Negotiating property is not a single skill but an entire arsenal comprising of research, strategy, psychology and when the occasion calls for it, plain instinct. Each situation is unique and is composed of several factors including people, which lends a certain amount of unpredictability to every instance. Knowing the foundation of what makes a successful negotiation allows you to steer through unexpected occurrences, to get the best deal for you.
Buying real estate is a major, long-term investment whether it’s for business or personal goals so decisions should be well thought-out based on the right information. Increasingly, investors and home buyers are opting to hire a buyer’s agent to help them with purchasing property. The buyer’s agent or buyer’s advocate’s job is to find real estate that meets your goals and negotiate the sale on your behalf.
The property sector portrays property investment as a simple, straightforward exercise that anyone can do. Selling agents and property spruikers have dumbed down the buying and investing process for decades. However there’s ample evidence that indicates that there are many people that do not do it well.
Despite the ongoing reference to a bursting bubble, house prices in Melbourne continue to thrive. This is fantastic for those who have already entered the market, however for those who haven’t, it may seem like the concept of buying property is simply out of reach. During the September quarter, the median house price across Melbourne increased by 3.2% to $740,000 according to the REIV. In addition, there was a clearance rate of nearly 80% which is the highest number seen in 7 years.
5 reasons why as a property investor you need a Financial Planner that specialises in property investment - By guest blogger Sarah Rogers, Principal Financial Planner & Property Investment Adviser of Profolio.
Many years ago now, before I even worked in the finance world, I was a property investor and I was looking for someone that could give me advice around that and also how my properties fit into my overall plan. After going to a couple of Financial Planners I realised they weren’t able to help me with my full financial picture including properties, and didn’t share my excitement around investing in property. If anything, they tried to talk me out of it.
Back to the current day, and more property purchases later, Profolio is here, and aims to fill the gap in the market property investors have been screaming out for.
Your team of experts are the most important people in your financial life. This includes your Accountant, Lawyer, Mortgage Broker, Financial Planner, and of course Buyers Agent. You need to ensure your team is working together and working towards the same common goal; supporting you. You need to be very selective when building your team and ensure you choose professionals that specialise in areas that are important to you, like property investment.
Click Here for 5 reasons why you should choose a Financial Planner that specialises in property investment.
So you’ve decided to get into real estate and you’re beginning the preparations to acquire your first property investment in one of Melbourne’s suburbs. You’ve got professionals or families in mind, who want a home situated in an area that’s serene where they can relax after work. At the end of a long day, they don’t want to be reminded of the office with the sights and sounds of a skyscraper jungle. That makes the middle to outer ring suburbs the perfect location for a home.
A qualified and skilled buyer’s agent will discuss your risk profile and that of your strategy with you before you buy. If you want to buy property in Melbourne, then consult with a local expert. Due to inherent market knowledge, a buyer’s agent in Melbourne is able to give you important local insights, compared with an advocate based elsewhere.
A common problem for investors is keeping the value of their portfolio up-to-date and this is especially true for investors in the current Melbourne real estate market. The industry is experiencing a very robust period and prices are increasing as more foreign nationals gain interest in acquiring property in this world-famous city. There are several ways to make sure you know the current value of your investment property in Melbourne.
If you are contemplating whether or not to utilise the services of a buyer’s agent in Melbourne, when selecting a property to invest in, keep in mind that real estate holds a unique category when it comes to negotiating. It entails a lot of knowledge, experience and a certain set of skills to clinch a successful deal. On top of that, competition is tough in desired locations and the process is often emotional. Negotiating requires sharp analytical skills, adequate understanding of human psychology, great self-control and a strong intuition.
Getting an education in real estate may be a viable option as opposed to hiring a licensed buyer’s agent or advocate but it’s not always a practical alternative. To achieve the required level of knowledge can be a full time commitment and many people simply don’t have the luxury of time.
You may not realise it but your investment property in Melbourne could be providing you with more tax deductions than you realise. More and more property owners are learning the different ways to reduce property related taxes legally. Are you already one of them? How long have you owned your property? There are dollars to be saved and it’s not too late. This article might give you a helpful tip or two.
Entering the Melbourne real estate market brings a mix of emotions - the excitement of living and owning a home in such a vibrant city and the apprehension of the cost. Whether you want to buy property in Melbourne or another part of the country, scoring your own home can be either a fun or stressful experience. In many cases it’s likely to be a bit of both, even if it’s not your first home.
Deciding whether or not to invest in the Melbourne real estate market is a tricky decision to make. The city’s popularity worldwide is growing and with good reason. After consistently ranking as one of the most liveable cities in the world for years, it’s no wonder Melbourne is receiving global attention. Investors and foreign buyers are entering the local real estate market, intensifying competition. As a result, it continues to drive property prices up. Now residents are faced with a big question: is this the right time to purchase a property?
