Property Update at North Melbourne Football Club
This week we were invited to be part of a panel discussion at the North Melbourne Football Club to examine how real estate plays a part in overall financial fitness. The audience was made up of players and staff looking to educate themselves on what the benefits of owning good property are and how to invest in quality real estate. Moderated by David Madigan, the education officer at North Melbourne, the panel comprised of myself as a trusted Victorian Buyer’s Agent, Charles Bongiovanni, Director of Alexkarbon Real Estate and Craig Parkins of Finance 3000.
As a Buyer’s Agent, my objective for the discussion was to educate the audience on the importance of buying high quality real estate and how critical it is to have a qualified, professional ally on your side during a property acquisition process. In an anecdotal manner which was interactive with the audience I discussed risk and reward and how to minimise the former and maximise the latter.
The audience was very receptive to the discussion and really engaged with the topic. As many of them are just beginning to think about their financial future, this topic was timely.
Some interesting questions which arose from the crowd included:
Q. How do you choose the right buyer’s agent?
A. Not all buyer’s agents are created equal. You need to do your homework on anyone you’re thinking of hiring. Check their qualifications, enquire about their experience and how many years they have been working as a buyer’s agent, look into industry body affiliations such as the REIV and / or REBAA, look up thier public reviews of their services on Google and Facebook, and ask to speak to past clients if you’re still unsure. Lastly, meet with them face to face. They may have great qualifications, but your personalities must also align. It’s best to like the person you’ll be working with.
Q. What is the relationship and dynamic between a selling agent and a buyer’s agent?
A. The relationship is good. Selling agents know that a buyer’s advocate means business. They are there to buy. If a buyer’s agent shows up at an auction, it’s almost always a guarantee that there will be bidding. Selling agents also always send their off market and private listing properties to buyer’s agents, so we work hand in hand most times. However, I must make the point that we are on opposing teams. The selling agent is looking to get the highest price for their vendor, whilst a buyer’s agent is looking to get the best property for the lowest price for their client. We have conflicting allegiances.
Q. What do you look for when looking for property?
A. We have very strict asset selection criteria, too many to name, but in a nutshell, we look for high quality property, or property with a lot of potential. We focus on things we cannot change such as the positioning of the house on the street and the direction in which it faces. We look at elevation, quality of the structure, proximity to transport and infrastructure. We take not of adjoining neighbours, potential redevelopment sites, the architectural flow. We look for the best property to meet our client’s needs.
Q. Will a new development in my street add or detract value from my property?
A. This is a loaded question. There are times when a new development can bring the value of an existing home on the street up and other times quite the opposite can happen. If it’s an investment to be rented out, rents can be impacted by the noise and nuisance of construction. What if the development is new social housing? Each example of new development would have to be assessed on an individual basis.
Q. What is the right process to go through before engaging a buyer’s agent?
A. Most important is to have your finances sorted. Know what you can afford so that you are ready to formulate a reasonable brief with your buyer’s agent. If applicable, sit down with whomever you’re investing with, i.e. your partner, sibling, etc., and work out a mutually agreeable list of must haves and wants. Once you know what you want and how much you can afford, you can meet with your selected agent.
I really enjoyed educating the players and employees of NMFC and look forward to making this an annual event.
If you’d like to improve your financial fitness through real estate please contact us for a free, no obligation consultation.
Buyer Solutions +61 3 9816 8555 or email info@buyersolutions.com.au
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