Buyers Agents In Sydney Wealth Creation Fundamentals

Here is a summary of our Buyers Agents In Sydney Wealth Creation Fundamentals. These seven strategies are not new, however they are certainly worth re-enforcing:

1. Pay yourself first: Put aside 10% of your gross income into an interest bearing deposit – before you pay any bills.
2. Use the power of compounding: Compounding simply means you earn interest on your (already earned) interest. Compound interest is one of the most powerful wealth building strategies available.
3. Invest to make money NOT for the tax benefits: Tax considerations should never be the main reason to invest. Any investment MUST stand the ‘profit-test’.
4. Understand the link between ‘risk’ and ‘return’: In general terms, the higher the return, the higher the risk.
5. Avoid rental guarantees:  When a property developer or seller offers rental guarantees, it often means their property is difficult to sell. What happens when the guarantee expires?
6. Pay off non-tax-deductible interest first: While tax benefits should never be your main reason for investing, if you have non-tax-deductible debt, pay it off first
7. Keep a buffer aside for emergencies: No matter what type of investing you’re into, always keep money aside for a rainy day.

These are our Buyers Agents In Sydney Wealth Creation Fundamentals. We did not invent them – rather they are strategies that have been proven to work throughout history.

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Buyers Agents In Sydney Eliminate Property Mistakes

This short video demonstrates some of the fundamental reasons it makes good sense to use Buyers Agents in Sydney for your property purchase.

Click here to watch the video.

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Buyers Agents In Sydney Show How To Create Wealth In Australia’s Rich Property Market

Buyers Agents in Sydney show how to create wealth in Australia’s Rich Property Market and demonstrate breakthrough property investment strategies that offer property buyers the opportunity to invest in Australia’s property market and enjoy the long-term financially rewarding benefits it has to offer.

Investing in real estate is a well proven method for making money and increasing your net worth in all economic climates – with a few caveats. Your profit will depend on your knowledge, your hard work and your ability to plan. As our Buyers Agents in Sydney point out, real estate investment isn’t a magic formula.

No matter how easy some so-called property gurus make it look, it’s not a get-rich quick scheme. It could take months before you buy your first property, years before you sell one, and longer before you’re realising a consistent, comfortable income. As one major real estate investor once said, “An overnight sensation in the real estate market is one that takes five years.”

Finally Buyers Agents in Sydney show how to create wealth in Australia’s Rich Property Market.  These strategies offer a steadfast secure way to access the best property deals available today in the Australia market place.

Investing in real estate is a career choice with potential profit that is only limited by the boundaries you impose on yourself – and that’s how you have to treat it. That means that it’s up to you how much you make.

You control your profits by learning all you can about investing in property, studying loan structures, understanding the psychology of buying and selling and knowing the rules and responsibilities of renting for investment.

The bottom line is property investment has proven to be profitable over decades – even centuries.

Buyers Agents in Sydney show how to create wealth in Australia’s Rich Property Market and offer 8 Critical Tips & Reasons to invest in real estate:
1. If you invest in property, use a Licensed Real Estate Buyers Agent because they act in the buyer’s interest and can save you thousands resulting from their ability to estimate the correct selling price of properties and negotiate the best deals.
2. Even in the toughest of markets and economic times, rental prices seldom drop by more than a few percent.
3. Always deal with someone committed to your success and who has a unique approach to property acquisition ensuring your goals are achieved through high capital growth real estate.
4. Get to know your Real Estate Buyers Agent – even better still, get to know Buyers Agents in Sydney. Your Buyers Agent can often steer you toward owners who have to make a quick sale and are willing to take a lower price for ready cash.
5. Learn to recognise a good investment property – one that needs only minor cosmetic improvements, and is in a great location – you’ll find a healthy profit.
6. Know your market – from the inside out. If you take time to gain neighbourhood/local knowledge, it can help you take advantage of unexpected ‘blips’ in the real estate market.
7. Learn to negotiate without being condescending. People would rather sell to someone they like – so be friendly, helpful – yet know and be firm on your highest price.
8. Get pre-approval for a loan so you can offer a quick sale. Some buyers will accept a lower price when you offer quick settlement.

So there you have it.  Our Buyers Agents in Sydney show how to create wealth in Australia’s Rich Property Market with 8 Critical Tips.  Of course there are many additional tips we could discuss, however the tips above will go a long way toward helping you achieve your property investing goals.

