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secret weapon
Investing in property is a big decision that can keep even the most seasoned property investor awake at night. How do you know if you’ve got your investment strategy right? How can you make sure you’re choosing the right property? Where can you find the time to do the necessary research? What is the right price to pay?

A good buyer’s agent is the property investor’s secret weapon. They provide professional guidance on every aspect of your property investment journey, with the objective of saving you time, money and many sleepless nights. A buyer’s agent can help you take a more professional, balanced approach to your property investment activities, removing the emotional aspects of the process and saving you from the natural human tendency to make unwise, impulsive decisions under pressure.

What does a buyer’s agent do?
Buyer’s agents specialise in representing a buyer’s interests during a property purchase. Whilst they are most commonly used by property investors, buyer’s agents are also frequently used by families searching for exactly the right home, and people moving interstate or overseas, making the process much easier by doing all the leg-work and narrowing down the options.

Buyer’s agents usually offer differing levels of service, depending on your requirements. The full service covers every aspect of the property investment journey including:

  • Formulating an investment strategy that maximises your funds
  • Searching for suitable properties to fit your buying strategy
  • Researching every aspect of a property to ensure profitability
  • Arranging inspections with vendors and real estate agents
  • Negotiating a price and terms of sale
  • Bidding at auctions on your behalf
  • Co-ordinating your professional team – solicitors, mortgage brokers etc.
  • Ongoing service to help you establish a complete portfolio.

Getting the property research and selection process right is arguably the most important part of your property investment journey. It certainly takes the most amount of time and getting the right information requires a certain amount of know-how too. A professional buyer’s agent knows which questions to ask and where to look for the answers. They can often access information from developers, councils and other relevant bodies that is not readily available to the ordinary consumer.

However, you don’t necessarily need to engage the full services of a buyer’s agent. You can also engage a buyer’s agent just to do research for you, to negotiate a price for you, or to bid for you at an auction if you would rather not do it yourself. This can be a good idea if you are nervous, inexperienced, you can’t attend the auction yourself, or you feel you may get carried away by the auction process and pay too much.

How much does a buyer’s agent cost?
There are many buyer’s agents and the cost will vary according to the agent you choose, your location and your requirements. Qualified, professional buyer’s agents generally charge between 1.5  – 3% + GST of the purchase price of the property for their full services, however this can often be negotiated in favour of a flat fee and savings may be obtained if you are planning on purchasing multiple properties.

When providing a research service only, a negotiating service only, or a bidding service only, your buyer’s agent will usually charge a fee for their time. Again this will vary according to the agent, the location and your requirements. You can generally expect these services to cost around $1,000 + GST depending on how much of their time you require.

If you are purchasing a property for investment purposes, the cost of a buyer’s agent is generally tax deductible as are most of the professional services you will require as part of the process.

How do you find a good buyer’s agent?
A good way to locate a great buyer’s agent is by word of mouth – there’s nothing like a recommendation from a friend, colleague or trusted business advisor (like your mortgage broker) to make you feel confident about someone’s credentials. However, you can also find some reputable buyer’s agents through the Real Estate Buyers Agents Association of Australia (REBAA) website.

Sometimes, outsourcing is the sensible option
Engaging a buyer’s agent can save you hours of time and loads of stress. If you’re new to property investment, then a buyer’s agent can also be invaluable in helping you to avoid costly mistakes. When you do find a property you want to buy, all the hard work in locating it can easily be lost in the final hurdle – the purchasing process. Having an expert on your side to negotiate the price you need, or to bid for you at the auction, can reduce the risks and make all the difference. Using a buyer’s agent is one case where outsourcing can take a lot of the frustration out of the process!

For more information, or to get your property investment finance in place, give us a call. We’ll be happy to help.

Did you know: the City of Joondalup has one of the hottest suburbs in the state right now – Heathridge.

Currently Heathridge properties are selling faster than almost all other metro suburbs, second only to Shenton Park and Leederville. Properties in the suburb are currently on the market for 40 days before selling.

