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Many home buyers have been asking how a Buyers Advocate can help them save, when it comes to buying their properties. Some have also wondered what a buyers advocate do to help them buy their house, that they cannot do on their own. Too many people simply focused on what they can save upfront in terms of buying price. Buyers have forgotten the benefits of buying their property fast. Many believe they do not need the house now, thus, they are in no hurry to buy. Is this really true? I will explain what else property buyers need to consider, when you buy your house in this article. This is true, usually when times are bad, and there are not a lot of buyers in the market. But it is hardly the case, during good times, where they can be 5 or more buyers for each property being sold. What can a Buyer Agent save during bad times? During bad times, when there are more properties being listed for sale than interested buyers, it is possible to negotiate for a good price, as there are not a lot buying competition. You are probably the only person interested in the property. Thus, buyer's advocates would be able to help purchase the property at a better price or with better terms. On average, we are consistently securing saving of between $30k to over $100k for our clients. What can a Buyer Agent save during good times? During good times, where there are more more buyers than properties being available, saving on upfront costs is very unlikely. We definitely can submit low-ball offers for the property, but this would not be fair to the buyer, as they would be missing out on the property that they want. Instead of looking at upfront savings, consider how much faster a our Buyers Advocates can help to buy your property. With our buyers advocates in their buying team, our property buying clients has been able to purchase in under 3 months. Now, let us compare this to a typical buyer who chose to buy the property on their own. Canstar studies have shown that it can take a buyer up to 12 months to buy their properties. Why is it critical to buy fast in a booming market? Many buyers believed they are in no hurry to buy, just because they currently have a stable roof over their head. While this is true, what else are they missing? What have they not considered? Have you thought of: How many weekends you've spent searching for house, and going for inspections? How do you put a value to these lost time? How much does disappointment cost? How much do you value your time? How much have you missed by buying just a month slower than others? It is true that there COULD be a better house in coming weeks. How many "coming weeks" have you waited for that house? Have a look at the list price. Is the next house any cheaper than what you've just walked away from? What does this mean in terms of dollars? Let us have a look at the following case study. Benefits of Buying Property with and without Buyers Advocates This case study is based on 2 actual groups of buyers. They are colleagues at work, and had decided to buy their first homes with similar budgets. The real names had been replaced by Group 1 and Group 2, and their budget and property price growth has been rounded up to whole numbers to simplify the illustration. Case Study: Group 1: Budget $1,000,000. Bought with our Buyers Advocates, and took 3 months. Group 2: Budget $1,000,000. Bought on their own, and took 9 months longer. From 2020-2021, Corelogic reports that house prices in the Melbourne property market has been growing at an average of 1-2% EVERY MONTH. That's about 20-24% a year, compounded. Group 1 found and bought their first home in 3 months. Our buyers advocates have found a good property and secured it for our clients at $1,000,000. Group 2, however, were still searching for their home. It took them a further 9 months before they find their first home. In these 9 months, Group 1, who had already secured their home, had a significant growth in their asset. The value of their house has increased to $1,143.000. If they had not engaged our Buyers Advocates, they would have to spend over $1,143,000 (+ stamp duties) to buy the very same property. IE, instead of having to spend an extra $143,000(+stamp duties), they have effectively increased their asset base by $143,000. Buyers Advocates helped save over $143,000. Their Asset increased by $143,000. Meanwhile, Group 2, who is buying on their own, would have to spend a further 9 months and $143,000 + Stamp duties, if they are looking for something similar in a similar area. IE, they would have to spend a further $151,000 (considering 5.5% stamp duties) more, to buy their home. Or, like most first home buyers, they have no choice but to buy in a lesser location. Keeping their original budget of $1,000,000, they managed to buy about 15km further away from the city. That is about 30 minutes further, during peak hours. That is 1 hour of extra travel time every day, and they have lost $143,000 in equity growth, due to this delay. Buying without a Buyers Advocate, cost them 1 hour more in travel time every day and $143,000 in lost equity growth. Conclusion: Buyers Advocates Do Help Save Costs Now, hasn't Group 1 saved $151,000, just by engaging the services of our Buyers Advocates? And by the time Group 2 buys their home, Group 1 would have an extra $143,000 in asset to tap into. Assuming a typical buyer's agent charges a fee of 2% of the property price, Group 1 would have gained $143k by investing in the $20k buyers agent fee, a return on investment (ROI) of over 700%! While, by saving the $20,000 buyers agent, Group 2 have to spend $151k more to buy their house. A loss of over 750%. It is true that the services of Buyers Advocates are not for everyone. We have rejected many clients because we believe we are unable to help them. But more importantly, we keep this service exclusive to help those who genuinely wanted the assistance and who would appreciate our expertise. Here are some reasons why you would NOT need a buyers agent. If you are interested to discover if our Buyers Advocates are for you, get in touch.

