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 30% 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 (FPF) 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.
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.
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 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 the purchase of a quality property in a higher capital growth area, such as a one or two-bedroom apartment/3BR house in Sydney, Brisbane or Perth. Properties in these centres tend to have better capital growth outcomes over time than say property in smaller centres or mining towns with more volatile returns.
To Buy in the Right Cycle with the Right Timing ....... eg. our position that the Reserve Bank moved too quickly to normalise the cash rate has been vindicated with a 25 BP rate cut on Melbourne Cup Day and again the following month. This was followed by a 50BP rate cut in May. With ongoing weakness in the US and European economies as well as signs of a slowing Chinese economy, further cash rate cuts are likely this year.
More than 106,000 people who rent in Sydney face difficulties meeting the basic costs of living, according to Housing Costs Through the Roof, a report compiled by the National Centre for Social and Economic Modelling at the University of Canberra on behalf of Australians for Affordable Housing. (October 2011)
The report examined households that earned the lowest 40% of incomes – taking family size into account – who spend 30% or more of their earnings on rent or mortgage payments.
On this basis, over 73,000 or 12% of mortgage holders in Sydney are in housing stress, with the figures even higher for first-home buyers, indicating 15% (just over 15,000) are struggling to make ends meet.
When acting as a buyers agent we only get paid on results (other than a nominal engagement fee). Our fee is usually based on 20% of the discount obtained off the asking price of the property.
'NO Discount - no fee' policy: if we can't negotiate a discount then there will be NO Fee.That's our guarantee for residential property.
NO request TOO BIG or too small eg. sourcing investments from $170k to DEVELOPMENT SITES of $700m
If there is a match with one of our vendors' (listed) properties no fee will be charged.
See FEATURED PROPERTY
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.
$500 engagement fee is all you pay until satisfied and selected property is purchased.
Before sourcing suitable properties, it is essential that we understand what is important to you when investing in property/selecting a development site 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 12-18 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. Profit share with builder/developer.
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. coal mining centres such as the Illawarra/The Hunter/Bowen Basin. Add a 2BR granny flat (for $80k installed) and increase yield substantially. Properties approved for the National Rental Affordability Scheme (NRAS) may suit investors sacrificing 20% of market rent for approx $10kpa tax free
4. Upswing phase or Countercyclical buying? eg. Sydney is experiencing solid momentum again after many years of consolidation and undersupply or do you prefer buying 'off-plan' in Brisbane or Auckland - coming off the bottom of the housing cycle? Brisbane values are now recovering after 2 years of negative growth (especially low lying areas have fallen due to the 2011 floods). Economic vibrancy is now being restored with mineral export volumes increasing due to improved capacity, massive infrastructure spending and resilient overseas demand from India and China.
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. NB. Additional due diligence required here as there are many locations on the NO GO list
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 refine your strategy and email you 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
Principal and Licensee
Freer Enterprise Pty Ltd t/as Freer Property and Finance - Licensed Real Estate Agent and Buyers Agent