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As A Property Buyer You Must Know The Purchase Price

As a property buyer you must know the purchase price of the property you intend buying. There’s an old saying in real estate…you make your money when you buy.  Our Buyers Agents in Sydney can quote numerous examples where this has proven to be true.

This article from Your Investment Property provides one of the most comprehensive discussions I’ve seen on pricing your property purchase.

As A Property Buyer You Must Know The Purchase Price

Knowing how to value a property is an essential part of the investment game.

When it comes to buying, you’ll want to know the value of your target property to ensure that you’re not paying over the odds, and when selling you’ll want to know how to set your price expectations realistically.

Appraisals

If it’s an existing property that you’re looking to sell, your first port of call may well be a real estate agent’s appraisal.

The good

The good news is that appraisals are free, as it’s all part of the agent’s plan to get your business. And, if you’re dealing with a realistic and experienced agent who knows the area well, then their assessment of how much your property could sell for shouldn’t be too far off the mark.

“If you’ve got a real estate agent and a valuer – assuming both are coming at it with the same intention – both will come up with the same figure,” says Herron Todd White certified practising valuer Kieran Clair.

“A valuer will say that your property’s worth between x and z, and the valuation is y – in the middle. A real estate agent who’s worth his salt will say your property’s worth between x and z, ‘but I’m going to list it forz plus 5%. And if you mow the yard, tidy up the spare bedroom and give it a paint, I reckon we can give it a nudge’.”

The bad

WBP Property Group CEO and certified practicing valuer Greville Pabst warns, however, that sales agents who are hungry for your custom may falsely raise your expectations.

“If you’re contemplating selling your home, and you engage three local agents to come round and give you an appraisal, the motivation from the agent is to provide you with the highest price. And it’s human nature that you think that your property is worth more than what it might be,” he says.

“Many people are thus inclined to choose the agent that gives them the information that they want to hear.”

Auction day then comes around and the agent can blame poor weather, or say that the interested parties have failed to show “and then they start to squeeze the lemon and condition you into what the real price is.”

The ugly

It’s also worth noting that the real estate agent that you’re dealing with may have limited experience in the field of appraisals.

“That person may not be a fully-licensed agent. They may just have an agent’s representative’s license, which means that they can act as a real estate agent and give appraisals, but they’ve only done a six-week course and prior to that they may have been selling washing machines or cars,” says Pabst.

“So there is a real difference in qualification in that a valuer must first have a bachelor of business degree in property, which is a four-year course, and then must have a minimum of 12 months’ practical experience in the field before he or she can then be qualified as a certified practising valuer.”

[Read on...] to learn all about other property valuation methods including automated valuation models, desktop valuations, kerbside valuations and full valuations.

Are you looking to buy real estate?  As a property buyer you must know the purchase price to avoid paying too much.  If you pay more than the property is worth, you will continue to pay for it ‘BIG TIME’ for many years to come.  Let us know your experiences by leaving a comment below.

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If You’re A Serious Property Buyer, Now Is The Time To Act!

If you’re a serious property buyer, now is the time to act.   If you want to make serious money in real estate, get in before ‘the herd’.  You make the real money when you buy so don’t do what 95 percent of folks do and wait until the real estate market is ‘firing on all cylinders’.  Don’t follow ‘the herd’.

It’s Question Time:

Q1. Did you know that less than 5% of Australians ever achieve financial security for themselves and their families?  Those Australians who do, are able to make their own lifestyle choices and live their lives the way they want; while those who don’t continue to work (often at a job and/or for a boss they despise).

Q2. Did you also know that 95% of Australian take a passive approach to investing their hard-earned money?  In other words they hand over their money to someone else and wait to hear the “good news” OR the (far more common in recent times), “bad news”.

Would you rather be part of the 5% in control of your own financial destiny OR leave your destiny to the whims of others?  I know which I prefer!

 If You’re A Serious Property Buyer, Now Is The Time To Act!

Assuming your preference is to take control, you need to focus on the one thing that changes everything – make a decision to take action.

This is where we can help.  Here is just one example of a recent ‘dual income’ property deal (inSydney) we completed for one of our clients:

Property purchase                                            $291,500

Construction of Garden Studio                         $100,000

Buying Costs                                                     $  27,500

TOTAL                                                              $419,000

Rental Return:

• House ($370 per week)                                $  19,240
• Garden Studio ($300 per week)                   $  15,600

TOTAL                                                               $  34,840

Return on investment (gross)                              8.3% pa

The result is ‘positive cash flow’ and very good capital growth.

