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  • Profile photo of roseandjonesroseandjones
    Member
    @roseandjones
    Join Date: 2007
    Post Count: 4

    Peter,

    I hear your frustration and yes it is difficult to get into the property market in the 21st Century. I am 37 myself. Is the Great Australian Dream your Dream or part of a belief system handed down from the baby Boomer generation. Soldiers Grants (post war), land releases and so on were all part of stimulating a shattered economy and nation post war. Australia didn’t start to recover until the late 50’s early 60’s. I would doubt that a bank would have known what a home loan was (as we understand it today )in 1946.

    The Geat Australian Dream of owning your own home is – in real terms a new phenomenon, it only got up and going for the majority at the end of WWII and then really started to pick up steam in the last 30 years.

    Home ownership is even less common in like for like developed countries; France and America for example. The UK only started to develop a home ownership model as recently as the last 20 years.

    Supply + Demand are the primary drivers of every market (as you would know). Was the dream part of a collective conscience or was the dream created – partly to instill hope in a shatterd nation,and stimulate the economy . When developing any market their is a strategy; who are the stakeholders in seeing Australia being the largest per capita home owners in the World. I can think of building supply businesses, builders, banks, agents, trades and governments to name a few. The outcome may not have been as contrived as I am suggesting it might be, but none the less the results speak for themselves. It is no surprise that the property market in Australia underpins the Australian economy and not the Financial Markets or mining. Do we ever stop to think about why – as such a small nation (population wise) we are one of the wealthiest nations in the world. It’s not mining its property and all those businesses that rely on it- it is the Oxygen in Australia’s Economy – not just residential its also commercial, retail and industrial.

    Why is that an indivdual investor gets the advantage of negative gearing from the ATO and bsuinesses struggle to get any Government support or incentives or relief in establishing and growing buimnesses? Property is that important to our economy…

    It is the way it is because by and large we bought the Dream and we still can but how important is home ownership – is it Status, Ego, have we “made it” because we own our own home, because we have ball and chained ourselves to a 25 or 40 year mortgage?

    Is it your dream or an inherited dream and belief. What’s wrong with being a landlord? It serves Frank Lowy, Harry Trigubuff, the Gandel Family and Stocklands (for example) well.

    The opportunity going forward might be – to be a landlord, rents are going up and there going top stay up – water always finds its level, so it will be with residential property. Accept the things you can not change and change the things you can – your thinking, your perspective, your approach!

    You might like to think of conjuncting on a property with a friend or colleague. Look into Co-ownerhip and tenancy in common, pool resources. Look into being a landlord, rent where you want to live. Let the passage of time deliver asset growth and wealth – you’ll own your own property soon enough. Be creative, create your own Australian Dream – we are living in the lucky country!

    Food for thought – banks primarily rely on the home loan market ergo – property industry – to be their cash cow for developing more profitable business units – corporate banking, Financial Market trading, credit and so on. Its their bread and butter! Your a Bank Officer right? Thank the property industry and the baby boomers for without it and them you may not have ever had a job in the bank at all.

    Good luck on your journey – focus on the solution, create one, have fun – enjoy!

    Stuart Jones
    Rose and Jones Property Pty Ltd – Sydney, NSW

    http://www.roseandjones.com.au

    Profile photo of roseandjonesroseandjones
    Member
    @roseandjones
    Join Date: 2007
    Post Count: 4

    Hi Barbara,

    A buyers agent represents the property buyer in the real estate transaction. If you like, a Buyers Agent is like a Coprorate adviser for the property buyer. BA’s usually provide different service levels however, the most common is the Full Service – Search, Shortlist, Evaluate, Acquistion. BA’s provide a professional service so like any service provider, they require a fee for service. The fee structures vary industrywide but as a guide they are either fixed or represent % of the purchase price – usually between 1% – 2%. A BA will require a retainer or engagement fee and this is included in the total fee so for example if your budget is $600,000 and your BA requires a fee for service of 2% for a full service option then the investment by you will be $12,000, ,less (say) $2,000 for the retainer leaving a final fee on successful acquistion of $10,000 + GST.

    Your BA should understand and be able to demonstrate values in the area you want to buy. Moving through the process your BA should only present properties on your shortlist that meet your exacting requirments with details as to why. Once you have identified a property you would like to progress to purchase, your BA should then carry out the due-diligence inclduing CMA (comparative market analysis), Historical Sales, detailed property history etc, co-ordinate/arrange Building/Pest Inspections, Legals and so on. Once you are satisfied that it is a property to move on and secure, your BA – in conjunction with you , would develop an appraised purchasing value to make offers and provide purchase price recommendations, a strategy to buy the property either before or at auction, or negotiate with the agent or vendor on a property for sale – either way securing the property at the best possible price. Cheapest is not necessarily the best.

    Your BA, by combining there property knowledge, buying expertise and the co-ordination of related services will save you time and money through the process and usually save you money on the actual purchase. It is more helpful to think of the BA fee for service as an investment not a cost.

    A BA must be either a licensed real estate agent or Buyers Agent and it is our view that a BA should be a member of REBAA http://www.rebaa.com.au. Your BA should also have professional indemnity insurance – this protects your in the event that you should ever need it.

    I hope this information helps. Visit reinsw.com.au or your state based equivalent to learn more about buyers agents.

    Best of luck,

    Stuart
    Rose and Jones
    http://www.roseandjones.com.au

    Stuart Jones
    Rose and Jones Property Pty Ltd – Sydney, NSW

    http://www.roseandjones.com.au

    Profile photo of roseandjonesroseandjones
    Member
    @roseandjones
    Join Date: 2007
    Post Count: 4

    Hi Suny,

    We are Buyers Agents in Sydney (memebers of the REINSW as well as REBAA), as we don’t cover the Brisbane market it is important that we are able to recommend a service to our clients who wish to invest in Brisbane. For this reason we refer our clients to Scott fro Property Searchers. We have known him for years. He has an exacting knowledge of the Brisbane market, is a skilled negotiator, passionate about property and the proof is in the delivery – he has always delivered to the outcomes of referred clients. More importantly, ethics is the number one virtue a BA must bring to the buying process, along with expertise- Scott has this in spades! His fee for service is an investment – he will not only save you money on the purchase price but also the time that otherwise you would have to invest. Don’t hesitate to contact him.

    Best of luck,

    Stuart Jones
    Rose and Jones Property Pty Ltd – Sydney, NSW

    http://www.roseandjones.com.au

    Profile photo of roseandjonesroseandjones
    Member
    @roseandjones
    Join Date: 2007
    Post Count: 4

    Hi Sunny,

    We have had dealings with Scott from the Property Searchers for a number of years now. We are Buyers Agents based in Sydney and do not cover the Brisbane Market. Whenever we have a client interested in the Brisbane market we always refer them to Scott. He has an exacting knowledge of the the brisbane market, he is a great communicator, passionate about property and – importantly, has always delivered to the outcomes of the clients we have referred. His fee for service is an investment – not a cost, and will be more than offset by the savings he delivers not only on the purchase price but the time he will save you through the process.

    Good luck,

    Stuart
    http://www.roseandjones.com.au

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