WILLIAM
Associate
PROPERTY investment, it’s something many people do, but not everyone really understands.
Plenty of new and seasoned investors are happy to offer their unsolicited advise if you mention you are thinking of getting into the market, but how much of it should you listen to?
Buyers agent Darren Piper of Universal Buyers Agents reckons there are four big property investment myths.
“This could not be further from the truth,’’ Mr Piper said.
He said each area is divided into several suburbs and each of those operated with different supply and demand drivers.
“In fact, within each suburb of a city, there are usually a couple of districts with different factors that may impact the value of a property,’’ he said.
An obvious exampled was a house with city views would be worth more than another similar house a street away but without the views.
“I’ve heard people say on more than one occasion that properties double in value every seven to ten years. This is simply not true,’’ Mr Piper said.
While it has happened in some hot markets in Sydney and even Melbourne in the past decade it is by no means across the board in other capital cities.
“You can’t generalise the property market and if you take a closer look, you will find that some properties in Sydney and Melbourne have not performed as well,’’ Mr Piper said.
“You can’t buy just any property and expect the value to skyrocket in a few years. Do your research and find a property that has potential to increase in value.’’
Mr Piper said the property market moved in a seven to ten-year cycles and investors often spent a considerable amount of time working out the best time to buy.
“It may make sense to purchase a property at the bottom of the cycle when prices are low, but it is not guaranteed to really make a difference and it isn’t the only factor to think about when investing,’’ Mr Piper said.
“You may score a bargain, but if the cycle stays sluggish for longer than expected, you may also find yourself waiting years for the market to pick up again.’’
This is a classic fallacy that has been floating around the property industry for a while now,’’ Mr Piper said.
He said houses generally cost more than apartments but it was a common misconception that the majority of a property’s value was in the land.
“It has been proven in bustling city suburbs that apartments can rake in just as much profit as the humble home,’’ he said.
Brisbane is tipped to have the strongest property market in Australia in the next few years.
Recent figures released by the Real Estate Institute of Queensland has revealed the Sunshine State capital has welcomed its first $2 million suburb.
The March quarter saw median house prices in Teneriffe rise to $2.075 million, while a record 15 Brisbane suburbs rose to million-dollar status.
House prices annually have grown 4 per cent in Brisbane, taking the annual median to $650,000.
Darren said the Brisbane house market had once again proven itself to be a solid performer.
“This market consistently performs well for property owners, while maintaining its affordable status,” she said.
“Brisbane now has its first $2 million suburb with Teneriffe, but compare this with Sydney, which has more than a dozen, possibly up to 14 suburbs with a median house price of $2 million or more.”
However, leading real estate industry figure John McGrath said Brisbane would soon start to catch up to its southern rivals, Sydney and Melbourne.
Darren Piper described the Brisbane market as “undervalued”
“We think Southeast Queensland, and Brisbane is a focal point, is going to be one of the strongest markets in Australia,” he said.
“We think it is going to be the strongest market in Australia for the next three to five years.
Universal Buyers Agents director Darren Piper says the Brisbane property market is strong, compared to other major cities.
“One-bedroom units in Sydney are selling for $850,000 to $900,000, you can buy better property with more upside in Brisbane for half that,” he says.
“Brisbane delivers the strongest returns for investors with rental yields of 4.1 per cent for house and 5.2 per cent for units, higher than Sydney, 2.8 per cent and 3.7 per cent and Melbourne, 2.6 per cent and 4.2 per cent.”
NOT every property makes it to market with plenty being transacted without a sign even being hammered into the front lawn.
So how do you snare yourself an off market property?
Buyers agent Darren Piper of Universal Buyers Agents said off-market sales were a way that some savvy home buyers and investors could avoid the pitfalls of buying at auction or with more competition.
Owners sell off market for a number of reasons, he said, including not wanting dozens of people traipsing through your home at open inspections.
Finding the properties was all about networking. Mr Piper said a buyer’s agent could do the hard yards, letterbox drops, cold calls, and doorknocking.
“In my experience the majority of off-market or pre listings are available by having strong relationships in place with agents,’’ he said.
“I firmly believe some of the best buying is off-market,’’ he said.
Mr Piper’s 5 tips for buying off market are:
– Even though it’s off market don’t forget the checks and balances. Do your due diligence such as building and pest inspections and council searches.
– Have your finances ready to go before you start searching.
“This puts you in a very strong position when ready to negotiate,’’ he said.
– Make sure you know the market and what the property is worth as 90 per cent of off market properties don’t have a price on them given they are not “listed”.
– Understand why the seller isn’t putting the property on the market. This could be as they are very private or don’t want open homes.
