S.E. QLD for investment property

Hello All

I'm a newcomer here, so be gentle...

I act as a buyer's agent in South East QLD specializing in positive cash
flow and investment properties. Here's a few examples of the properties that
I find for people...


(1) Freestanding House

3 br house good condition and good position, Income $150 pw ($7,800),
Expenses - Rates $1500 pa, Insurance $340 pa, Management $550pa - $2,390.

Buy Price - $70,000 (Nett $5,410 or 7.7% net)




(2]---4 besser block flats plus workers cottage all on one title and in
good condition, rented for $460 pw ($23920),Expenses-Rates $800pa,Management $1794 pa,Insurance $380 pa.

Buy price- $200.000 ( Nett $20946 or 10.5% )

.
If more info. required on these or others please phone or
email me.


regards

Bryan
 
Bryan,

I am very interested in SE QLD property but it would depend on the location.

Can you give us an idea of what areas you generally find your cash flow positive properties ?

Sometimes I would prefer to ..... wait for it ..... may the forum members strike me dead........ negatively gear to get a preferred location increasing capital growth chances.

Anyway, let us know.

Thanks
PIppety
 
Hi Bryan,

Sounds like you have a couple of real finds there. However, if you want more of a response to your post (and therefore your services) Id suggest a little bit more info. Can you tell us the areas these properties are in? Do you source solely in these areas, or are there others? Are your parameters solely cashflow positive, and is this at the expense of capital growth?

One thing I wonder about are the expenses you listed. There is no mention of your fee. As a buyer agent, dont you charge a fee for finding the property? Is it a flat rate, or a percentage of purchase price? Can you guarantee a purchase price under sworn valuation? (there are a few buyers agents who guarantee this, or there is no charge). I also noticed the management charges, and noticed your signature mentions "Real Estate". Do you or your associates manage the property once you have found it? Are there any other fees or charges? Do you have a Real Estate license or do you simply "negotiate" on behalf of the buyer?

Hope you dont mind the questions, but, after all, the very nature of Caveat Emptor requires that all these at least be asked.

Good luck,

Jamie.
 
Hello PIppety,Jamie,Fredo

Bryan said thank you for your posts.He is away and will be back tuesday morning and will reply to your questions then.
He apologises for the delay but was called away unexpectantly.

Many thanks
Sue
 
Hi Fredo, Jamie, PIppety, Lily,

Thank you for your enquiries and my apologies for not replying sooner. The following are the answers to the questions you have asked.

1. Location of Properties - I cannot divulge the exact locations of the properties that I source as being a buyers agent I do not list the property and therefore I have no control should some other agent gain access to the vendor and selling the property which is obviously "not in my or my potential buyers best interest".

If you would like details of properties, I would require you to e-mail me a fax number through which I can send you the appropriate authority to sign, which allows me to source properties for you as you may require. Once you have signed the authority to act for you in Queensland I can e-mail you details of any such properties. There is no cost to you unless you actually purchase a property.

I know this may sound a little "heavy handed" but such properties are relatively hard to find.

2. Re: Area and types of Property sourced - I can source properties in most of S/E Queensland. If not myself, through associates. I am not tied to Cash Flow Positive properties. I endeavour to source what the buyer requires.

3. Regarding my Qualifications - I am a fully licensed Real Estate Agent in Queensland, and this can be checked through the Department of Fair Trading Queensland. My licence number being REP 2600 565.

Yes, I do charge for my services on the basis of 2% on the purchase price of the property bought, at settlement (unless the buyer defaults illegally). No buy, no pay and no up front fees. I do not accept any commissions or other incentives from vendors, Real Estate Agents, Financiers, Valuers or Lawyers.

4. I don’t manage rented properties but usually arrange for an agency with property management facilities to look after the property.

5. In the properties mentioned, the actual fee was allowed for, ie. The buy price includes the 2%, which by the way is a tax deduction on the purchase of investment properties.

6. Re: Valuation Guarantee – I question this as:
a. There are numerous types of valuations ie: mortgage, market value, fire sale and more.
b. To guarantee a valuation under purchase price is only possible if you can control the valuer and the vendor which points towards marketering which is illegal and which I have no part of.
c. Most properties are bought subject to finance and should the valuation not support the loan, the buyer can void the contract.

7. Most Cash Flow Positive properties do not have high capital growth.

I don’t mind the questions as you the buyer should make all the necessary checks before you engage someone to act on your behalf and if you’re not happy with the information supplied ask more questions.

Thank you again
Kind regards
Bryan Karle
 
Hello Glenys

Sorry but all rsgional tourist offices regard Warwick and Toowoomba areas as part of south east Qld.

regards Bryan
 
Hi Lily

Looks like I entered "smartbuy" instead of "buysmart"@in.com.au.
Please accept my apology.

kind regards

Bryan
 
Hi Bryan,

Thanx for your reply, that cleared a few things up. Just one query though.

You stated

"b. To guarantee a valuation under purchase price is only possible if you can control the valuer and the vendor which points towards marketering which is illegal and which I have no part of"

I think you misinterpreted what I said earlier. I asked if you guarantee a purchase price under valuation, not the other way around. Some buyers agents guarantee a purchase price under valuation as a testament to their negotiation skills, bulk purchasing power, relationships with developer etc. What I meant was, what is the incentive for a prospective purchaser to use your service if the price they pay is actually HIGHER than the original purchase price asked by the vendor (as it includes your margin).

Eg Purchase price $300k. (if purchaser buys on their own)
Purchase price through you $306k.

Where is the incentive here? If you were able to negotiate the purchase price to $280k-290k, then it would be worthwhile to the purchaser. This is what I meant when I asked if you can guarantee a lower purchase price than the vendor is asking.

Hope this makes sense.

Regards,

Jamie.
 
Hello Jamie Sorry for being slack in responding to your post.

b" should have read (purchase price under valuation)

ItWould be difficult to guarantee this as the purchase price usually becomes the accepted value of the property.Most lending institutions do not value above the purchase price on the contract of sale.
This does not mean the buyer will pay the asking price as his buyer agent should be using his skills to buy at the lowest price possible (ie I bought a good 2 br unit last week for a client,asking price was $67000,we paid $55000,similar unit adjoining is on the market for $75000.(rents at $110p/w.

As to developer properties in bulk or otherwise I say beware unless you are absolutely sure they are value for money.This is where you need a totally independant valuer(of your choosing,not the developer or the agent's)

I guess it comes down to good hard negotiation.

Hope this is a little clearer and sorry again about that earlier mistake ,I would have to be the slowest,worst, would be typist created.

Kind regards

Bryan
 
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