This client’s strategy is to purchase 6 ‘dual income’ properties – which should enable them to retire in approximately 7 to 10 years.

So now you have two choices:

1. Continue doing what you’re doing and achieve that same results  OR
2. Do the one thing that will change everything – make a decision and take action.

If you’re a serious property buyer, now is the time to act NOT tomorrow, next month or next year. Yes there is some level of risk, however when you know what you’re doing, the risk is minimised while the return is maximised.

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More Good News For Property Buyers

It’s great to hear more good news for property buyers, especially in a marketplace where the media likes to (stating the obvious)…sell newspapers, magazines, TV shows, etc –  ’doom and gloom’ headlines are understandably flavour of the month.  As I’ve stated previously, many (if not the majority) real estate reporters are simply not qualified to report.

This article by Michael Matusik (Hotspotting.com.au) offers a more balanced view and certainly reflects what we are seeing in the market-place every day of the week.

More Good News For Property Buyers

Let’s have some good news.

Yes, there is some out there.  It isn’t making the headlines, but it is out there nevertheless.

Here are seven positive points to help you make it through your real estate day.

1. The vacancy rate is tight.  In most capitals and major regional markets it remains under 3% and is much lower in Brisbane, Sydney, Perth, Canberra and central Queensland.  Rents growth is starting to accelerate and we know of numerous examples where over 30 rental submissions are being received for vacant rental dwellings across Brisbane.

2.Sales have improved since mid-year and those vendors who meet the market are selling – and now, often quickly.  It is still a buyer’s market – with the high supply of stock for resale – ensuring that you need to realistically price and market your property well in order to make a sale.  Investors are starting to take their properties off the market and are renting them out again, as they are attracting good rental yields.

3.Last year’s interest rate drop is having some impact – with the number of owner-occupier loans up 2% in December.  Housing investment loans rose 7.5% in December, after a 2.7% rise in November.  First home buying activity is currently at a two-year high.

Generic prices might be still falling but there are signs that the housing sector is starting to turn the corner.  The latest housing finance data provides a degree of encouragement.  Home loans have now increased for nine consecutive months and the investor market is doing the bulk of the heavy lifting.  We have been saying for some time that it is the investors who will get the housing market back on its feet.

4.Hamilton Harbour – one of the first major Queensland apartment projects to face settlement since the GFC – is settling well.  No, that isn’t strong enough – it is going great guns!  I nearly said gang-busters, but that might be taking it a bit too far.

At the time of writing, 89% of the 435 apartments sold since early 2009 have settled, with an overall 95% success rate likely by the end of this month.  We originally wrote about Hamilton Harbour in July last year, stating that it should be on the industry’s “must watch” list; it was a litmus test for the Brisbane market – a beachhead, if you will.  Sadly, few seem to be watching, and nor are the media writing about it.   This is big news for Brisbane-town.  Other, lesser projects (if you ask me) also appear to be settling well.

The average price of a settled apartment in Hamilton Harbour is $526,000, with just over $200 million worth of property settled so far.  Over 220 apartments have been leased in both the towers since late November last year.  The average gross rental yield – based on evidence to date and being rented out for 50 weeks per annum – is 5.3% across the investment stock.  The one-bedroom and one-bedroom with study product are achieving the higher yields.

[Read more...] and discover Matusik’s final 3 positive points to help you make it through your real estate day.

Isn’t it great to hear more good news for property buyers AND read factual information that reflects the logic of the current real estate market.  We’re always interested in your opinion so let us know your thoughts by leaving a comment.

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Our Buyers Agents In Sydney Agree The RBA Should Not Control Banks

The Reserve Bank of Australia (RBA) is responsible for some serious economic issues in Australia, however our Buyers Agents in Sydney agree the RBA should not control banks and what they do in terms of interest rates.  Our banking system is strong and that is a good thing – especially given the turmoil surrounding banks in the US and many parts of Europe.  In fact a strong banking system inevitably enhances a strong economy.

In this article by The West Australian, RBA Governor Glenn Stevens explains why it is not their job to instruct the banks on interest rates or any other business decision.

Our Buyers Agents In Sydney Agree The RBA Should Not Control Banks

Reserve Bank of Australia (RBA) governor Glenn Stevens does not believe it is the job of the central bank to tell retail banks to take a hit on their profits so they can offer lower lending rates.

Mr Stevens told federal politicians during his six-monthly hearing that interest rates are about where the RBA wants them, even after taking into account the banks’ decision to lift lending rates independently in February.