– Be patient. Given the property isn’t on the market the sellers might need more time to consider where to move to if living in it. Rent back options can work really well in this situation
PURCHASING a property is no easy task — there’s the house hunting, the securing of the mortgage, deciding whether it’s an investment or forever home, and the countless people trying to tell you their opinions.
So it’s no wonder that property buyers — particularly first home buyers — can fall for some common mistakes.
Here are five of the most common mistakes buyers make, according to Universal Buyers Agents Director Darren Piper.
Mr Piper said one of the biggest mistakes buyers make is falling madly in love with a home, and getting emotionally invested.
“Once a buyer starts making decisions with their hearts instead of their heads, that’s when they pay too much for a property, overlook important issues, and desperation kicks in, clouding judgment,” he said.
Mr Piper recommended, particularly for first home buyers, that enlisting the help of a buyers agent could help avoid this trap.
The sort of money involved with buying property is far greater than most other purchases in life.
So much so it can almost begin to feel like Monopoly money, and it becomes all too easy to expand your price range just a little, just in case your perfect home is waiting for a few thousand dollars more.
“This is when a buyer will fall in love with a more appealing home that is just too expensive, and desperation kicks in,” Mr Piper said.
Mr Piper said buyers should also be aware of “real estate agents who might talk you into buying a home outside your price range, which could derail your finances in the future.”
“Don’t be tempted — spending more than you need to leaves you vulnerable to potential financial shocks, including rises in interest rates or changes in future circumstances,” he said.
The home may tick all the boxes, but failing to research the area is a big mistake that could lead to a life in a great home, but in a terrible area.
Mr Piper says it pays to get to know the neighbourhood you are potentially going to spend the rest of your life.
“Research nearby schools; find out about any current or future developments; make note of public transport; and make sure you check out the local crime rates,” he said.
“A buyers agent often has an intimate understanding of property trends in each suburb, and knows all about council regulations, possible plans for redevelopment and median house prices in the area.”
The smart homebuyer will make sure they have assessed finances and needs before making the househunting plunge.
“It’s important to analyse assets, organise debts, and get pre-approved for finance before starting the journey,” Mr Piper said.
“When purchasing a property, there are many things to think about, and some of these may be a surprise to first homebuyers.”
There are more costs involved in purchasing a property than just the property itself.
“Often, buyers fail to take into account building inspections and reports, strata reports, pest inspections, and council inspections,” Mr Piper said.
“There are also additional costs involved after you purchase a home, including insurance, moving costs, inspection reports, stamp duty, council rates and transfer fees.
“A buyers agent will not only keep a buyer up-to- date with any expense that may arise, but they also have an extensive list of contacts built up over time.
“This includes real estate agents, other investors, business owners and associations, as well as building and pest inspectors, mortgage brokers and conveyancers — making the whole process a breeze.”
Tips on bidding at auction
Buyer’s agents are changing the way people are entering the property market.
Whether you are a first homebuyer or an experienced investor with multiple homes under your belt – the simplicity and stress-free process of hiring a buyer’s agent to help find your dream home is becoming more and more appealing to buyer’s of all levels.
When it comes to selecting a buyer’s agent that is right for you, Universal Buyers Agent director Darren Piper says there are six questions a property buyer should be asking.
Part of being an effective and valuable buyer’s agent is having extensive, in-depth knowledge of the property industry. Theywill use their knowledge of the industry to help you make the best decisions when it comes to purchasing a property.
A buyer’s agent should havean intimate understanding of property trends in each suburb, and know all the ins and outs of council regulations, possible plans for redevelopment and median house prices.
Look for a buyer’s agent with expert knowledge of their local market, Darren says.
“A buyer’s agent should be able to tell you with confidence which streets are the best within a suburb, and which streets you should avoid,” he says.
“They should also be switched on to any future developments that could impact your purchase.”
Darren says it is also important to keep in mind that each capital city in Australia will be in different stages of the property cycles and will have multiple property markets.
“Whether you are buying a property locally or interstate, it is worth usingan expert that knows the local market.”
This is probably one of the most important questions. Purchasing a property can be a very expensive process, with many unexpected costs arising along the way. So you want to make sure any money you are forking out is going to be worth it.
A buyer’s agent should not only save you countless hours of scrolling through real estate websites, they will also save you stress, and more importantly, money.
“From paying too much for a home, overlooking extra expenses associated with inspections and approvals, as well as costs that may pop up in the future, such as body corporate fees, council rates and insurance, the figures can stack up and leave a buyer in financial turmoil,” Darren says.
“Investing in a buyer’s agent saves a first-home buyer, or even a more seasoned property investor, not only stress but also a significant amount of money.”
