Buyers Agent Advice

[manchester]

Hi all

I was wondering if anyone has used Open Wealth Creation to assist them with purchasing an investment property?

Cheers

 

[Davimin]

Hi all

I was wondering if anyone has used Open Wealth Creation to assist them with purchasing an investment property?

Cheers

Hi all

My first post, but the forum makes an interesting read.
I'd be interested too what people think of Open wealth Creation.

I had a Skype session with one of their consultants and wasn't convinced of their strategy for me. I believe their strategy is a one strategy fits all approach, and that strategy is noted in the book by Cam McLellan The 4 YO Property Investor. The consultant wasn't budging from that strategy of buying new homes.

One thing I can't get over is they get a commission from the builder plus they charge the buyer 2.2% of the purchase price as a "hand holding" fee. Asked why they do that and the response was "we have to make money somehow". I wasn't born yesterday.

Anyway I told them I was doing due diligence looking at other buyers agent. He said I'll be calling him soon. Well he's been calling me and I keep asking him about the double dipping and who they are representing...the buyer or the seller.

Will be interested in what people think of OWC, I'm looking at We Find Houses.

Cheers,

 

[Brady]

Davimin sounds like you have asked the right questions and sniffed out the right conclusion. Run fast.

What is pushing you towards using a BA?

 

[Peter_Tersteeg]

Groups that sell exclusively off the plan or brand new properties are not buyers agents. They're marketing companies acting on behalf of the developers.

 

[Jamie M]

They're marketing companies acting on behalf of the developers.

Making big $$$$ which has to come from somewhere.

Cheers

Jamie

 

[Davimin]

What is pushing you towards using a BA?

I suppose I have 2 IPs in Brisbane I bought over 10 years ago. Haven't done anything since, so now I've decided to get back into buying more IPs. The 2 IPs I have were bought were just lucky that they have doubled in value, so now I'm thinking strategically and thought a BA might help (as all books I've read suggest a BA) for research and putting a dart of the board as where to buy my next IP. Push me along so I don't get stagnant again. Hope to have enough IPs in 10 years to retire (wishful thinking I know).

I'm also time poor and don't have enough time to research where next to buy and what. A BA would help me with the legwork but still allow me to do my due diligence.

This forum has a wealth of information and knowledge. I learnt quite alot for you folk.

Am I wrong?

 

[Redom]

Groups that sell exclusively off the plan or brand new properties are not buyers agents. They're marketing companies acting on behalf of the developers.

This. A BA should represent you, the buyer.

I personally havent used one before, but if i did, i think i'd try and have the BA buy around my strategy (with their consultation in mind). Much rather this service than buying into their strategy.

Also being told 'we got to make money somehow', to a legitimate qn, would be a bit of a red flag to me. Its a bit too defensive/brash.

 

[JacM]

Definitely steer clear of anyone that will only offer you off-the-plan property. There are plenty of strategies in the property space other than off-the-plan. As the others have said, understand how someone is remunerated and you can quickly work out if you are paying an unnecessarily big fee for what you are getting.

 

[Brady]

Davimin do you know where you're looking at purchasing?

I haven't used a BA. But IMO a good BA's specialise in an area, know that area better then the back of their own hand. Have great relationships with the local REA and will know value straight away. They should be able to negotiate well and get you the best price.

If you don't know where you want to buy who determines where is best? Is that the best place to buy or is that where the BA operates?

 

[Rolf Latham]

I'm also time poor and don't have enough time to research where next to buy and what. A BA would help me with the legwork but still allow me to do my due diligence.

?

Indeed a BA can be of great help for you.


What city are you looking to purchase in ?

ta
rolf

 

[Davimin]

Where to purchase?

I'm taking the approach as a business decision so I have no preferable city.
Probably not NSW due to Land Tax implication though I was reading that I could buy through a Land tax unit trust.

Want to buy in the next boom location (I know everyone else does too) but obviously not at the top of a cycle. I don't know what cycles cities are in at the moment, except Perth which I read is at the bottom.

Any suggestions?

One "spruikers workshop" I went to advocated that their buyers get into a suburb before it comes out in a magazine, and by then prices start to go up. It was there sell technique.

 

[Rolf Latham]

Where to purchase?

I'm taking the approach as a business decision so I have no preferable city.
Probably not NSW due to Land Tax implication though I was reading that I could buy through a Land tax unit trust.

Want to buy in the next boom location (I know everyone else does too) but obviously not at the top of a cycle. I don't know what cycles cities are in at the moment, except Perth which I read is at the bottom.

Any suggestions?

.

let me know when u find the magic formula and I can help you bottle same and we can make a motza

Thats half the fun isnt it, then the specific property selection, coz you dont really want to be asking a BA should I buy in your turf..........

ta
rolf

 

[Peter_Tersteeg]

Where to purchase?

I'm taking the approach as a business decision so I have no preferable city.
Probably not NSW due to Land Tax implication though I was reading that I could buy through a Land tax unit trust.

Want to buy in the next boom location (I know everyone else does too) but obviously not at the top of a cycle. I don't know what cycles cities are in at the moment, except Perth which I read is at the bottom.

Any suggestions?

One "spruikers workshop" I went to advocated that their buyers get into a suburb before it comes out in a magazine, and by then prices start to go up. It was there sell technique.

The spruikers workshop is correct (they do have a few nuggets in there). By the time it's in a magazine and general media, it's already happened.

IMO the hardest part of property investing is figuring out where to buy. Once you've done this it's simply research and commitment, which is easy if you're willing.

 

[LeoT]

Originally Posted by Davimin View Post

Want to buy in the next boom location (I know everyone else does too) but obviously not at the top of a cycle. I don't know what cycles cities are in at the moment, except Perth which I read is at the bottom.

My best educated guess would be Brisbane. 8-10km from the CBD. A house. 600sqm plus. 3 bedroom. If you can get it for 530-560k would be very good. If it has potential to develop (hard at that price range) then even better. At least try and get something that can add value, eg good scope for reno, extra room etc.

good luck

 

[Jacque]

Groups that sell exclusively off the plan or brand new properties are not buyers agents. They're marketing companies acting on behalf of the developers.

Exactly and I continue to be surprised at the buyers who believe that their best interests are being served by marketeers, so please don't confuse the two.

Manchester and Davimin,

Exclusive BAs are those qualified and licensed buyers agents who charge you a fee for a service that they are undertaking on your behalf, to search, locate, assess and negotiate a property. The only national body for exclusive BAs is www.rebaa.com.au so I would suggest that you start here, depending on what state you're looking at buying in.

I cannot comment on Paul Wilson from We Find Houses nor OWC only to note that neither is a REBAA member, so please conduct your DD carefully. I have posted previously about the importance of checking licences, past experience, client references etc however at the end of the day you need to be 100% comfortable with whomever you choose to represent you- it's a huge decision and not one to be taken lightly.

Brady also makes a very good point, in that you need to have some idea of preferred area, as each BA company specialise (or have sufficient people to cover wider areas/cities/regional areas) and you need to be aware of this. We make this very clear with our clients, and list our suburbs online for clarity.

Best of luck in your quest and with your impending purchase.

 

[DavidTomlins]

Hi Davimin

I think I received a positive feedback about Paul from We Find Houses, so will see if I can dig that up and PM you - but obviously due diligence is key.

Also echo Jacque's comments, though would also add that it is important to contractually know which agent from an agency will be representing you, or how much oversight a principal will be providing.

cheers