Our process is focussed. Strategic, educational and effective.
We cut to the chase and establish via a fact finder and discussion:
- Who you are, where you are at and where you want to go.
- We examine how your current and potentially changing future personal circumstances will impact your journey
- We learn from you what your current understanding and belief systems are on how you might achieve your goals.
- We offer options to consider and educate you to expand and empower your thinking.
- We ensure you have spoken with the relevant advisors to discuss the correct structure for you. This includes the buying entity and the finance structure. If you do not have access to trusted, experienced professionals we can refer you.
- Once we have established how your foundations will look, we get about “building” the vehicle that will take you to fulfilment of your goals.
- It is only now that the specific property is relevant. Do not start with the property, then try to make it fit.
- We then search for appropriate options for you to consider, now you have a clarity and understanding on the fundamentals that all contribute to achieving your goals.
RECENT CASE HISTORY:
A young couple from Western Australia were referred to me via an interstate mortgage broker. They were looking to start an investment property portfolio. They had a pre-approval for $750 K. They had spent many weekends trouping around new estates in Perth, yet felt uniformed, under confident and simply didn’t understand how the process worked, what questions to ask and how to make a successful buying decision with confidence.
We met on Skype, to understand their circumstances and what they were looking to achieve and for them to understand how we worked and if they felt we were the perfect “fit”.
They did! They engaged our services and we spent time on their “plan”, first understanding where they were at, where they wanted to be going, their current circumstances and any likely changes into the mid and long term future. They were recently engaged and planned to marry. They also planned to start a family at some point and their jobs required they be available for potential postings to other locations
Once we looked at the bigger picture, and assisted them to understand how the mechanics of property investment worked they were able to better quantify the longer term outcome they wanted to achieve. This was a passive income of $100 K to supplement their super in about 20 years.
We sourced a selection of options that met their brief, factored in the taxation benefits, allowed for the ability to drop down to one income when they started a family without impacting their lifestyle along the way. We modelled figures well above the current interest rates and looked at property closer to $500 K than maxing out their borrowing capacity. This will allow them to continue to grow their portfolio sooner. We selected a new home in a dynamically growing new estate dominated 80% by owner occupiers, close to a new park and a short distance to an entire new railway station and train line and 5 minutes to large, vibrate shopping centre.
The clients were married throughout the construction, and were very happy with how the process unfolded. They had a very competent supportive team including their talented mortgage broker, a great builder and “Hatch Property” to hold their hand and guide them through the process. They competed construction right on Christmas and had a tenant in the first weeks of January.
Selling can be a challenging process for those who simply don’t know, understand or trust the process, or are simply unavailable, overseas, or just too busy to focus on what is required.
Our service is basically to arm you with inside info on how the unregulated real estate industry works… so you can move through this process with greater ease, confidence and better informed.
WHAT WE DO FOR YOU:
- Selection of the agent: understanding how they will compete for your business, what questions to ask them, how to compare the different responses and how to finally choose the best agent for you and the best sales method for your property in the current market.
- Someone to liaise throughout the process with all stakeholder to ensure the process is on track. We become the point of contact between the agent, lawyers, property managers, building inspectors, trades people etc. this enables you to stay fully informed yet continue your life supported through a potentially tricky process.
RECENT CASE HISTORY:
Outline of property purchase:
Interstate clients contacted me to sell a property in Melbourne. It had been purchased via a property investment marketing group in 2008 for $460 K. It was town house in a new area, off plan with a rental guarantee for 2 years at $411 per week.
After the 2 years, the rent dropped to $300 per week and had only crept up to $400 per week in 2016. They obviously had not felt the property was performing and the management, still under the same investment company, had been poor.
They engaged me to assist in selling. I contacted the management company as they also offered resale services. Additionally, I contacted four other agencies.
From the current property manager, I requested the recent rental reports and photos. Unfortunately, this led to the revelation they had nothing on file as they had not inspected the property for 18 months! They also offered a sales & marketing estimate for the property of $395 K-$420 K. I reminded them that they had sold this property to the clients in 2008, eight years before for $460 K. I received some lame real estate jargon about market fluctuations… interesting given Melbourne has performed pretty well over recent years. The sales agent also noted this was a town house, yet an area where families were the predominate demographic and preferred a house with space for kids to pay. It might have been better to advise the buyers of this in 2008!
Of the other 4 agents, only two replied, one immediately and very enthusiastically. We went through the process of questions about sales method, likely process outcome, competition in the market, marketability of the specific property with the two agents, easily selecting the most appropriate. He reminded the sellers that the strongest market sector in this location was houses, not townhouses, and while this was a great townhouse, the limited outdoor space may be a factor.
I assisted them with the engagement forms, referral to a solicitor, and liaising with the tenant who had been there 6 years and was not happy about the impending sale. The management company “forgot” to notify the tenant the property was on the market, so they were surprised to have the agent and photographer knock on the door for photos. Together, the sales agent and I smoothed the tenant’s feathers and had their total co-operation through the sales process.
The agent gave excellent feedback consistently throughout the process, ensuring the owners understood the limitations of the property as per the market response. They had a couple of questions throughout this time that I was able to assist them with so they felt secure in knowing they had someone totally on their team.
Finally, a sale was achieved, for $465 K, with an agreed delayed settlement to an owner occupier. The agent was then able to find a suitable relocation property for the tenants.
- Do not buy from a one stop shop that offers investment advice, finance and legal services and property management services.
- Always check the current market rental return when being “given” a rental guarantee.
- Ensure you buy the right product type for the location you are buying in. The product may be great, however if it is not relevant to the main demographic in the area, it is unlikely to deliver your outcome.
- Stay in touch with your property manager and make a diary note when your inspections, lease renewals, maintenance are due so YOU can chase them up if they drop the ball.
- Always seek other agents perspective before going with the current rental management agency for your sale, or their referral partner if they are exclusively Property Management.
- The biggest challenge for most real estate agents is getting leads. A little bit of competition before you sign the agent up creates your point of negotiating power and allows you to set the terms. After all, you are about to pay them a fat pay cheque for their work.
- If you found this helpful, are looking to sell your own home or an investment property, anywhere in Australia, we can help.Click here to schedule a chat to find out how.
Anyone can buy an investment property, but not everyone gets it right.SCHEDULE A CALL NOW
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