5 Most Common FAQ’s – Frequently Asked Questions

We get asked these questions every single day, so hopefully you’ll find some answers here. Reach out if you have any questions of your own. We’re always happy to help in any way we can.

 

Question 1:

Why should I pay money for a buyer’s agent? Why don’t I do it myself and save money?

Short Answer (because this deserves an email to itself):

Buyer’s agents should save you (and help make you) money (and they certainly will save you time and headaches).

They know the exact buying process, have relationships with selling agents and dedicate their lives to understanding a property market.

Good buyer’s agents never overpay for a property. They often purchase property for clients off market and save untold amounts of money and headaches.

All you need to do is tell them what you are after, sit back, let them do all the work and you simply approve the purchase.

Compare that to trying to buy property yourself.

Real estate agents are going to extract every single dollar out of your emotional pocket… usually after buyer’s agents have already seen the property and decided it’s not a good purchase for their clients. If you’re buying property for yourself, prepare to wrestle with countless property inspections, then have to organise reports, deal with conveyancers and hope you haven’t been ripped off (or missed a key step or piece of information about the property).

Some people spend months (or longer) dealing with these processes only to be disappointed time after time (and end up spending way more than they could have).

So if you want to spend months trying to figure it out for yourself, only to purchase a property that we passed on for our clients and end up overpaying on the property for good measure… sure… you can save the buyer’s agent fee… and good luck.

 

Question 2:

You say you can buy off-market properties. Can you get me a property for well under market value?

Answer:

No. Simple as that.

If someone can get you a “bargain” property well below the market value, there’s something wrong and that should raise red flags as a buyer.

HOWEVER…

We believe 99% of properties in a blue chip market sell for 5-10% above market value and even more in these boom times.

So buying at market value is a feat in itself and should save you a good $50-100k on a $1m property, which more than outweighs our fee.

We purchase properties for clients based on an independent market valuation every time. No exceptions. Sure, we have the negotiating skills to get the best possible price, though if you’re trying to buy property at unrealistic prices, then we can’t help you.

 

Question 3:

Why do you advocate the purchase of blue chip properties for clients?

Answer:

Blue chip properties have consistently shown growth over long periods of time. They are purchased in an area which should remain less affected by external influences than non blue chip areas. The question you need to ask is “should there be an ongoing demand to live in this area despite what might happen to the economy or local industries”?

I’m not interested in short term gains, or inflated rental yields. I’m interested in a safer, more secure long term growth that continues despite external economic influences.

 

Question 4:

If I had $1m to invest, should I buy 1 x $1m property or say, 5 x $200k properties?

Answer:

This really comes back to the previous answer. I’d always rather buy properties in blue chip locations.

Recently, I asked people to share with me their “biggest regrets” in property and I was overwhelmed with the outpouring from people who had been led to invest in multiple “affordable” properties in regional (and highly speculative – such as mining) areas.

Admittedly, if you got in and out at exactly the right time, you might have made money. Everyone else saw year on year of limited or (in some cases shared with me) negative capital growth.

I’m not a gambler. I’m in this for the long term. I’d rather go with long term, consistent (and historically proven) capital growth. I’m confident in 20 years from now, Bondi (for example) property has steadily increased in value from today.

 

Question 5:

How do I get finance?

Answer:

Unfortunately, there’s no blanket answer for this one, though what I can tell you is that there are options even if your bank (or tier 1 lender) has said “no”. In fact, there are many options, though it all comes down to the individual. The only way to answer this is to deal with it on a case by case basis.

If you need help finding direction…


book a chat with Luis

as he’s helped countless clients connect with the right mortgage brokers to help them.