Why would you want to buy property in Melbourne? Answer: why wouldn’t you? Whether it’s a home to live in or an investment, there are loads of people out there itching to find property in this beautiful city. Brad Esposito, a BuzzFeed reporter in Australia said it well, “To live in Melbourne is to curse everywhere else you live for the rest of your life.”
Property investment has long been considered a reliable long-term investment for people in Melbourne and across Australia. For some, purchasing and managing investment properties is their core investment strategy, whilst for others it forms part of a broader investment portfolio. Before you can take the plunge, here are simple tips to guide you.
The popularity of real estate investments has been steadily increasing in recent years. This type of investment has become a common investment vehicle and has proven to be an avenue for creating wealth.
While the real estate market brings about many opportunities, purchasing and owning a property entails a lot of hard work. To get you started, here's a quick look at three types of real estate investments.
What is a buyer's agent?
It’s a term you may be familiar with, but do you know what a buyer’s agent actually does? Buyer’s agents are licensed professionals who find, evaluate and negotiate a property purchase on behalf of a buyer. They manage the buyer’s interests ensuring the buying process is smooth and leads to a positive outcome.
Buying a home is one of the biggest decisions you will ever make and also one of the most rewarding. There are a range of online tools available to help you find your dream home, however knowing when to purchase a home is a challenge. There are a number factors to take into consideration and one of them is timing. Timing is very important when buying real estate. From a market perspective, you should aim to purchase a property at a time when the market is trending or predicted to trend positively. In addition, it is important to consider your current employment and lifestyle situation to identify if the timing is right for you.
Investing in property can be a great long-term investment, whether it’s for personal use or as a source of income. However, finding the right property investment in Melbourne that matches your financial goals is not easy. Given the wide range of options, choosing a property to invest in can be overwhelming.
Choosing the right property to buy is no easy task and can be overwhelming for first time buyers. Lack of real estate knowledge is one of the main reasons why home buyers opt to hire agents to assist them. They provide you with the information you need, to make an informed property purchasing decision. However finding a good agent is a challenge, given the number of buyer’s agents available.
Property investing may look easy but things aren’t always what they seem. Buying investment properties require a huge sum of money you simply can’t afford to waste and legal processes which may be too complex for you to deal with on your own. What can make things more confusing is that you may get conflicting advice.
If you have been considering buying a home, this question may have been one of the first to come to mind. While you can always choose to conduct the research, selection and purchasing on your own, it may not always be the best option. This is especially true if it’s your first time purchasing property.
I attended, bid and secured a property for my client this weekend in a prestigious inner bay side suburb of Melbourne. There were approximately 100 people attending and 3 bidders in total.
While happy with the outcome for my client, I felt for the other bidders, and those that were knocked out as soon as I presented my first bid at $2.1 million. I knew from the time I appraised it that it wasn’t worth less than $2.4 million and it wasn’t a surprise to me when the property was declared for sale at $2.425 million. I secured it for my client at $2.605 million.
Risk is the extent to which you are willing to expose yourself to loss. As individuals, when it comes to money, some of us may be more or less conservative than others. Risk profiles can range between conservative, cautious, prudent, assertive and aggressive. Click here to read more
The challenge with buying property in a rising market is to keep pace with the market and to and adjust your buying strategy accordingly, and if necessary, quickly.
It’s not helped by the fact that in Victoria, when selling agents recommend the auction method to their vendors, the campaign inevitably starts off with either no disclosed price or bait pricing. This is where the campaign pricing starts low and then increases each week according to ‘buyer’ feedback. Click here to read the full article
I had a conversation with an acquaintance recently about her challenging financial position, and her strong desire to buy a home for herself on a limited budget. She was disheartened until I casually mentioned a concept for her to consider, which gave her hope for the future and inspired her re a positive outcome.
You will have seen this weekend’s auction clearance rates record. Melbourne’s clearance rate jumped from 69.2 percent last weekend to 79 percent this weekend. This is also a reflection of it being the first major auction weekend post the January holiday period.
With interest rates still low, first home buyers, investors and up-graders in the market, now appears as good a time as any to buy property. Especially in the lead up to the Easter period late April.
Petition to stop under-quoting
Miriam Sandkuhler is spear heading a campaign, along with other prominent real estate agents, to put an end to this deceptive practice.
I've started the petition "The Hon. Heidi Victoria,The Hon. Dr Denis Napthine, The Hon.Daniel Andrews,The Hon. Robin Scott: VIC Government; Make it compulsory to advertise auction reserve prices to stamp out under quoting." and need your help to get it off the ground.
However we need your support to secure 1000 signatures to be able to present the petition to the government. Will you take 30 seconds to sign it right now? You can support the petition by clicking here to sign and share it
Property Prosperity is a step by step guide on how to purchase high performing investment grade property while maximising return and reducing risk in the process. As a profesional buyer advocate I provide examples in the book of how investors are vulnerable to free advice and explain what that's about.
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