Ok I’m thinking about using a property investing service to get me into my first +CF investment property. Has anyone else used such a service and how was the result for you?[2way]
brett
What do you mean by ‘service’?
I have seen someone use a buyers agent that worked out very well.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
Are you referring to hunterhousehunters (or similiar name)?
Cheers,
Gatsby.Hi Terry
The service is such that you pay $1000 for a property to be found which meets very specific criteria….it could take some time though and the company appears to facilitate finance and renovations if that is the type of property you are looking for. They have an experienced property consultatnt full time sourcing property. Do you think that is good value? Am I being lead up the garden path?
Cheers
Brettbrett
Brett
You get what you pay for.
$1,000 doesn’t get you much advice nowadays.
Check that these people are licensed estate agents. I would be very surprised if they are charging those fees.
Most buyers advocates (such as http://www.buyingmelbourne.com.au – one of our companies) charge 2% -2.5%of teh purchase price.
But the right buyers advocate can save you heaps of time, money and stress
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auHi Michael
Thanks for the info. I know that the $$$ don’t seem high however they are offering just to locate a property for this price. Because they are also doing renovations they make money from the reno also. They are very up front and say if you can find a cheaper way to do the reno then go for it. The key to them doing the reno is a fast turn around of 4 – 6 weeks.
Anything else to particularly look out for in your eyes?
I very much appreciate your response.
Cheers
BrettBellyflop
What makes you want to look at renos? you carry all of the risk! Do you have any building experience , i dont like to be negative but i am a qualified builder, electrician (my old profession) and refridgeration mechanic and there are so many hidden pitfalls with old properties .the CF+ deals are out there , in my experience QLD (where you are from there are many fantastic deals ). Cash helps always though , it depends on how much you are spending and how readily available your funds are to negotiate.
Originally posted by bnag1:Because they are also doing renovations they make money from the reno also. They are very up front and say if you can find a cheaper way to do the reno then go for it. The key to them doing the reno is a fast turn around of 4 – 6 weeks.
Hi Brett,
Further to Tony’s comments – it pays to remember there are Renos and then there are renos.
I would be concerned about the quality and legalities of any work done. I mean to say – I could knock out a wall or two, build a pergola, and so but …………..
Derek
[email protected]Property investment advice and researched property in quality locations available.
Hi Tony
Is it fair to say that the reno should increase the value of the property and increase the rental income potential? We have been advised to let the experienced renovators tackle the reno so I would not be doing anything much. Can you clarify why we carry all the risk?I actually don’t know what to look for having never bought property so am happy to let the process run and learn from the first property buying experience by tagging along with the property consultant offering the service which they are more than happy to allow.
Do you do renos or buy property which requires no renovations and why either way?
Cheers
BrettBellyflop
personally i would not do a reno as it is time consuming and there are many hidden costs. for instance what if the electrical wiring is substandard and needs to be replaced ? will this company guarantee that the reno will be completed to current australian standards or will they just do what they quote and then they explain the word ‘variation’ to you at a later date because they did not see that issue when they first viewed the property.we live in a world of litigation, (unfortunately). if you want to go down this path get a building inspector (one that is used by reno companies, not new h/land builders) the most important thing is the structural integrity, electrical and plumbing these all cost plenty. with the reno company make sure it is a fixed price contract and no variations will be entered into and they are licenced . dont think bc a council inspector visits they have a licence or it is built well. have it independantly inspected. if the reno is cosmetic ie paint carpet , tile,replace cabinetry it is a far more simple reno
i only ever buy new , for maximum depreciation , maximum rent for the area and the properties are easier to rent. just think what would you prefer to rent? plus i do not want a full time job hearing about a faulty… anything. new has minimal maintenance , normally if there is an issue it shows up in the first few weeks and is under warranty so it does not cost me
i can’t afford to buy new property at this stage tony so i’m looking at lowcost purchasing property which needs maybe a new kitchen and or bathroom and maybe some paint and cleaning up. is everyone looking for this type of place?
do you think, coupled with rising prperty values, thats why most people are finding it so hard to find cf+ property nowdays?
brett
Bellyflop
you are right, positive cash flow properties are very hard to find, i’m looking for a renovater myself.
good luck
DardiHi Brett and fellow investors
I work as an exclusive buyers agent based in Sydney and search and negotiate investment deals all over Australia. Check out my website at http://www.propertybuyer.com.au for further info.
I’ve been too busy finding deals for clients to spare a moment for checking the forum.
Using a buyers agent to help you get started makes perfect sense. It also makes sense for experienced investors that want to leverage their time for other activities.
I’ve helped many investors find investment properties that never get advertised on the internet or in window of estate agents offices.
regards
Rich Harvey
Licensed real estate buyers agent
propertybuyer
save money, time & stress
0402 267 703Tony, to say new gets you the best rent return is bunk. You buy a new house in say Deebing Heights for $395k new, your rent will be $285-295/wk tops. Thats less than 5 % so you really buy a neg geared property and pray the higher depreciation on a new place softens the blow when you come to tax time.
Personally a 14 yo 2 bedroom townhouse that cost $95K 14 months ago with a $5k reno that gets me $150/wk rent is a much better prospect. Immediately Im on 7.5% gross and I also get a depreciation schedule on everything I buy and get $2-3k a year which percentage wise isnt too shabby either. It also covers rates and body corp if you buy right as well.
I have just repeated the process for one of my clients where, yes me, I did his reno and the rent went from $130/wk to $160/wk making his $107k purchase price look quite nice. And with new carpets/tiles/vanity/curtains/paint to depreciate hes looking good at tax time too. This property with $160rent/$107k purchase is 50 cents off 7.5% gross so dont tell me you get the best deals for new, and that renos are mad either.
bnag1, make your own choices, but informed ones after listening to several opinions first in here. We are all different so find the median on what you read and be confident with what you choose.
Im also a buyers agent but its Tony that got this reply, sorry Tony.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