With the Coronavirus (a.k.a COVID-19) hogging the news in recent months, we've been asked many times, for our opinion on how this virus is going to affect property prices here in Melbourne. First, let's look at the property clearance rates for the last 4 weeks, and the outlook for the next 3 months. After the traditional Christmas break, buyers are flocking back to the Melbourne market. This is reflected in the Auction clearance rates, which has remained high at around 80%. This suggests strong demand for properties in the market. Is this going to last? This is the answer everyone wants to know. Buyer sentiment is the biggest determinant factor. And over the next 3 months, that is going to be affected by, no surprises, the COVID-19 virus. COVID-19 As of now, symptoms are rather mild, like a bad flu. Death rates outside of China is less than 0.2%, which is similar to flu. However, it is FEAR that is driving people into irrational behaviours. It is a very new virus. It is similar to the SARS and MERS viruses, but different enough to cause fear. The death rates are relatively low, compared to SARS (10%) and MERS (35%). How is that going to affect the property market in Melbourne? As of now, there seems to be little effect at all. The property market is probably fuelled by First Home Buyers, taking advantage of the First Home Loan Deposit Scheme (FHLDS). You know, that 5% deposit scheme promised during the 2019 Federal Elections. The first batch of 3000 was released in Jan 2020, and it was 100% allocated within weeks! The second batch of 7000 was released in Feb 2020, and was meant to last till 30 June 2020. However, indications suggests that it is not likely going to last. Once this year's allocation of 10,000 FHLDS golden tickets has been allocated, buying activities are expected to slow. Which ultimately, could mean less demand for properties. This may or may not translate to lower prices, though, as vendors (sellers) still have certain expectations for how much their house is worth. Melbourne Property Outlook What does that mean? Put simply: March till April (and potentially May) - we are likely to see stable property prices. It could see a slight rise of between 1-3%. The virus is still going to be bothering us for the next 2-3 months. Buyers could stay away from auctions, or their focus could shift to maintaining their businesses and jobs. May till June - Judging by how quickly the situation has stabilised in China, we are likely to see the situation stabilised and put under control. We will be more familiar with the COVID-19 virus by then, and would have developed more pragmatic plans to get on with our lives / businesses / jobs / economies, etc. This is going to help with buyer sentiments. Prices are likely to be flat, and could retreat slightly (so slight, that it is hardly worth waiting for), although some suburbs (typically the top end suburbs) might see a more significant fall in prices. July and on - When 2021's allocation of 10,000 FHLDS is released, we could see First Home Buyers get back into the market again. In short, we are unlikely to see any major dips in Melbourne property prices. We might see a slight dip, but that's hardly worth the wait. Finally, when is a good time to buy? It depends on your risk appetite. If you are risk adverse, wait till the Virus is under control. But you'll be missing out on some really good deals. For the risk takers, and our regular followers you would know, by now, that the best time to buy is when no one is buying. So, get your finances ready, start to keep a look out or give us a call.

