Newsletter - Inner Circle August 2018
Inner Circle
How can you trust a buyers’ agent is working for you?
You may have noticed some recent press around ‘double agents’ in the property industry, following warnings from the Real Estate Buyers Agents Association of Australia (REBAA) about potential conflicts of interest from these operators. Essentially this refers to real estate agents ‘double dipping’ and blurring the lines between whether they’re acting for sellers or buyers, particularly with some agencies expanding their services to incorporate both selling and buying as the market quietens a little.
In my experience, this phenomenon of ‘double agents’ is not a new one. It’s always been an issue where selling agents masquerade as ‘buyers agents’ or ‘buyer managers’, and pretend to provide a buyers’ agent service at no cost.
This is deceptive and misleading, and can be worrisome for buyers looking at using a genuine independent buyers’ agent. You want to know you can fully trust the person you are seeking advice from, and that they will act in your best interests – and only for you.
To ensure you are getting advice from a completely independent buyers agent, who will act only in your best interests – such as Property Mavens - buyers need to ask the right questions, including:
- How and who are you paid by – the vendor or the buyer? If it’s the vendor, they are acting as a selling agent, so they’re not a genuine, independent buyers’ agent. Their job is to drive the property price up, not down.
- Will you find me properties that are not listed for sale with your agency? If the answer is no, they are a selling agent; not a genuine independent buyers’ agent. Their job is to sell the stock their firm and associated offices have listed, so they aren’t independent.
- Do you act as a buyers’ agent full time or are you a selling agent who ‘dabbles’ in buyers ‘agency? If it’s the latter, they have a selling agent transaction mindset (which is dangerous for buyers) and not a consultative buyers’ agent mindset (which will protect the buyer).
Just to reiterate, Property Mavens are a licensed and completely independent buyers’ agency, acting only in the best interests of buyers . We pride ourselves on our credibility and strong track record in our purchases for our clients.
Property Investors Awards 2018
On a related note, we’d like to share some exciting news with you this month – we’ve been named as a finalist for Your Investment Property’s Property Investors Awards 2018 in the Buyers Agents category!
The Property Investors Awards seek to establish a benchmark for excellence in the industry, allowing investors to reference Australia’s top performers and what they’re doing right.
It's always a privilege to be nominated for an award. We pride ourselves in supporting our clients to achieve their desired outcomes with as little stress as possible, while protecting their best interests at all times. The winner will be announced on August 30 – wish us luck!
If you want help finding an investment-grade property in Victoria – either in Melbourne or the regions - contact us for some advice today.
Cashed up downsizers are active. How will this affect other buyers?
Last year I told you about what I term ‘Cashed Up Baby Boomers’ (CUBBs) who have cash to burn when downsizing and are edging out other buyers to take centre stage. They’re not affected by tougher lending conditions like other buyers as they have cash and can buy unconditionally, and they can outbid the competition.
These cashed up downsizers have recently become even more of a driving force in the market since July 1, when new Government rules came into effect allowing eligible homeowners over 65 to contribute up to $300,000 each to their superannuation from the sale of their home as a one-off to take advantage of tax savings.
As they gather strength, it’s going to be tougher for first homebuyers, upgraders and rentvestors to compete with cashed up downsizers, particularly for those looking to buy the same type of home, with smaller houses and single-storey units and villas most in demand amongst downsizers. This is where the support and expertise of working with a buyers’ agent can make the difference between buying or missing out. A buyers’ agent can access off-market property and knows how to use buying strategies to secure property for clients under competitive circumstances.
While downsizers active in the market will create greater competition for affordable properties, on a positive note, the fact that cashed up downsizers are, in fact, downsizing, means the supply of larger homes for younger families could increase. This will create more movement within the market, with potentially more activity amongst upgraders, and with more supply of these properties on the market it may mean lower prices. In the past downsizers have been reluctant to sell the family home due to barriers such as high property transaction costs, but the fact that they can now contribute a significant chunk of the sale funds to super has given them an incentive to make the move.
For more information or advice on the Melbourne market, contact us today..
One of our clients recently discovered first-hand how a buyers’ agent can help a buyer to compete against cashed up downsizers.
After missing out on two properties previously, we helped Amy to first modify her brief to buy an investment property for rentvesting (where you buy an investment and rent your own home) rather than a home to live in, and then to successfully purchase a suitable asset.
The property, a double storey 2 bedroom 1 bathroom villa, in the high-performing suburb and was purchased before auction in the face of strong downsizer competition. What’s more, we purchased below Amy’s designated budget.
If you want to benefit from the advice and expertise of a buyers’ agent, click here to book a time with us to discuss your requirements. It’s 100% obligation free.
Thornbury
One of our interstate clients, Rob, wanted to buy an investment-grade property within his tight budget.
Not only did we deliver on this requirement, but we identified and purchased a very successful asset for him, meeting his goal of achieving strong capital growth – and then some – with the property experiencing significantly higher growth than the overall Melbourne market. In just two years it has risen in value by 20%, compared to just 13.2% for the rest of the market over the same period.
The fully-renovated 2-bedroom, 1 bathroom single fronted house, located in the highly sought after suburb of Thornbury, was close to amenities and within 7 kilometres of the Melbourne CBD. It was secured after auction and well within Rob’s budget.
Rob is now a proud Melbourne property owner, with confidence his property will continue to perform for many years to come, helping him to continue building his wealth.
If you want to invest or buy the right home for your budget, click here to book a time, or call us for a chat about securing your financial independence.
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