned themselves and are not over-leveraged, so they are comfortable putting 20% into own a property which in effect makes it even more positively geared.
Interesting times we are seeing!!
Vicky
Almost sounds too good to be true doesn't it?!!
Thanks for the links, quite interesting reading. If I was considering such an escapade, I'd be wanting to speak with a few people who had used the produce and ask them how they found it worked. Any good retailer selling the product should be able to give you references to call.
I'm interested to hear how it all turns out.
Keeping an open mind,
Vicky