The internet is thriving with news that overseas buyers have been property shopping in Australia, and in particular, Melbourne. But why this interest in Melbourne properties? Why are overseas investors buying up properties in Melbourne? What do they know that you don't? How do you get started? What do you need to know? As an overseas investor, if you've been planning to invest in Melbourne properties, you would have come across FIRB, and you're also probably aware of how the different types of residency status affects what you can and cannot buy. You'll also be aware of some possible additional stamp duties which are applicable to your situation, depending on your residency status and the type of properties you are intending to invest in. If you would like more information on these, follow these links: Foreign Investment Review Board (FIRB) Residency status and what you can buy Additional Stamp Duties In Melbourne and Victoria, an additional stamp duty of between 3% and 8% are imposed on non-residents purchasing properties in Victoria. More details here. But is this something an overseas property investor should be worried about? No, is the short answer. But why no? Here are the facts. Property investment is for the long term Most property investors typically hold their investment properties for between 10-15 years, or longer, if the property is performing well. Unlike other forms of investment such as shares, currency speculation, unit trusts, etc, property investing has a relatively high entry and exit cost. Compared to these other types of investment as well, the lead time to buy and sell properties are typically months, instead of hours. There are also a lot more due diligence checks to be done when buying properties. You need to pick the right property, with the right condition, at the right price, in the right location and with the right tenants. Every property is unique, even if they are built by the same developer, there are always something unique about each property that makes it different from the one next door. That's why savvy investors invest in the services of independent in-country buyer agents to prevent them from buying a dodgy property. Other considerations for a non-resident As we've mentioned earlier, you'll need to be aware of the purchase process for a non-resident. The FIRB process, as well as what you can and cannot buy, depending on your residency status. There is also a purchase stamp duty which varies by state. We'll be discussing this stamp duty in Victoria context, and how this stamp duty affect or doesn't affect for a property in Melbourne, Victoria. It will take weeks to discuss how stamp duties impact purchases in different region in different state, as this stamp duties varies by state, and each region in the states perform differently. It is yet another reason why successful investors engage the services of a good in-country property advisor. Stamp Duties in Melbourne and Victoria The standard stamp duty for property purchases in Victoria is approximately 5.5% of the value of property. It is levied for all property purchases. As a non-resident, you may be required to pay an additional stamp duty of between 3% to 8% of the value of the property, depending on your circumstances, what you purchase and when you purchase. There are certain situations where you might be exempted from paying this additional stamp duty. Now, 8% may sound a lot, but it is not something most savvy investors are concerned with. At least, not for the next 6 to 12 months. Our overseas investor clients can attest to that. Why is this not an issue for these investors? These investors have researched the Australian market and saw the upcoming boom, and they are setting themselves up to reap the rewards. Here's what we are seeing: 1. Consistent Growth in Melbourne Properties For the last 30 years (1988-2018), Melbourne property prices have been growing an average of 7% annually. During some good years, growth of between 10% and 20% annually are not unheard of. At an average of 7%, property prices doubles every 10 years! Not many other investment vehicles give you this kind of consistent growth. On this fact alone, the additional stamp duty of up to 8% will be recovered in just over 1 year. Official numbers for 2019 has not been release yet, as they were being finalised when COVID-19 forced a delay in the release. Melbourne prices have been consolidating for the last 2 years (2018-2019), and at the second half of 2019, it rose a phenomenal 15% before COVID-19 forced a slow down in the property sales. If you were to look at the 30 year performance chart below, Melbourne right now, is at the tail-end of the consolidation phase and Melbourne is entering the BOOM phase. Melbourne is currently in similar periods as 2007-2008 and 2010-2012, where Melbourne property prices grew between 15% to 20% annually. The patterns are similar: slow-slow-boom, slow-slow-boom! It definitely points to BOOM time for Melbourne properties. If this happens, you could be looking to recover your 8% stamp duty in 6 months! 2. The recovering Australia Dollar The Australian Dollar has been relatively low, compared to other major currencies. But it is not going to stay this way for long. With China's economy recovering, and China buying Australian natural resources, the Australian Dollar is set to rise. And this is backed by analysis of the AUD performance against USD and SGD. Chart analysis of the Australian Dollar (AUD) against US Dollar (USD) and Singapore Dollar (SGD) both points to a recovering Australian Dollar. And the Australian Dollar looks set to recover to around AUD 1.00 : SGD 1.05. An upside of about 8%. It is a bit uncertain against the USD, due to the political uncertainties in the United States, but we would expect a similar 8% recovery. Advantages of buying properties in Melbourne Now, when you combine the 7% annual growth in Melbourne property prices and the recovering AUD; plus, if you hold the property for 10 years of compounded growth, you stand to gain more than double what you invest. An investment of $500,000 today, could be worth over $1 million in 10 years time. This is why our overseas clients have no qualms investing in Melbourne properties. They are preparing themselves for the imminent boom in property prices and the Australian Dollar. The clients who had trusted our opinion and had bought when the Australian Dollar sank to an all time low (March and April this year), are now smiling, as the AUD had appreciated almost 25% from its low. Their properties are now worth about 18% more on average, in 2 months! It definitely does pay to engage the right independent, in-country property buyer's agent to buy the right property at the right price, in the right location. Melbourne Property Outlook So, what is the outlook of the Melbourne property? Follow our blog and like and follow our Facebook and Linkedin pages for the latest news. We provides regular updates, outlook and forecast on the Melbourne property market. How can our Melbourne property concierge service help you? Prices of Melbourne properties range from $400,000 to well over a few million dollars. Each type of property caters to different buyers and investors. If you are interested in buying the right property at the right, find out why our clients are engaging the services of Concierge Buyers Advocates. Have a look at our success stories. Find out about their experience and testimonies. Get in touch, for more information.

