To Buy the Right Property at the Right Price....... Just because a property is new, near a city or CBD doesn't necessarily mean that you must pay a premium nor is it necessarily a 'dud' just because a property is older, or in a remote location. Some of the properties that are performing well now in Sydney for example are in the middle ring suburbs. Next big uplift predictably will be Sydney's outer ring: Hornsby, Penrith, Campbelltown and Sutherland.
Up to 30% of properties sold are not advertised to the public as some sellers require a quick sale or do not want the expense and inconvenience of going through a lengthy and anxious auction process. We are trained in negotiating price and are very experienced because we buy/sell frequently
Vendors often prefer dealing directly with companies/ BUYERS AGENTS such as Freer Property and Finance (FPF) because they know that we represent serious qualified buyers who can make a quick decision when presented with the right opportunity.
To find the Right balance of cash flow and capital growth - All properties tend to fall into one category or the other so it is important to understand this 'trade-off' in optimising a match for our investor clients.
There is also the opportunity to 'manufacture' capital growth through cost-effective renovation with the right established property however 'off-plan' purchases can occasionally also work well where careful due diligence is applied to developers and locations.
Talk to us about paying WHOLESALE rather than retail prices
In order to correctly evaluate a potential 'CASHFLOW POSITIVE' property one needs to base valuations on the realistic, long term reliable cashflow- not the type of cashflow that would come to a stop the moment a mine/ local industry closes down or slows.
Property investors generally profit the most by purchasing the right property rather than trying to become developers. Buying the right property carries far less risk and typically generates a higher capital return. We have been recommending the purchase of a property in an area with a FASTER GROWING POPULATION and NEW INFRASTRUCTURE, such as a one or two-bedroom apartment in inner Brisbane or 3BR house in Sydney or Melbourne growth corridors. Properties in these centres tend to have better capital growth outcomes over time than say property in smaller centres or mining towns with more volatile returns.
To Buy in the Right Cycle with the Right Timing. With ongoing weakness in the European economy and a slowing Chinese economy impacting on our mining industry, any cash rate increases are likely to be minimal. We are currently enjoying historically low interest rates.
What is the Right Price?
I think the following raises some excellent points about Buying a bargain property I?ve included a few of the highlights for you to get the gist of the article:
Actively pursuing bargains can have catastrophic consequences if you?re not aware of the pitfalls. I actually recommend investors avoid buying under market value. Sounds crazy? Hear me out....
Buying at a discount - Buying at a discount is buying a property for less than the original asking price. This is nothing special; it happens a lot. The discount is the difference between the original asking price and the eventual sale price.
Real estate agents routinely add an extra amount to the expected sale price. This is so buyers like us can feel better about ourselves after successfully haggling the seller down to the price they were going to sell at anyway.
Buying a bargain - It is possible to pay more than the asking price and still get a bargain. For example, the seller may not know the potential a property really has. A bargain is really quite subjective. It all comes down to opinion. One buyer's bargain is another buyer's barn.
Buying under market value - Buying a property under market value is buying a property for a price that is less than the recent market valuation that a professional valuer has placed on the property. This is the strategy most investors want to succeed at. Before a property has been sold, we actually don't know its market value; we can only estimate it. But on the day it sells, the market value is precisely the price it sold for. So, technically, it is impossible to buy under market value. What we mean when we say 'under market value is that the sale price is less than what the property should have sold for in someone'' opinion.
What do you think? Maybe you?d like to read on? Check out the full version here? http://www.yourinvestmentpropertymag.com.au/buying-property/is-bargain-hunting-a-good-idea-220304.aspx then give me a call to discuss how this might impact your decision to enlist the services of a professional property buyer.
When acting as a buyers agent we only get paid on results (other than a nominal engagement fee). Our fee is usually based on either a flat fee or a percentage of the asking price of the property.
NO request is TOO BIG or too small eg. sourcing investments from $170k to DEVELOPMENT SITES of $700m
If there is a match with one of our vendors' (listed) properties no fee will be charged.
See FEATURED PROPERTY
Our commitment is to sourcing the right property at the right price and then assisting with sourcing related services, such as finance, legals, accountancy and management, if required.
$500 engagement fee is all you pay until satisfied and selected property is purchased.
Before sourcing suitable properties, it is essential that we understand what is important to you when investing in property/selecting a development site or purchasing a home, as we have access to properties and individual projects across a diverse range of product type and geographic location, to meet varying buyer's needs....
7. Investing as an Individual or in a Trust /Company structure ie. differing tax benefits eg. we have properties approved for investing via a Self Managed Super Fund and can assist with this process.
Once we understand your preferences, we are able to refine your strategy and email you our due diligence for a particular region. You are welcome review 'example properties' accessed via the last tab, and to reply with your preferences, for analysis at no cost or obligation.
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Freer Enterprise Pty Ltd t/as Freer Property and Finance - Licensed Real Estate Agent and Buyers Agent