Our first Investment Property - Step 1: The Buyer's Agent

[CanOz]

Speaking of which, Deedot Coffee House is highly recommended in Holland Park West for your next visit. It is right near the Dan Murphy's on Logan Road.

Thanks Ves, will have to check it out. We had some great meals in Australia, i put on another 2kg in three weeks

Will love to catch up with a few people next time we're over, so we've got Ves, SKC, qldfrog...who else in Brissy?

 

[trainspotter]

Coffee Deli at 421 Logan Road, Stones Corner, Greenslopes for all your coffee supplies

 

[CanOz]

Coffee Deli at 421 Logan Road, Stones Corner, Greenslopes for all your coffee supplies

We had lunch around there somewhere, shame i can't recall, had an awesome ploughmans platter though!

 

[Ves]

Thanks Ves, will have to check it out. We had some great meals in Australia, i put on another 2kg in three weeks

Will love to catch up with a few people next time we're over, so we've got Ves, SKC, qldfrog...who else in Brissy?

Let me know... always happy to put a face to your name if the opportunity arises.

 

[CanOz]

Let me know... always happy to put a face to your name if the opportunity arises.

Coupla B'rat lads...

 

[craft]

No no, we bought the property in Holland Park West. The rent is $530 per week....please forgive me, i have bouts of CRAFT (Can't Recall a Frigging Thing). My wife is the details person.

I'm the visionary

You using my name in vain? Lucky I will forget about it.

Congrats on the purchases.

 

[CanOz]

You using my name in vain? Lucky I will forget about it.

Congrats on the purchases.

I wondered if you'd catch that...can't get anything past you young fellas...

 

[Albert01L]

Thanks for sharing useful thread.

 

[ukulele]

Firstly, thank you for an honest review of using a buyers agent. Reason I am bringing this old thread back up is because I am thinking of using a buyers agent for areas outside of Melbourne (where I live). I own 2 investment properties, one has done well and 2nd is a bit ****. I recognise I am probably not that good at choosing property myself and want to diversify outside of Melbourne.

It has been a good couple of years since your purchase. Care to update us on how the property has performed?

 

[tech/a]

I've been developing and buying/holding and flipping
for 22 yrs.
Sold my last property---other than those freehold last year.

Some questions.
(1) Are you buying Established homes?
(2) How are you going about capital gain--IE where is it coming from in your IP
or are you just holding for rent return?

You need to know VERY well a few good agents. More so than a buyers agent.

I'm not buying Established---not any more---and not in the near future.
I am developing.
Although a builder (Civil) myself I use Project builders.

 

[ukulele]

I have been thinking about developing for a while, but from the calculations I have done the margins are super super thin. I honestly can't get it to work? My property#1 is on a bigger lot that has quite a bit of potential. That is on the radar, but not right now, do not have the capital.

1) Yes prefer established.
2) Do not mind if the property is slightly negative cash flow initially. Looking for a property to add value through a renovation, hopefully this accelerates the capital gain but of course I am looking for "organic" growth. IP#1 was bought @ 370k in 2012, just valued at 520, not bad return, not the best of course.

It's all well and good to say, "you need to know a few agents very well". But how do you get to know them well? I am just a tyre kicker compared to you!!! I assume you get to know agents over many years and over many deals; whereas I am looking to buy a property maybe every 18 months. This is why I am asking about OPs experience in using a buyers agent, because they already have that rapport with agents not in my area, which is specifically what I'm looking for.

Obviously you and I are on different ends of the spectrum when it comes to property investing!

 

[CanOz]

We used Matt to purchase out second property as well. Its the one we now live in. Its also south of the CBD near Morningside and ticks all the boxes. The first property has been full since we bought it, still producing good net yield. We'll see once we move out what we get for the place we're in now...All good with Matt though, it might be difficult to find pockets of value but if they are there he'll find them for you.

CanOz

 

[tech/a]

I have been thinking about developing for a while, but from the calculations I have done the margins are super super thin. I honestly can't get it to work? My property#1 is on a bigger lot that has quite a bit of potential. That is on the radar, but not right now, do not have the capital.

If you have equity and can sub divide for building you'll be able to get finance for the development from most anyone.

1) Yes prefer established.

You prefer renovation to add potential profit--that's fine

2) Do not mind if the property is slightly negative cash flow initially. Looking for a property to add value through a renovation, hopefully this accelerates the capital gain but of course I am looking for "organic" growth. IP#1 was bought @ 370k in 2012, just valued at 520, not bad return, not the best of course.

That's a very good return particularly if you compare it with what you put down.

It's all well and good to say, "you need to know a few agents very well". But how do you get to know them well? I am just a tyre kicker compared to you!!!

Oh we kick lots of tyres
You keep turning up at Auctions --- calling them constantly to send you lists.
You give them your numbers on that which they show you. Pretty soon they realise your not a tyre kicker --- your in business. You KNOW the numbers and don't want your time wasted when the numbers wont add up.
Eventually you'll develop a rapport and when you roll up at an auction you'll get a nod from not only the agent but other investors you'll get to network with.

assume you get to know agents over many years and over many deals; whereas I am looking to buy a property maybe every 18 months.

True in peak times It was 3 a year but I haven't done one for 18 mths. Nothing of interest yet.

This is why I am asking about OPs experience in using a buyers agent, because they already have that rapport with agents not in my area, which is specifically what I'm looking for.

Yes fine---but unless you give them the numbers you wont get what you want.
You know the numbers--make sure your buyers agent does if your using him as the conduit.

Obviously you and I are on different ends of the spectrum when it comes to property investing!

Oh I don't know---I've passed in many to people like yourself.--- different numbers.

Really not taking advantage of the lowest interest rates in decades is a sin!
I've concentrated on Plant in my business.