an insider's guide to buying quality real estate

23
An Insider’s Guide to Buying Real Estate in partnership with EPS Property Search

Upload: alice-palise

Post on 20-Mar-2017

26 views

Category:

Presentations & Public Speaking


5 download

TRANSCRIPT

Page 1: An insider's guide to buying quality real estate

An Insider’s Guide to Buying Real

Estate in partnership with

EPS Property Search

Page 2: An insider's guide to buying quality real estate

Any advice contained in this presentation is general advice only and does not take into consideration the reader’s personal circumstances. Any reference to the reader’s actual circumstances is coincidental. To avoid making a decision not appropriate to you, the content should not be relied upon or act as a substitute for receiving financial advice suitable to your circumstances. When considering a financial product please consider the Product Disclosure Statement. Stanford Brown is a Corporate Authorised Representative of The Lunar Group Pty Limited. The Lunar Group and its representatives receive fees and brokerage from the provision of financial advice or placement of financial products. The Lunar Group Pty Limited ABN 27 159 030 869 AFSL No. 470948.

Disclaimer

Page 3: An insider's guide to buying quality real estate

Patrick Bright, EPS Property Search

Page 4: An insider's guide to buying quality real estate

• They help home and investment property buyers (not sellers)

• They don’t take fees from anyone other than their buying client (no conflict of interest)

• They guide their clients to purchase above average homes and investment properties

What is an exclusive Buyer’s Agent?

Page 5: An insider's guide to buying quality real estate

• One point of contact for buyers to be able to access the entire market.

• Allow buyers to deal with one person / buyers agent acting in their best interests not hundred's of sales agents who are not

• Good time leverage for busy people• You could hire a dud• They cost $$$. Typically anything from 1-3% of

purchase price depending on the type of service provided

Pros and cons of hiring a buyer’s agent

Page 6: An insider's guide to buying quality real estate

• Off the plan• Established• Buy renovate hold / sell• Highest and best use

New versus established property pros and cons

Page 7: An insider's guide to buying quality real estate

Moving strategies without ending up homeless

• Can you finance the buy without selling first? If yes great!

• Buy first with a long settlement (risk level dependent on what you have to sell and state of the market in the suburb your selling in)

• Sell first with a long settlement (still a bit risky in the current market)

• Be on the market “quietly” whilst looking to buy• Sell with a rent back clause in the contract

Page 8: An insider's guide to buying quality real estate

Buying investment property

• Is it ok to buy a property sight unseen?

Page 9: An insider's guide to buying quality real estate

Example ad you may come across...

• Single level 3 bed family home• Great condition – good renter, large amounts of free

flowing fresh air• Some renovation work required• North facing with good natural light• Motivated vendor – will throw in bonus car for free

Page 10: An insider's guide to buying quality real estate

Don’t believe the selling agent ads!

Page 11: An insider's guide to buying quality real estate

Another example ad you may come across…

• Two story brick home • North / East facing • Some work required• Going for a fire sale price

Page 12: An insider's guide to buying quality real estate

Don’t trust what you see online

Original Same photo altered by adding 5% light and clicking and dragging

left edge of photo

Page 13: An insider's guide to buying quality real estate

Never buy a property unseen!

Page 14: An insider's guide to buying quality real estate

Where to invest with a margin of safety

• The inner ring of capital cities • As a general rule stick to plus or minus 20% of the

median price for the location / suburb • Find the sweet spot for ROI• Supply and demand is a key driver of any market so

make sure there is plenty of demand now and will be in the future

• Stick to my 20 – 25 – 20 rule

Page 15: An insider's guide to buying quality real estate

What to buy?

• A grade – 10% of the market• B grade – 20% of the market --------------------------------------• C grade – 40% of the market• D grade – 30% of the market

Page 16: An insider's guide to buying quality real estate

Key elements of negotiation

• Build rapport• Information• Motivation – Vendor’s and Agent’s• Low need

Page 17: An insider's guide to buying quality real estate

Key elements of negotiation (cont)

• Never be the first to name a price • Terms versus price - which is more important?• Use deadlines• Take the focus off the price

Page 18: An insider's guide to buying quality real estate

• Think rock climbing• Bridge the gap• The “I love it offer”• I don’t care where you start• Put your offers in writing

Negotiation in action

Page 19: An insider's guide to buying quality real estate

What to expect at auction

What to expect at auction

• You will be nervous • Pressure for you to

bid • The blank cheque

book buyer • Do auctions get the

highest price or the second highest price?

• Don’t bid against yourself

• The reserve to be above the price guide

• A lotto outcome for the buyer and seller

• Buy well or don’t buy

Page 20: An insider's guide to buying quality real estate

Top 6 mistakes to avoid…

1. Buying without finance pre-approval in writing

2. Making a fed up purchase

3. Borrowing at your limit

4. Not conducting pest and relevant building inspections

5. Listening to friends and family

6. Relying on data reports

Page 21: An insider's guide to buying quality real estate

Don’t be shark bait.. Do your research!

Page 22: An insider's guide to buying quality real estate

02 9904 [email protected]

Patrick Bright, Buyer’s Agent

My contact details

Page 23: An insider's guide to buying quality real estate