If you are thinking about buying in the area, email leandro@elementfinance.com.au first for your insiders report.

This article originally published here.

The State Government has again pledged its commitment to the exciting and visionary Ocean Reef Marina project, agreeing to sign a new joint Memorandum of Understanding with the City of Joondalup.

Joondalup Mayor Troy Pickard was told of the news on Friday (20 May) during a visit to the marina site with local members Ocean Reef MLA Albert Jacob and Joondalup MLA Jan Norberger.

The MOU announcement coincided with news that the State Government has also allocated $500,000 to the project as part of its 2016-17 Budget.

The MOU is a formal agreement that acknowledges a strategic alliance and the shared commitment of the City and the State Government as joint landowners of the site in bringing the Ocean Reef Marina project to fruition.

Joondalup Mayor Troy Pickard said the MOU was a vital step in a long process as the City could not deliver a project of this size and complexity on its own.

“This document will set out the roles of the City and the State Government and how we will work together to resolve ongoing issues, recognising that a collaborative approach is needed to develop the marina,” he said.

The Mayor said the extra funding would enable the City to continue the planning phase of this complex and multi-faceted project.

The City is currently progressing the environmental and planning approvals for the Ocean Reef Marina via an amendment to the Metropolitan Region Scheme (MRS) boundary and a Public Environmental Review of the marine based components.

Mayor Pickard said the State Government’s financial contribution would enable the City to complete the outstanding tasks required for these processes, as well as finalise the Ocean Reef Marina Structure Plan.

“It will also allow the City to undertake any additional environmental work as required by the relevant agencies, respond to submissions arising from the public advertising of the PER, MRS Amendment and Structure Plan, and continue our extensive liaison with key stakeholders,” he said.

“The City has been custodian of the Ocean Reef Marina and championed this project for a considerable amount of time and committed significant resources.

“The environmental and planning approvals process currently underway is complex and challenging, with some 35 different environmental and planning studies or investigations being undertaken in recent times.

“This considerable body of work represents a financial investment of approximately $2.6 million, and whilst there is still some way to go, the funding from the State Government is timely.

“It is anticipated that the MRS Amendment, the PER and the Structure Plan will be advertised for public comment in the latter half of 2016, subject to agreement by the relevant State Government approval agencies.”

In October 2015 the City requested the State Government to take over as proponent of the project, mindful that it does not have the capacity and resources to build the Ocean Reef Marina on its own and would need the State Government or a public/private partnership to develop the facility.

“The City is preparing a structure plan in collaboration with the Department of Planning in its pursuit to obtain the necessary planning approvals that would ensure the desired urban outcomes of the Ocean Reef Marina concept plan,” Mayor Pickard said.

“Moving forward the City aims to work with the State Government to determine how the project is best progressed to construction stage.

“As land owners, the City would still like to be actively involved in the decision making process and work collaboratively with all stakeholders to produce an approved, financially viable, and publicly supported project that is delivered in accordance with community expectations.

“I can assure all of our residents and ratepayers that the City remains extremely determined to see the Ocean Reef Marina come to fruition.”

The Ocean Reef Marina project includes approximately 750 boat pens/stackers, boat ramps and boat trailer parking, hotel/short stay accommodation, residential apartments and single lots, food and beverage outlets, retail and service commercial, public open space and community amenities, an Internal beach, sea sports club and sea rescue facilities.

FAST FACTS

2016 – City receives funding from State Government in 2016-17 Budget to continue approval processes. State Government agrees to sign another Memorandum of Understanding with the City.

2015 – City calls on State Government to become the proponent of Ocean Reef Marina project.

2014 – Initiation of the Metropolitan Region Scheme boundary amendment by the Western Australian Planning Commission.

Environmental Protection Authority determined to assess the marine based components (under section 38 of the Environmental Protection Act 1986) via a Public Environmental Review.

2013 – Submission to the Western Australian Planning Commission of a request to amend the Metropolitan Region Scheme boundary.

