Should we bother with Buyers Agent?

[churchado]

Hi, I'm a newbie here...be nice.

I'm looking around for our first investment property in the Lakemba/Roselands/Wiley Park area.

We're looking at paying about $300K maximum and am wondering whether it's worth paying for a buyers agent to do the work for us. My partner thinks it may not be as the prices of units are fairly low already and whether we would save more than we would pay to the agent is the issue.

Any thoughts from your experience would be appreciated.

Cheers

 

[HD_ACE]

Its not the cost off the purchase price a ba can achieve that you should be concerned as much about, But the amount they will saveand make you in the long run 5_10 years.

A well placed ip will outform a lessor by thousands in the long run both rent and cg
The ba might even save you 300k straight up by preventing you buying a dud.

But if you think you are capable and confident to do it yourselves then by all means do your research and DD and go for it

cheers

 

[DavidTomlins]

Agree with HD_ACE. For an investment property in that price range and region, the value off purchase price a buyer's agent may save you is not what will be their main contribution. Their value will come into play 5 years down the track, or as HD_ACE said straight away from potentially stopping you buying a dud.

Can't speak for those suburbs myself but I believe @Jacque who is a Sydney buyer's agent and frequents these forums may cover them.

 

[Propertunity]

I'm looking around for our first investment property in the Lakemba/Roselands/Wiley Park area.

We're looking at paying about $300K maximum and am wondering whether it's worth paying for a buyers agent to do the work for us. My partner thinks it may not be as the prices of units are fairly low already and whether we would save more than we would pay to the agent is the issue.

As the others have said, in this market the value of a BA is not in getting you much (if any) money off the price. In fact in a lot of cases in Sydney at the moment, properties are selling over the advertised asking price.

The value in a BA in this market, is in avoiding buying a dud - for position or otherwise. Additionally, a good BA will get you in first position to buy a property in front of all the others. They may even get you a property that is not on the market, so you don't have to compete with others. (We're doing that a lot lately).

 

[BLTN]

How much does a BA cost typically?

 

[Jacque]

From the REBAA site:

http://rebaa.com.au/buyers-agent-fees/

 

[Rixter]

Any thoughts from your experience would be appreciated.

Depends whether you have the time and want to learn to fish yourself or you prefer to just go straight to the fish monger.

You also have the option to go to the monger first up and then get yourself around a mentor who can teach you how to fish.

What do you prefer to do?

 

[tobe]

Depends whether you have the time and want to learn to fish yourself or you prefer to just go straight to the fish monger.

What do you prefer?

Not sure this is the best analogy... In the context of being a property investor, only one of the skill sets is finding and negotiating deals.

There are quite a few others that make or break property investing, such as finance, legal advice, management asset protection etc etc.

By this logic using a managing agent is also 'not learning how to fish'. using a broker the same? Perhaps even using a conveyancer???

I think using a buyers advocate is a great learning experience for a lot of investors. they learn about themselves, and the property market.
just like using a managing agent however, they have to diligently manage the professionals they engage....

 

[tobe]

In fact, I reckon a better analogy would be, 'learn to fish off the pier with a hand line, or go out on a trawler for the night and see how a professional does it.....'

 

[Rixter]

Tobe I press the post button in haste. I've since edited my original post and it looks as if you posted your reply whilst I was doing so.

 

[tobe]

Ive had good results with a BA, and after 6 purchases (only two thru a BA), I realise negotiation and sourcing an investment property arent my strengths.

I know myself, in that sense. Without a BA's input (or a mentor etc) I would be consumed with a particular area, or type of property that may not be the best fit for my investment strategy. And then I would f$^k up the negotiating!! lol.