Ang Kalatas October 2016 | Page 21

THE MESSAGE . BRINGING INTO FOCUS FILIPINO PRESENCE IN AUSTRALIA www . kalatas . com . au | Volume 7 Number 1 | OCTOBER 2016 PROPERTY MARKET

21

How can a buyer ’ s agent help you

Investing in property is a big decision that can keep even the most seasoned property investor awake at night . How do you know if you ’ ve got your investment strategy right ? How can you make sure you ’ re choosing the right property ? Where can you find the time to do the necessary research ? What is the right price to pay ? So many questions which leave you unease .

A good buyer ’ s agent is the property investor ’ s secret weapon . They provide professional guidance on every aspect of your property investment journey , with the objective of saving you time and money . A buyer ’ s agent can help you take a more professional , balanced approach to your property investment activities , removing the emotional aspects of the process and saving you from the natural human tendency to make unwise , impulsive decisions under pressure .

WHAT DOES A BUYER ’ S AGENT DO ?

Buyer ’ s agents specialise in representing a buyer ’ s interests during a property purchase . Whilst they are most commonly used by property investors , buyer ’ s agents are also frequently used by families searching for exactly the right home , and people moving interstate or overseas , making the process much easier by doing all the leg-work and narrowing down the options .

Buyer ’ s agents usually offer differing levels of service , depending on your requirements . The full service covers every aspect of the property investment journey including :

• Formulating an investment strategy that maximises your funds ;

• Searching for suitable properties to fit your buying strategy and budget ;

• Researching every aspect of a property to ensure profitability ;

• Arranging inspections with vendors and real estate agents ;

• Negotiating a price and terms of sale ;

• Bidding at auctions on your behalf ;

• Co-ordinating your professional team – solicitors , mortgage brokers etc ;

• Ongoing service to help you establish a complete portfolio .

Getting the property research and selection process right is arguably the most important part of your property investment journey . It certainly takes the most amount of time and getting the right information requires a certain amount of know-how too . A professional buyer ’ s agent knows which questions to ask and where to look for the answers . They can often access information from developers , councils and other relevant bodies that is not readily available to the ordinary consumer .

However , you don ’ t necessarily need to engage the full services of a buyer ’ s agent . You can also engage a buyer ’ s agent just to do research for you , to negotiate a price for you , or to bid for you at an auction if you would rather not do it yourself . This can be a good idea if you are nervous , inexperienced , you can ’ t attend the auction yourself , or you feel you may get carried away by the auction process and pay too much .

HOW MUCH DOES A BUYER ’ S AGENT COST ?

There are many buyer ’ s agents and the cost will vary according to the agent you choose , your location and your requirements . Qualified , professional buyer ’ s agents generally charge between 1.5 – 3 % + GST of the purchase price of the property for their full services , however this can often be negotiated in favour of a flat fee and savings may be obtained if you are planning on purchasing multiple properties . When providing a research service only , a negotiating service only , or a bidding service only , your buyer ’ s agent will usually charge a fee for their time . Again this will vary according to the agent , the location and your requirements . You can generally expect these services to cost around $ 1,000 + GST depending on how much of their time you require . If you are purchasing a property for investment purposes , the cost of a buyer ’ s agent is generally tax deductible as are most of the professional services you will require as part of the process .

HOW DO YOU FIND A GOOD BUYER ’ S AGENT ?

A good way to locate a great buyer ’ s agent is by word of mouth – there ’ s nothing like a recommendation from a friend , colleague or trusted business advisor ( like your mortgage broker ) to make you feel confident about someone ’ s credentials . However , you can also find some reputable buyer ’ s agents through the Real Estate Buyers Agents Association of Australia ( REBAA ) website . Sometimes , outsourcing is a sensible option , engaging a buyer ’ s agent can save you hours of time and loads of stress . If you ’ re new to property investment , then a buyer ’ s agent can also be invaluable in helping you to avoid costly mistakes . When you do find a property you want to buy , all the hard work in locating it can easily be lost in the

PROPERTY | FINANCE

JERONE BALAGTAS

Jerone . BALAGTAS @ onelending . com . au

final hurdle – the purchasing process . Having an expert on your side to negotiate the price you need , or to bid for you at the auction , can reduce the risks and make all the difference . Using a buyer ’ s agent is one case where outsourcing can take a lot of the frustration out of the process !

I personally have used the services of a buyer ’ s agent , the value and return on investment I benefited from that transaction outweighed the fee I had to pay them .

For more information , or to get your property investment finance in place , give me a call . I ’ ll be happy to help .

Jerone is a local successful Filipino mortgage broker part of the One Solutions group , he has 15 years experience in the accounting / finance / banking industry . He walks the talk as he is a successful avid property investor himself . Jerone encourages anyone to contact him regarding questions pertaining to investments and finance , e-mail at Jerone . BALAGTAS @ onelending . com . au or 0439 594 899 . Jerone can help you with your home loan needs and assist with financial planning .