2012- Signing of the Ocean Reef Marina Memorandum of Understanding with the State Government.

2011 – An amended concept plan was endorsed by Council as the basis for the preparation of the Local Structure Plan for the development.

2009 – Concept plan seven endorsed by Council for community consultation. Received 95.6% support from the almost 12,000 respondents who made submissions.

2007- Ocean Reef Marina Committee, Government Steering Committee and Community Reference Group established.

This article was originally published here and although a couple of years old, most information is still valid.

Northern Perth’s Joondalup region is adjusting to the moderating market of the city.

The northern beaches Joondalup region includes Burns Beach, Edgewater, Joondalup, Connolly, Heathridge, Kinross, Currambine, Iluka and Ocean Reef. The suburb of Joondalup itself acts as a hub to Perth’s outer northern suburbs.

The push to establish Joondalup as an urban centre extends back to 1970, with the Corridor Plan for Perth. A number of retail and transport infrastructure initiatives have been implemented around the area in the past 40 years to facilitate urban development and direct activity to Joondalup. Joondalup was highlighted in the West Australian state government’s Directions 2031 strategy as one of two primary centres in the Perth metropolitan area, along with Rockingham.

The area’s CBD has a strong retail focus and has seen considerable residential development in recent years, with a relatively high density of townhouses and apartments. With the presence of Edith Cowan University, a healthy retail and entertainment district, established parks and in close proximity to the beach and Lake Joondalup, the area has attracted demand from the middle class lifestyle market.

The greater region of Joondalup had a median house price of $588,750 in March, while units in the area sold for a median price of $415,000. A two bedroom Joondalup apartment in the block pictured below sold for $408,000 in February.

According to Australian Property Monitors senior economist Andrew Wilson, Joondalup’s appeal to middle income earners has lent the area some resilience against the changes seen in Perth’s market.

“Joondalup is in the middle price range area,” said Wilson.

“There’s a bit of a lifestyle market there. With all the new developments that have been established in that area, we’re seeing middle price bracket, executive type buyers.

“Because of that nature of the market, it tends to be quite resilient. The big picture is that Perth is moderating. The latest data shows that Perth’s market has plateaued.

“We’re seeing quite a significant upward shift in unemployment in Perth, which has moderated lately.”

According to data from the Real Estate Institute of Western Australia, listings in Joondalup and the neighbouring Wanneroo jumped earlier this year, up 28% in the March quarter from December.

Despite Joondalup’s relative strength, its property market must still deal with exposure to Perth’s labour market, said Wilson.

“The Perth labour market has seen some difficulties with absorbing eastern state migration, which saw rents get pushed up quite sharply in some suburbs of Perth. Perth prices rose 10% last year, and with rising unemployment, we’re starting to see some affordability issues.

“And the lifestyle market can certainly be affected by job security and affordability issues. But as the economy does pick up and absorb that unemployment, incomes will grow.”

The slowing mining sector in Western Australia has seen a shift in focus for the region, with the city of Joondalup launching new initiatives to market the region as Perth’s “knowledge capital”. How well the region responds to the state’s shifting economy remains to be seen, but strong infrastructure investment in the area in the past and extending into the future ensures that it will remain a significant urban centre for Perth’s northern corridor.

Photo courtesy of Wikipedia/Creative Commons.

We here at Element Finance are super excited to introduce to you the most recent Mortgage Broking expert to join our team, Leandro de Jesus.

If ever there was someone that made discussing finance and home loans truly an enjoyable experience, that someone is Leandro. His genuine enthusiasm to help each and every one of his clients succeed with their property goals is clear in every instance.

Himself an active property investor, Leandro understands what it can take when it comes to starting or growing your investment portfolio. His first hand experience in the WA property market continues to prove invaluable for his clients. 

Focus: Leandro is the guy you want on your side for all things property investment. Living in the City of Joondalup, he has an intimate knowledge of the surrounding suburbs. If its discussing home loan structure, negotiating a personalised deal with your lender or connecting you with other property professionals, he has you covered.


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Copyright 2016