Yes I am aware you wouldn't usually ask for investing advice from a RE agent but on this occassion it is more about the proffession and whether it would be advised for me to move back into in a bid to stay both close to the action on a full time basis and as a mean to facilitate my investing strategy.
OK so heres my background so my plea makes a little more sense. Basically I have relatively recently (2 years ago) relocated to Australia from the UK where I was a successful RE agent in central London for a numner of years. Having arrived in a very flat Sydney market with the GFC only just starting to take affect, I thought it best to take a more stable marketing position, to help fund my own investing, which I have been stuck in ever since.
Now being of the opinion that both the Sydney markets and the NSW economy for that matter are transitioning back towards an upward curve I feel it is getting very close to the time that I should make that jump back into a RE career.
Now heres the problem. My experience is limited to UK markets (with the exception of my personal investing in australian property) therefore to my understanding I need to swallow my pride a little and work my way up the ladder again in the process taking a hit to my usual income levels.
What I need advice on is:
Is sacrificing the $120K package I am currently on a stupid idea in a bid to move back into something I am actually interested in? (Taking into consideration that I am also an investor who is desperately trying to grow his portfolio during this perceived window of opportunity)
Does anyone have an honest idea of what successful RE agents particularly in Sydney's city and east typically earn?
Does working on a predominantly commission based income have a detrimental affect on my borrowing capacity?
Thanks again for any gems of wisdom. Please dont be afraid to be harsh I need some perspective.
Cheers
D2B
1/ You will need to hold an NSW Agent's licence, not just a certificate of registration. Being an agent, it shouldn't be too high a hurdle to jump. You should, depending upon the agency, be able to negotiate a 50/50 share of commission
dreamtobelieve wrote:Does anyone have an honest idea of what successful RE agents particularly in Sydney's city and east typically earn?The "average" REA earns $57Kpa. Good agents earn over $100K and top agents earn $250+K
dreamtobelieve wrote:Does working on a predominantly commission based income have a detrimental affect on my borrowing capacity?No, but changing jobs, changing address (UK>AU) etc does. You'll have to get 12 – 24 momths job history again to do full doc loans
dreamtobelieve wrote:Thanks again for any gems of wisdom. Please dont be afraid to be harsh I need some perspective.As a selling agent in AU and NSW you will need to buy property at "market" value and declare that you are an agent. There are strict rules about buying your own listings. You may be better off becoming a buyers agent (no listings of your own to buy – but still in the RE game) or keeping your present job.
Thanks for the great feedback.
Strangely enough my medium term goal is to become a buyers agent however the advise I have been given from other buyers agents so far is that I should first obtain my RE licence and then after a couple of years apply for my buyers agent licence.
I think on reflection it would be naive of me to think that my prior success in the UK alone would position me to jump straight in, especially given the very different methods of operating here in Australia.
That said if you have any ideas on how you think I could expediate the process from RE agent to buyers agent I would be extremely grateful. Also if there are any drawbacks to being a buyers agent in comparison to a selling agent?
Thanks once againa
D2B
Operating as a RE agent first will give you a good grounding in the laws as they apply to RE in Australia. It will also allow you to see what happens in the whole "crunch the vendor", "condition the vendor", get the buyer higher" process. Later as a BA you will be able to use all of that experience to get the best deal possible for your buyer client.
As a licenced REA you can easily decide to operate as a BA. A BA licence is a sub-set of the REA licence. BAs for example in most cases do not need to run Trust Accounts or Property Managment departments (although a very few do). However, not all REAs make good BAs – as it is a completely different mind-set.
As an REA you are legally obligated to get the best price you can for your vendor (even if you hate their house). As a BA you are legally obligated to get the best house at the best price you can for your buyer. So you can give the houses you don't like (in your professional opinion) a big miss.
All the best.
The most important thing, initially, is to get your certificate of registration (plenty of places will do that) – this will enable you to work in the industry (under an agent). If you decided to go down the path of getting a full licence (about 24-30 subjects) you can then go out on your own either as agent or BA.
The duration of time spent in agency is up to you – depends upon how quickly you learn or how quick you get your licence. If need be, get your licence regardless and work on comms only to an agency in your area of interest. That way, you can do weekends or evening openings + retain your current role.
From my many years experience I will tell you this. Sydney upward curve is short lived. RBA must radically adjust rates up to slow resource boom. Sydney suffering is inevitable sadly.
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