18 May 2023 Podcast: Q & A – Buyer’s Agents: Commissions, Growth vs Yield, Time to Buy, Regional vs Metro and More!
In this episode, we answer your burning questions with Buyer’s Advocate Aife Horsley, diving into the world of buyer’s agents and exploring a range of key aspects related to their role.
We start off by examining the trade-off between capital growth and rental yield when selecting a property, and what’s best for your long-term goals. We also delve into commission structures and how buyer’s and vendor’s agents are compensated, shedding light on the implications for their clients. Furthermore, we compare the advantages and disadvantages of buying in regional areas versus metropolitan areas, considering factors such as affordability, lifestyle, and investment potential. We also emphasize the value of local knowledge and how buyer’s agents with deep expertise in specific areas can uncover hidden gems and secure the best deals for their clients.
Join us as we unravel these questions and provide valuable insights into the world of buyer’s agents. Whether you’re a first-time buyer or an experienced investor, this episode will equip you with the knowledge and understanding to navigate the real estate market with confidence.
Find out your next step in property finance:
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https://www.everlend.com.au/
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You Have My Interest is brought to you by Everlend, a mortgage and finance broking firm built for the purpose of educating and empowering you to make informed financial decisions tailored to your wealth goals. Find out more and book in your free initial consultation at https://www.everlend.com.au/
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Find out more about You Have My Interest at everlend.com.au/podcast and connect with us at podcast@everlend.com.au
You Have My Interest provides information and educational content relating to mortgages, finance and property. You Have My Interest‘s content is general in nature and does not take into account the individual financial, legal or tax needs or objectives of its audience members.
It is not intended as a substitute for professional advice. Listeners should seek out a licensed professional to discuss their individual financial, legal and tax requirements.
If you need mortgage or finance advice tailored to your own personal situation, contact Everlend today for a free consultation. Everlend are authorised credit representatives of Loan Market Pty Ltd, Australian Credit Licence number 390222.
Podcast produced with Apiro
Please find a Podcast summary below with the interview highlights:
The episode begins with an Acknowledgment of Country, paying respect to Aboriginal Elders past, present, and emerging. Evelyn and Maddie, mortgage brokers, introduce the Q&A episode featuring Efor Horsley, a Melbourne-based buyer’s advocate, discussing insights into the property market.
Key Topics Covered:
- Capital Growth vs. Rental Yield:
- For most investors, capital growth is prioritised initially, especially for owner-occupied properties.
- A balanced approach (mix of growth and yield) is recommended for the first investment property.
- Yield-focused properties become more relevant later in an investor’s journey to support cash flow and pay down debts.
- Rentvestors:
- Rentvestors (renting while investing) are advised to start with balanced properties that offer both growth and yield.
- Properties should build equity to enable future purchases.
- Buyer’s Advocate vs. Vendor Advocate:
- Buyer’s Advocate: Represents buyers, negotiates property purchases, and ensures fair pricing.
- Vendor Advocate: Assists sellers by selecting agents, reviewing proposals, and ensuring the vendor achieves the best sale outcome. The advocate is paid via commission sharing with the agent, costing sellers no extra fees.
- Commission Structures:
- Buyer’s advocacy operates on a fee-for-service model (paid in instalments).
- Vendor advocacy involves commission sharing with agents, with no additional cost to sellers.
- Average Time to Purchase:
- In hot markets, properties were purchased within 2–3 weeks.
- Current market conditions extend purchase timelines to about six weeks due to lower stock levels.
- Investment Strategy: Single vs. Multiple Properties:
- Whether to invest in one higher-value property or multiple lower-value properties depends on the individual’s goals.
- Regional properties often provide better value for money and rental yields compared to metropolitan markets.
- Off-Market vs. On-Market Properties:
- Off-market properties can offer reduced competition but may involve unmotivated sellers or unrealistic expectations.
- The suitability of off-market opportunities is assessed on a case-by-case basis, similar to on-market listings.
- Market Cycles and Buyer Trends:
- High competition in previous years led to quick sales and higher prices.
- Current market trends show more off-market opportunities due to seller uncertainty and changing buyer behaviour.
Conclusion:
The episode provides insights into property investment strategies, the roles of buyer and vendor advocates, and market trends. It encourages listeners to assess properties strategically and consider professional advice when buying or selling. Listeners are invited to explore a more detailed main episode and book a free discovery call via Evelyn’s platform.