© MEDIQ Financial Services - a Corporate Authorised Representative of MEDIQ Wealth Services Pty Ltd AFSL 529906 for Investment, SMSF and Risk Insurance Advice.
Liability limited by a scheme approved under Professional Standards Legislation
September 26th, 2017
Using an agent to help you sell your property is not an unusual concept, but a more recent player in the Australian real estate market has been the emergence of buyer’s agents. This guide looks at what they do, the advantages of using one and what to look for when engaging their services.
Just as a seller’s agent devotes their time and resources to helping you sell your property for the best possible price, so a buyer’s agent is focused exclusively on helping you buy a property or properties for investment purposes.
Buyer’s agents normally offer two types of services. If you’re an investor who is time poor and possibly unfamiliar with the property market, they offer a full service including searching, evaluating, and negotiating the purchase of property on your behalf.
And if you have already found a property, but are not expert in the bargaining process, they also offer a negotiation service where they will help you obtain your chosen property at the best possible price, whether that involves negotiating with the vendor or their agent or bidding for you at auction.
There are a number of reasons why a buyer’s agent is worth considering:
While using a buyer’s agent can save you time, money and stress, it’s important to make sure you hire the right one. When making your choice:
One of the best ways to find a good buyer’s agent is through word-of-mouth recommendations from friends and family or other investors who have used their services.
The services of a buyer’s agent will vary from agent to agent, but this rough guide will give you an idea of what you might be up for:
Fees will depend on your budget, where you’re searching, the size of your portfolio and any additional requirements you may have, but many investors believe the advantages of using a buyer’s agent outweigh the costs. It’s also worth noting that the cost of using a buyer’s agent is normally tax-deductible when purchasing investment property.
If you don’t have the budget for a buyer’s agent or think you have sufficient property smarts to go it alone, make sure you keep these tips in mind when searching, evaluating and negotiating for properties to include in your portfolio:
Whether or not you choose to use the services of buyer’s agent to find the right investment properties for you, once you have acquired your portfolio, it’s important to make sure you maximise your investment.
Your investment properties should help you produce a sizeable capital gain in the future, benefit from negative gearing to reduce assessable income and enjoy various tax advantages. Obtaining a depreciation report from a quantity surveyor of qualified architect would ensure maximising this important entitlement and maintaining good records or delegating this task to a real estate agent may be advantageous to maximise the tax benefits of the investment.
As your career progresses, your financial needs will need to be revisited to adapt to your current situation and at MEDIQ, we provide our expertise in helping medical professionals understand strategies to structure their investment effectively, the available borrowing capacity, and the associated tax benefits. To find out more, contact us anytime at firstname.lastname@example.org or call 13000 MEDIQ (63347) to organise a personal consultation.