We have been to lots of properties, even tried to buy 2 (1 the offer was not excepted, the other had a minefield of problems when we read the strata agm). What I asking is do BA have access to other research info that I cant access?
Renel,
I think that a BA can potentially be a very good investment in time saving. I have used them in the past primarily in order to save my own time and effort when I didn’t have any to spare. However, some care is needed when choosing one. The big problem I see with BAs is that they tend to be expensive. Especially for investors just starting out, the cost can be hard to justify when you are also trying to get your deposit and buying costs saved up. You also need to be wary of BAs who are receiving commissions and kickbacks from developers. Personally, I have a problem with this, as I don’t see how the BA can have the buyer’s best interests at heart if the BA directly benefits from the sale of the properties they recommend.
I want to prefix the next part of my post by saying that I’m fairly sure that I’m not breaking any forum rules by posting what follows, but if I am, then I am happy to have the post removed, and I apologise in advance for my ignorance (I have had a look around for some forum rules, but can’t find any).
Recognising that BAs can be prohibitively expensive, I am in the process of setting up a service (via my website, http://freedomthroughproperty.com), that identifies property deals that meet certain criteria. Included in the service will be access to the research that Freedom Through Property undertook in relation to individual properties. We will only be identifying around 3 to 6 properties per month, and as such will be limiting the number of subscribers to the service, and charging a very small subscription free. Freedom Through Property won’t be charging developers any advertising fees, nor will we be receiving commissions on any of the properties we identify. Our aim is to provide a small-scale, inexpensive and completely independent service as an alternative to traditional buyers’ agencies.
Also, in the interests of empowering investors, Freedom Through Property will be publishing a free ebook on the 8th of August that details the method we use to identify areas that are likely to experience exceptional growth. With the ebook, investors then have the choice of using our service to find properties, or alternatively doing the hard yards themselves. Feel free to PM me if you’d like any more information.
Again, apologies if I’ve offended anyone by discussing my business on the forums, but I do feel it is relevant to the original poster’s question.
Cheers
KrisRenel dont you think there is a reason why they offer in house finance ……………….?
Wonder how many deals come back down valued or do they condition you in advance telling you how evil valuers are and that they always down value and there is nothing wrong if the valuation is $30K less than the purchase price.
You have to be kidding me.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard, well said! I couldn’t agree more.
Krisrenel wrote:We have been to lots of properties, even tried to buy 2 (1 the offer was not excepted, the other had a minefield of problems when we read the strata agm). What I asking is do BA have access to other research info that I cant access?Renel do you have a program that tells you all the previous sales in the area? You would have to ask the Buyers Advocate that question. Real Estate agents have access to programs that tell them previous sales. You can get this access yourself … there are posts on this forum of people wanting to share this service. I think there is access to one you can get for about $120 a month…. but really you are saying you are doing everything and there is nothing a BA can tell you so you need to ask yourself why you are not buying.
How much do you value your time? How many hours have you put in? How much do you pay yourself?
While on the face of it- a BA might cost lets say $4000 – take into consideration how much you are paying yourself? Is it claimable (speak to an accountant)? Is this for your full time job? How much would you get back if you used a BA?
Its really up to you to decide if you are doing all that a BA can do for you or not- and how much you value your time.So Im sitting here in a hotel in Perth, flown over here from MEL, just. to sort out an issue on strata in Perth that was 1) not a good BA pick and 2) managed by a lazy agent. Im now one for doing it all myself, but back in 2003 I started with 2 BAs (one in WA and one in VIC as i was flat out and didnt have time to do necessary work). The investments I chose and bought turned out the best and all th BA properties, of which there were 5, I only have this one left in Perth. So choose well, yes. I would want to see evidence of previous sales and results.
Just had a managing agent suggest 9.5% fees to me. I know WA is higher than eastern states, but seriusly? I got the we are the best service speech.. a key area fo rme, but 9.5%?
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