A buyer’s agent should also be an expert negotiator and use their comprehensive knowledge of the property market to negotiate the lowest possible price for the buyer’s ideal home.
Check online testimonials to see if your agent has satisfied other buyer’s.
The age-old saying ‘it’s not what you know, it’s who you know’ couldn’t be more apt in the real estate industry.
According to Darren, a top-notch buyer’s agent shouldhave an extensive list of contacts built up over time – including real estate agents, other investors, business owners and associations, as well as building and pest inspectors, mortgage brokers and conveyancers.
“This means they are often presented with off-the-market opportunities, which opens up your possibilities and maximises your ability to grow your investment property portfolio, or find the perfect home for your family,” he says.
Darren says you should be confident that a buyer’s agent will know how to research how much to pay for your property?
“Ask them what criteria they use to assess properties, how they compile market data and how they conduct research,” he suggests.
Every state and territory in Australia has different licensing requirements for buying property, so its important to make sure the agency you select holds a real estate qualification for the state that you’ll be buying property in.
To learn more about the benefits of a buyer’s agent, visit www.universalbuyersagents.com.au.
Australian-owned and operated, Universal Buyers Agents is made up of an experienced and passionate team driven to ensure your future is secured financially by investing in blue chip localities. To us, it’s not about the transaction today but rather, the ten into the future.
The Universal brand was born as a result of increasing market demand for a service that was not only comprehensive but served the buyer, not the seller. In today’s fast paced industry and market competitiveness, making a mistake has increased tenfold, so don’t make one. Working with Universal Buyers Agents takes the pressure, risk, and stress off the purchase so we can focus on uncovering and buying the right property, at the right price, every time. Whether you’re looking for your first property, a development opportunity, commercial or industrial sites, land and house packages, or investments, we can advise, support, manage, or consult on a level that suits or is required.
When purchasing a property, first home buyers are like deers in the headlights and can very quickly be taken advantage of.
A common trap a buyer often falls into is putting their full trust in real estate agents, forgetting the agents are working for the seller – not the buyer.
Often, a selling agent will sniff out a first home buyer and assume they lack the industry knowledge or the skills to get a better price for their dream home.
And often, they are right.
A buyers agent works with a home buyer to ensure they get their dream home, for the best price possible.
With an extensive knowledge of the property market and expert negotiating skills, a buyers agent is able to leave emotions at the door, often saving the buyers thousands of dollars in the long-run.
Universal Buyers Agents director Darren Piper offers his top five tips to become an expert negotiator.
“Successful negotiators are assertive and challenge everything – they know that everything is negotiable,” Darren says.
“I call this negotiation consciousness. Negotiation consciousness is what makes the difference between negotiators and everybody else on the planet.”
“I am amazed by all the people I meet who can’t stop talking,” Darren says.
“Negotiators are detectives – they ask probing questions and then shut up.
“The other negotiator will tell you everything you need to know – all you have to do is listen.”
3. Do your homework.
“This is what detectives do. Gather as much pertinent information prior to your negotiation. What are their needs? What pressures do they feel? What options do they have?
“Doing your homework is vital to successful negotiation. You can’t make accurate decisions without understanding the other side’s situation.
“The more information you have about the people with whom you are negotiating, the stronger you will be. People who consistently leave money on the table probably fail to do their homework.”
“If you depend too much on the positive outcome of a negotiation, you lose your ability to say no,” Darren says.
“When you say to yourself, ‘I will walk if I can’t conclude a deal that is satisfactory’, the other side can tell that you mean business.”
“Your patience can be devastating to the other negotiator if they are in a hurry because they start to believe that you are not under pressure to conclude the deal,” Darren says.
To learn more about the benefits of a buyers agent, visit www.universalbuyersagents.com.au.
About Universal Buyers Agents
Australian-owned and operated, Universal Buyers Agents is made up of an experienced and passionate team driven to ensure your future is secured financially by investing in blue chip localities. To us, it’s not about the transaction today but rather, the ten into the future.
The Universal brand was born as a result of increasing market demand for a service that was not only comprehensive but served the buyer, not the seller. In today’s fast paced industry and market competitiveness, making a mistake has increased tenfold, so don’t make one. Working with Universal Buyers Agents takes the pressure, risk, and stress off the purchase so we can focus on uncovering and buying the right property, at the right price, every time. Whether you’re looking for your first property, a development opportunity, commercial or industrial sites, land and house packages, or investments, we can advise, support, manage, or consult on a level that suits or is required.
Associate
Associate Buyers Agent
Administration support
Buyers Agent | Sydney
Buyer’s Agent | QLD
Senior Property Manager/BDM