Before you engage the services of ANY real estate agents (including buyer agents and buyers advocates), even if it is an agent who is willing to "help" you find a property "for free", have you checked that they are properly licenced? And have you ever wondered how your real estate agents are paid? Did you know, knowing who pays your agent can affect how much you pay for your property? You might be saving a bit on buyers agents fees, but that can end up costing you hundreds of thousands more. Here's what you need to know. Who pays your real estate agent? Not many property buyers bother to find out. But, not knowing the answer to this basic fundamental question is one of the biggest sins of property buying. All home buyers and investment property buyers should ask your agent this. The answer to this fundamental question will help you understand who your real estate agent is really working for, and how much you should trust your agent. Here in Australia, buyers agents (or buyers advocates) are everywhere. Just like a real estate sales agent, there are too many to choose from. There are the legitimate, licenced and fully insured legal buyers agents, and there are fly-by-night property sales people (yes, some are calling themselves buyers agents to gain your trust) who are here today, sell you a investment and retirement dreams, and disappear by night. Then there are the "free" property sales agents who are also willing to help you buy properties, without charging you any fees. With so many to choose from, how do you know who are the legitimate, genuinely independent Buyers Advocates (or Buyers Agents) that work to protect the interests of property buyers? How do you know who are the ones you should trust? Is there any real free property buying services? Everyone wants a free thing or two. But the secrets you are about to know, will make you think twice about engaging the "free" buying agents. The answers here may shock you. And they will more likely than not, cost you hundreds of thousands more, without you even realising it. There are simply too many people calling themselves buyers agents in this industry. It is indeed very difficult for uneducated consumers to differentiate the real buyers advocates from the fake without understanding the fundamentals. We will explain the different types of 'buyers agents' in this property education blog. By the end of this article, you will know how to differentiate the legitimate buyers agents from the sales agents masquerading as fake buyers agents. You will also know how to identify and choose your buyers' agents. Understanding the Real Estate Agent Regulations Why do all real estate agents have to be licenced? First off, let us explain the basics. Why must all real estate agents be licenced. Real estate transactions typically involves millions of dollars. It is usually a big ticket item. And unfortunately, most buyers are buying properties based on blind trust. Not many buyers really know the whos, what's, whens, wheres, whys of buying a property in Melbourne and Australia. And because of this high value, there had been too many scams by dodgy salespersons. To protect the interest of property buyers, it is therefore necessary to enforce licensing of real estate agents. However, enforcing licencing only provides only about 33% of the protection, as this property buying guide will explain. The law is strict. Anyone helping to sell or buy properties are, required by law, to be licenced. This licencing requirement helps to ensure the agents know their code of conduct, and helps protect the buyers' and sellers' interests in a real estate transaction. In Australia, this code of conduct and regulations are state-based, and each state has a slightly different set of regulations. But the regulations are largely similar. The need to protect property buyers and property sellers are very well spelt out in these regulations. Here are what you should know, before you engage your real estate agents who are willing to help you buy your property. And here is why your "free property buying service" will cost you hundreds and thousands of dollars. But first,... How are real estate agents paid? Like any other professions, professional real estate agents need to get paid for their work. No one is expected to work for free. Not in Australia, at least. True Australians always pay fair price for their goods and services. True Australians believe in being fair. True Australians do not take advantage of others. And, here is one thing you should always remember. Simply by paying for the services of the real estate agent, the payor would make themselves the employer, or the "principal" of the person getting paid. This is a very important basic concept, in any transactions. All property agents know this. And all property buyers should also know this. "Who paying your real estate agent?" Who do real estate agents work for? Even though real estate agent licensing and regulations are managed by each individual state, the regulations are largely similar. The regulations states that real estate agents should ALWAYS protect the interests of their principal. Now, who is their principal? Principal is whoever pays for their services. They have to protect whoever pays them and engage them for their services. In Victoria, this is spelt out clearly in Part 2, clause 11 of the Victorian Estate Agents (Professional Conduct) Regulations 2018 S.R. No. 49/2018. An estate agent or an agent's representative must always act in a principal's best interests. There are no ifs, no buts. This clause might be worded slightly