Stepping into another state with the help of a buyers agent

devank

devank

Hi all,
First of all, I learnt a lot from this forum so thank you to the regulars.

My journey started when I wanted to buy an IP in QLD, VIC or ACT.

After researching and learning I came to the conclusion that I know nothing when it comes to investing :)

Finally, I decided to get help from a buyers agent who is located in South East Queensland. He is a member in this forum and I didn't find any negative comments about him.

He came to our place and explained everything and answered all our questions in a satisfactory manner.

So we decided to put all our faith in him and paid the deposit.

I will keep this thread updated as things progress. The only reason I haven’t named him is so that I can be brutally honest (good or bad) about this experience without violating any rules and regulations of this forum :)

Regards,
devank
 
Poor guy/girl, this thread is going to put the pressure on them and make them sweat :p

How about some detail of what you are looking for, where, budget and your over all IP investment strategy/plan. This information will make your thread a lot more interesting and useful.
 
Good luck with your purchase devank, remember at the end of the day you are responsible for your outcomes so make sure you take an active role and verify independently what you can and don't be afraid to ask lots of questions and make requests if needed. Also you shouldn't be made to feel pressured into a decision at any stage.

Will the person who visited you also be doing the searching?
 
Andrew_A said:
Good luck with your purchase devank, remember at the end of the day you are responsible for your outcomes so make sure you take an active role and verify independently what you can and don't be afraid to ask lots of questions and make requests if needed. Also you shouldn't be made to feel pressured into a decision at any stage.

Will the person who visited you also be doing the searching?
Click to expand...

And here I was thinking it was you!
 
Mindmaster said:
How about some detail of what you are looking for, where, budget and your over all IP investment strategy/plan. This information will make your thread a lot more interesting and useful.
Click to expand...
My requirement was simply a newish house with decent land in SEQ without minimal potential future issues (such as no pools). Something can give decent capital growth and decent cash flow which doesn’t require my attention for at least 3-5 years (until my kids turn 5). My budget was from 350K-450K. I didn’t want to put too much restrictions.

Jacque said:
Best of luck with it all. I hope the BA finds you a great property.
Click to expand...
Thank you Jacque. I saw your original post and you changed it after realising it wasn’t Andew :)


Andrew_A said:
remember at the end of the day you are responsible for your outcomes so make sure you take an active role and verify independently...

Will the person who visited you also be doing the searching?
Click to expand...
Thanks Andrew. Obviously your words have more weight. Yes, he will also doing the search. I will definitely do what ever possible from Sydney.

bene313 said:
The BA visted you?

The new standard of service for interstate BAs.
Click to expand...
I don’t think he came just for me. He was here for a week. He also has an employee (Branch?) in Sydney. I would be worried if he was to come just to get my business :)
 
Experience with BA: Update 1

My BA came back with selection of potential areas based my situation and requirement. He also provided why he picked this area.
He gave four nearby suburbs which I am comfortable with. He is going to start commence his search in these suburbs.
 
devank said:
Experience with BA: Update 1

My BA came back with selection of potential areas based my situation and requirement. He also provided why he picked this area.
He gave four nearby suburbs which I am comfortable with. He is going to start commence his search in these suburbs.
Click to expand...

Aawwww any chance of some names? Telling us a little detail can't hurt and the pros here can give you some tips that will help with your independent thinking/research to complement the BA's ideas and judgement.
 
Update:
I got last 10 years of individual sales history from my BA. Then I spent the last weekend to do a bit of filtering and analysing.

I have attached 4 graphs based on my analysis.
Figure 1: These graphs show the land sale price (only) over 10 year period per one square meter.
I liked the Green & Orange as most of land sales happened before 2005. Blue & purple sales are a bit recent.

Figure 2: This figure shows the mean values of houses only. Basically removed all the land sales and any sale record with unreasonable land size.
I liked the green one here as I thought it might be under valued.

Figure 3: This is a bit complicated. I selected the properties which had more than 2 sales over ten year period and calculated the growth. Obviously the rate of growth has been reduced over time. Again green seems like a under valued now. Purple look bad compared to others.

Figure 4: Again, this is the mean price for the properties with more than 2 sales.
Based on the above findings I formed the view the green was my pick and the purple to be dropped. I placed orange in second place.

Interestingly, my BA came back after looking at few properties and told me that he wasn’t going to continue with the purple. His best pick also the green one. However, he placed blue over orange.
 

Attachments

  • compare4Suburbs.pdf
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Last edited:
Mindmaster said:
Aawwww any chance of some names? Telling us a little detail can't hurt
Click to expand...

I'm not sure if it is fair to the BA I hired. I did tell him that I would be dicussing my experience on the forum and he didn't have problem with that.

It would be interesting to get the opinoin from Andrew & Jacque (or other BAs) on this issue.
 
Update:
BA I hired came back with three properties after looking at many (I hope).
1. Property 1: Originally asking $$386,000, now reduced to $379,000
2. Property 2: Asking $369,000
3. Property 3: Originally $377,000, now reduced to $360,000 plus
All 4 bedroom, 2 bathroom, double lock-up garage.
He favours the Prop 1.
It is 7 years old has a tenant (a single mum) who is on a periodic renting at $340 per week – this rent was reduced when the property went on the market so the tenant would allow easy access to potential buyers.
The property has a Council easement at the very back of the property.
According to his current market valuation (CMA) - not a professional valuation - using his research software. The resulting ‘Sales Estimate’ is $376,521.
He sent through Comparable Sales, Most Recent Sales and all Sales in that street. According to the other stats the asking price appears reasonable. Unfortunately all “Sales in that street” are 2009 sales.
He is suggesting to buy for $370K offering $360K.
I told him that even I (as a simple dad) can get at least 5% reduction in price so he has to do better.

Any expert advice would be highly appreciated.

Regards,
devank
ps: I did identify the Prop1 (out of three) as a good value for money at earlier stage. He didn't like other two for various reasons.
 
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