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. By understanding what you may not be aware of, we bring greater clarity to you. This will empower you and the decisions you then make.
- 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.
- We keep it simple yet powerful. A sound foundation is essential to build upon- no shortcuts here.
- Once we have established your foundations, we get about “building” the ideal vehicle that will take you to the fulfilment of your goals.
- It is only now that the specific property is relevant. We do not start with the property, then try to make it fit.
- We search many markets for appropriate options for you to consider. This is appropriate only once we have a clarity and understanding of your specific circumstances and goals.
RECENT CASE HISTORY:
A young couple were looking to start an investment property portfolio. They had a pre-approval for $750 K. They had spent many weekends trooping around new estates in Perth, yet felt uniformed, under confident and simply didn’t understand how the process worked. They were nervous at “being sold” into a property.
We met on Skype, they engaged our services and we spent time initially understanding where they were at. Recently engaged, they planned to start a family at some point and their jobs required they be available for potential postings to other locations
We took all into account, looked at the bigger picture, and they calculated the goal they wanted to achieve. A passive income of $100 K to supplement their super in about 20 years.
We sourced a selection of options that would allow them to manage financially on one income if necessary- assisted with the buying structure and modelled figures well above the current interest rates. We settled on an option $200K below their maximum borrowing capacity that gave them a strong 5% yield. This will allow them to continue to grow their portfolio sooner.
We settled on a new home in a dynamically growing new estate with an 80% ownership by owner occupiers. It was adjacent to a new park and a short distance to a new railway station, 5 minutes to a large vibrate shopping centre, schools and many lifestyle facilities. Yet to be built is a town centre with a lake, shops and community centre. Ongoing infrastructure assists values trending upwards & provides more jobs.
The clients were married throughout the construction, and were extremely happy with the process The independent building inspection we arranged at completion gave “above average” rating, and the property was promptly tenanted. Land prices have rises substantially since they began this journey.
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.
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