The decision that raised the big banks’ standard variable rates by six to 10 basis points, after the central bank had left the cash rate unchanged earlier this month, caused uproar among the community and politicians, given the banks’ profitability.

But Mr Stevens says it is not for him to set their lending rates.

“I’m not sure there is a role for the Reserve Bank really in jawboning bank shareholders to accept lower returns on equity,” he told the hearing in Sydney on Friday.

“If it is a social judgement that should happen, I don’t think it is for us to make. I think that would be for the political process to do.”

But he said you need to be careful that once you start telling one industry what they can charge, you don’t do the same to other businesses.

“That’s not really the kind of economy we have,” he said.

The central bank left the cash rate unchanged at 4.25 per cent at its February board meeting, having cut it by 25 basis points at both its November and December meetings, cuts which the banks passed on in full to their customers.

Mr Stevens said he had actually been a little surprised when banks passed on all the December cut.

Of the banks’ current interest rates, he said, “These rates are roughly where we think is appropriate for the circumstances we face.”

[Read on...] to discover what Mr Stevens thinks about bank profits.

While we disagree with many decisions made by our banks, particularly issues such as huge staff reductions and exorbitant fee structures, our Buyers Agents in Sydney agree the RBA should not control banks lending policies or general business decision making.  Let us know what you think by leaving a comment below.

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Buyers Agents In Sydney Support Residex

While our Buyers Agents in Sydney support Residex that the Reserve Bank of Australia (RBA) got it wrong, while ever there is freedom of speech inAustralia (and let’s hope that never changes), no matter what the RBA does in terms of interest rates, it can never please everyone.

Buyers Agents In Sydney Support Residex

In an article (Released 10 February 2012) from Residex, John Edwards believes the RBA missed an opportunity to help move the housing market forward. John also wonders whether the decision was a challenge to the banks to identify the margin of increase they need to cover funding costs before they go about reducing rates.  However as we all know, banks have increased rates independent of the RBA AND that is a concern – particularly given that interest rate policy is the RBA’s primary tool to manage economic supply and demand.

If the banks choose to ignore interest rate movement by the RBA (and it appears that’s the way their heading), the RBA loses it’s only real tool to manage monetary policy.  The only alternative is for the Federal Government to stop the rhetoric and take action by introducing some form of interest rate control directly linked to RBA monetary policy.

While Buyers Agents in Sydney support Residex and the decision is likely to cause further negative headlines regarding the housing market, there is some good news — John expects a rate cut by as much as 0.5% by May this year.  John also believes – as do we – there are some wonderful bargains to be had by astute property investors.

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No Rate Cut Is Good News For The Property Buyer

It may seem like a strange statement, however in our minds no rate cut is good news for the property buyer.  Today’s announcement by the Reserve Bank of Australia (RBA) is further confirmation that (right now) things appear to be stabilising/improving – particularly in the US and Europe.

No Rate Cut Is Good News For The Property Buyer

Read Governor of the RBA Glenn Stevens announcement who is of the opinion that Australia’s growth is well on track.

No Rate Cut Is Good News For The Property Buyer

Statement by Glenn Stevens, Governor: Monetary Policy Decision:

At its meeting today 7 February 2012), the Board decided to leave the cash rate unchanged at 4.25 per cent.

Information becoming available since the December meeting confirms that economic conditions in Europe were weakening late last year, with risks still skewed to the downside. Reflecting this, most forecasters have lowered their forecasts for world GDP growth this year to a below trend pace. That said, recent data from the United States suggest a continuing moderate expansion after a soft patch in mid 2011. Growth in China has moderated as was intended, but on most indicators remained quite robust through the second half of last year. Conditions around other parts of Asia have softened. Commodity prices declined for some months to be noticeably off their peaks, but over the past couple of months have risen somewhat and remain at quite high levels.

The acute financial pressures on banks in Europe were alleviated considerably late in 2011 by the actions of policymakers. Much remains to be done to put European sovereigns and banks on a sound footing, but some progress has been made. Financial market sentiment, though remaining skittish, has generally improved since early December. Share markets have risen and term funding markets have re-opened, including for Australian banks, albeit at increased cost compared with the situation prevailing in mid 2011.

[Read more...] to see Stevens ‘take’ on the Australian economy.

Are you struggling to meet your mortgage payments?  If you were hoping for a third consecutive interest rate cut, you would be disappointed and more than likely are not convinced that no rate cut is good news for the property buyer.  Let us know what you think by leaving a comment.

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