I have been looking at a few buyers agents on the net. Most of them are advertising positive cashflow properties and charging a refundable annual membership fee on condition that a property is bought within the first year. On top of this annual membership fee, you have to pay them a % fee inc GST on the final purchase price.
Questions that popped into my head:
1. How genuine is the ROI stated?
2. If this was a viable thing to do then why is it that a lot of people are pounding the streets to get +ve cash flow properties instead of just shooting these sitting ducks?One thing that seems positive though are the report researches that come with each property.
So help me out should I go with them or it's just another textbook case of betting for a legless horse?
Mr Mun…
Firstly are they licensed … ???
Ring TDFT in your state and get the details on the buyers agency guidelines …
Give the names of the sales people and the company details to the ASIC … ACCC … and the DFT and get these people checked out.
You can make money just as quickly as they can take it off you.
Good Luck … oh my FEE is 3% as a licensed buyers agent 1% non refundable, I don't work for FREE
I have never heard of an annual membership fee before. Usually you get charged a percentage of the purchase price once they find you a property. Have you had a look at Cameron Bird in Queensland
http://www.jamesbuyeradvocates.com.au/about_us.html 1 to 2%
http://www.morrellandkoren.com.au/cost1.html 1 to 2%
http://www.leadingedgeproperty.com.au/services.aspx#1 $500 to $1500 upfront feeMaybe you should do a search on buyers advocate
Why do you feel the need to use a buyers agent?
Just like every profession, you're going to have your good and bad. I think that I know who you're talking about on the internet as well.
Good buyers agents can get you access to things you wish you had access to – and they can offer exceptional value for money when you consider what you're getting. However, there are also plent of guys running around claiming to be buyers agents that don't really do anything other than charge you a fee for what you can easily do yourself.
At the end of the day, if you pay someone 2 or 3%, and they save you 4%+, then you've made a return on your investment.
Getting personal recommendations is always a good idea as well.shakenbake wrote:Why do you feel the need to use a buyers agent?Yeah, I was just looking at this as a way of solving the problem posted in the other post i.e. losing gvt housing if I buy locally. With most places being that far apart from each other I think I will have to scout around for someone to do the due diligence for me. If I didn't have limitations in investing locally I wouldn't have considered this. On the other hand I will need to gain the skill of finding good deals so if I find any locally, I will sell them on to uninhibited investors. Actually looking at this from another angle this may fund part of the buyers agent fees.
FinSpec wrote:At the end of the day, if you pay someone 2 or 3%, and they save you 4%+, then you've made a return on your investment.
Getting personal recommendations is always a good idea as well.I agree with all the content in your post FinSpec. Thanks for the advise. Do you have any you can recommend?
Look there are many different set ups you can have with Buyers Agents. Some charge a joining fee and an annual subscription fee to be informed of properties they find. Some like us just charge a flat fee.
Positive cash flow properties can be found in major metro areas like Sydney or regionals like Newcastle….but they are hard to find. If they were easy, everyone would be doing it as they say.
We've been buying several cf+ properties within 5-10kms of Parramatta's CBD and also bought one the other day in Newcastle with a gross yield over 10%….so they're out there
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