differently in different states, but it is essentially has the same effect throughout Australia. in plain english, A real estate agent must protect the interest of whoever pays them. What you should know about buying real estate? If you are intending to engage a real estate agent to help you buy your property, and you are hoping to get one of the free buying services of a real estate sales agent, you should think twice. The free service will cost you dearly. Find out who is paying for their services. Remember the above paragraph? Who is really paying for the free property buying services? No one is going to work for free. The agents have a family to feed. They have a mortgage to pay. And most real estate sales agents have a fancy car loan to pay. If they are not paid by you, how do you think they are paid? Yes, you are smart enough to know, by now, if your "free buyers' agent" is not paid by you (the buyer), they are paid by the vendor / seller / developer of the property. And remember, simply by receiving any forms of payment, such as commissions or fees, from the seller, even if it is on a co-broke or on a conjunctional basis, it makes the property vendor / seller / developer the agents' principal. IE, your "free" real estate agent is working for the seller, not you, as the buyer. They are effectively real estate SALES agents. They are working with the seller, helping the vendor sell the property to you, at a price they want. They are working against you. Real estate sales agents are working against buyers. They are out to get you to pay the maximum price. And to get your trust, many are calling themselves "buyers agents". Thus, the birth of free "buyers agents", and tarnishing the reputation of a Buyers Advocate. Remember Part 2, clause 11 of the Real Estate Agents Professional Conduct Regulations? The estate agent or agent representative must always act in the principal's best interest. The Principal is whoever pays the agent, and by being paid by the seller, it makes these "free buyers agent" the seller agent. It does not matter what these "free" agents tell you. They are either lying to you, or they are breaking the law. The regulations mandates that the agents must always act in the best interest of their payor. Which, in the case of the "free" buyers agent, having the seller pay the fees effective makes them the selling agent, and they have to protect the interest of the seller. There are no other ways, without violating the regulations. So, as with all sellers agents, these "free" buyers agents will almost always aim for the highest possible price simply because their commissions are directly tied to how much they can sell the property for. It is sad that many buyers, in trying to save a small buyers agent service fee of $15,0000 - $20,000, are unknowingly being mislead into paying hundreds of thousands more for their properties, by these "free" buying agents. The truth with Sales Agents' "Let me help you get this property" Pitch Next, this is another important fact in the regulations that no seller agents wants you to know. One of the favourite sales pitch is "Let me help you get this property"... Now that you know the sales agent's secret, who are they really helping? Are sales agents really helping you? Being paid commission by the vendor, they become the protector of the seller's interest, the sales agents will always get you to pay max money for the property. Their commission is directly linked to how much the property is sold for. And all sales agents are trained to negotiate and extract the most out of you. So, the "Let me help you get this property" is a pitch to gain your trust, lower your guard and help them convince you to pay maximum price for the property. What do you need to know when you engage a free buying service? Now that you realise those 'free' buyers agent services are not your friend, and not working in your favour, what can you do? Easy. Always do your own diligence. Even if these "free agents" have claimed to find one that is the best for you. Remember these agents are working against you. They are paid by the seller and will therefore, have to protect the seller's interest. They are selling what they have to sell, not what you want or what you need. The "best property for you" that they have recommended usually means that property will pay them the best commission from the seller. It is usually not the best for you. And it could be the property that they had been trying to sell for too long. No one wanted that, and they are hoping you will buy it. There could be many other properties which is more suitable for you, but because they are not getting any commissions from those sales, they will not recommend them. They are not earning a cent if they do. You could be missing out on a property that really suits you. What can you do to avoid being scammed by these "Free" Property Buying Services? There are only 2 things you can do: Be careful. Free "Buyers Agents" are fake buyers agents. They are not working for you. You have to do your own due diligence. Engage a genuine independent Buyers Advocate / Buyers Agent. How do you find genuine real estate Buyer's Agent who work for buyers? You can turn the tables, by engaging a genuine buyer's advocate (also known as buyer's agent). They are the real deal. They are the ones who protects your buying interest and look after you on your purchase journey. The independent buyer's agents are the ones that buyers can really trust. How do you identify who are the real independent buyers agents? Now, remember the agent is legally required to