Freer Property and Finance
Save time, money and stress
Why engage Freer Property and Finance ?
To Buy the Right Property at the Right Price....... Just because a property is new, near a city or CBD doesn't necessarily mean that you must pay a premium nor is it necessarily a 'dud' just because a property is older, or in a remote location. Some of the properties that are performing well now in Sydney for example are in the middle ring suburbs. Up to 40% of properties sold are not advertised to the public as some sellers require a quick sale or do not want the expense and inconvenience of going through a lengthy auction process. We are trained in negotiating price. Vendors often prefer dealing directly with companies such as Freer Property and Finance (FP&F) because they know that we represent serious qualified buyers who can make a quick decision when presented with the right opportunity. To find the Right balance of cash flow and capital growth - All properties tend to fall into one category or the other so it is important to understand this 'trade-off' in optimising a match for our investor clients.
In order to correctly evaluate a potential 'cashflow positive' property one needs to base valuations on the realistic, long term reliable cashflow- not the type of cashflow that would come to a stop the moment a mine/ local industry closes down or slows. Property investors generally profit the most by purchasing the right (established) property rather than trying to become developers. Buying the right property carries far less risk and typically generates a higher capital return. We have been recommending purchases a quality property in a higher capital growth area, such as a one or two-bedroom apartment/3BR house in Sydney or Melbourne. Properties in these centres tend to have better capital growth outcomes over time than property in smaller centres or mining towns with more volatile returns.
| There is also the opportunity to 'manufacture' capital growth through cost effective renovation with the right established property however 'off-plan' purchases can occasionally also work well where careful due diligence is applied to developers and locations. To Buy in the Right Cycle with the Right Timing ....... eg. What we expect to see in the Sydney market is a doubling of mortgage default rates over 2010 mainly with First Home Buyers (FHB's) at the lower end of the market - due to government intervention in the form of boosted grants and targeted construction incentives making it easier to get into the market in 2009. In the context of rising interest rates there does appear to be an opportunity for investors and FHB's to buy distressed property if rates continue to rise. It seems the Reserve Bank has done enough to normalise rates and hopefully inflation will not become the trigger for further cash rate hikes. When acting as a buyers agent our fee is usually based on 1-2% of the final contract price or sometimes buyers prefer a fee based on 20% of the discount obtained off the asking price of the property.
If there is a match with one of our vendors' (listed) properties no fee will be charged.
Our commitment is to sourcing the right property at the right price and then assisting with sourcing related services, such as finance, legals, accountancy and management, if required.
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What are your property purchase preferences?
Before sourcing suitable properties, it is essential that we understand what is important to you when investing in property or purchasing a home, as we have access to properties and individual projects across a diverse range of product type and geographic location, to meet varying buyer's needs....
1. Off-plan or Completed ? ie. do you want to lock in the pre-release price by buying early off-plan, or if investing, are you looking for immediate tax benefits buying completed or established property (eg. buying off-plan in the slower Brisbane market 6-12 mths off completion makes sense with the local housing cycle expected to have bottomed, or in Melbourne/Sydney where stamp duty savings may apply for off-plan purchases )
2. New or 'Established'? ie.there are greater tax benefits for new property in the form of 'depreciation' but renovations can add considerable value (eg renovation of older residential property). Considerable value can be added ('manufactured' capital growth) via renovation, but this needs to be done professionally and cost- effectively.
3. Yield or Capital growth? Are you 'yield focused' or are you prepared to forego yield (income) to maximise capital growth? The two can go together but generally this is a trade-off situation with properties falling into one category or the other. eg. gold or coal mining centres for income and inner city waterside properties for growth
4. Upswing phase or Countercyclical buying? eg. Sydney is experiencing solid momentum again after 5 years of consolidation or do you prefer buying 'off-plan' in Brisbane or Auckland - coming off the bottom of the housing cycle? Brisbane has plateaued after 7years of strong growth to 2008 .
5. Close to home or Interstate/Overseas? Are you prepared to invest in a remote destination with appropriate due diligence conducted ie. Stick with the familiar, or are you prepared to make an investment decision based on fundamentals alone. Is geographic diversification part of your investment strategy? eg. we can assist with lodging NZ tax return for Australian or New Zealand investment or setting up a Limited Liability Company (LLC) for US investment. On-site or local property management is recommended in any case.
6. Commercial unit, Resort , Apartment, Townhouse or House (in order of decreasing yield and ease of leasing/maintenance) . eg. Commercial property is generally higher yielding than a (town)house. Inner ring apartments are now appreciating as fast as houses and are easier to rent ...with better tax benefits
7. Investing as an Individual or in a Trust /Company structure ie. differing tax benefits eg. we have properties approved for investing via a Self Managed Super Fund and can assist with this process.
Once we understand your preferences, we are able to email you or a copy of our due diligence for a particular region. You are welcome review 'example properties' accessed via the last tab, and to reply with your preferences, for analysis at no cost or obligation.
We look forward to better understanding your requirements so that we can be of greater assistance once you subscribe to this site. See subscription box below for free subscription
Kind Regards,
Graeme Freer
Principal and Licensee
Freer Enterprise P/L t/as Freer Property and Finance - Lic no. 1581856
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