look after the interest of their principal. IE, whoever pays for their services. If you are paying for this buying services, the agent must look after you, and ensure your purchase is in your interest. And depending on the scope of the service, this usually means helping you negotiate for the lowest possible price, or package your offer for the best possible purchase outcome. Your savings is usually worth more than the fees you pay. With our buying services and fees structure, our clients are usually saving 3 to over 10 times more than our fees. 10 times return on investment (ROI)? Now are you interested? How do you find a genuine Buyer's Agent in Melbourne? Now, you will be asking, when you have paid for the buyers advocates services, how can you be certain that they are working in your favour? If you have engaged a licenced real estate buyers agent, you do not have to worry. The Real Estate Professional Conduct Regulations ensured that. Part 2, clause 8(1)(a) of the Estate Agents (Professional Conduct) Regulations 2018 S.R. No. 49/2018 addresses this. An agent or an agent's representative must not accept commission from the seller of real estate when engaged to purchase that real estate on behalf of a purchaser. An agent or an agent's representative must not accept commission from the seller of real estate when engaged to purchase that real estate on behalf of a purchaser. A properly licenced buyer's agent cannot and will not accept commissions from the seller if you have engaged and paid for their services. There are heavy penalties leading to heavy fines and loss of licence if they were found to be receiving fees and commissions from both the seller and buyer in the same transaction. So, to protect yourself, you should always ensure you engage a paid and licenced buyer's agent for the purchase, not any other real estate sales agents helping you for 'free'. The free buyers agent services are not free, they cannot have your interest at heart and they will cost you dearly. If they are not paid by you, they are paid by the seller and that means, they will have to protect the seller's interest, not you. What do you need to know of people claiming to give you Financial Freedom through Property Investing? Rogue Buyer's Agents? So, if the law is so clear, what do you need to watch out for? Have you heard of get rich quick, property mentoring programmes? Yes, those that charges you a sign-up fee to join their financial freedom property investor investment services, gives you access to some online sales materials, then entice you with their mass-market cookie-cutter formula to "help you buy good properties"? They claim to be able to help propell your investment into a success. If you've been shopping around for real estate, you would have come across them. Is this legal? Who are these investment "strategist"? A workaround for the real estate agent regulations? Are these consultants or "strategists" real estate agents? Or are they the smooth talking salespersons? They have to be legally licenced to sell you properties... Are they licenced? If not, why not? And because they are providing you a financial dream, do they have a Financial Planning Licence. If not, why no? Are they charging you a fee for their "mentoring program", and then getting sales commission from the developers to sell you a property? Notice how they always seem to buy where they are recommending? Hmmm... Some food for thought. Conclusion - Where can you find real, independent Buyer's Agents? What should you do to ensure you have an agent that truly looks after your interest? You can either spend years to learn everything about the real estate industry, by trial and error, or you can pay for a legitimate, licenced buyer's advocate to help with your purchase. The regulations mandates that the licenced agents must look after the person who pays them. The same set of regulations also prevents a licenced agent from working for both the buyer and seller for the same transaction. Thus, to ensure you are engaging a legitimate, licenced buyers agent, all you need to do, is to pay for the agents services and avoid those who sells you an investment dream. I wished there is, but there's no free lunch, unfortunately. There are no such thing as a free buyers agent service. You might not be paying them, but they will cost you hundreds of thousands. Some food for thoughts. If you are ready to get in touch with a licenced buyer's advocate, get in touch: Here. Let us discuss if our services are right for you.

In life, uncertainties abound, including the inevitability of death. In Australia, the absence of a will can lead to complexities in estate distribution. Unlike some countries, assets aren't automatically distributed. Instead, they're almost immediately frozen, prompting a meticulous process. Who Inherits Your Estate Without a Will? If you die without a valid will, then an application for a Grant of Letters of Administration may be made to the Supreme Court. Usually, it is the deceased’s next of kin who has to apply for this grant. For example, the spouse, domestic partner or a child of the deceased. If the person died and left behind a partner, then all of the estate goes to them. If there were children but no partner, the estate is distributed to the children equally. If the person had no partner or children, then all the estate goes to relatives in this order: Parents Siblings Grandparents Aunts and uncles Cousins. The estate does not pass to the government unless there are no living relatives. If you think you might benefit from a will, it is always best to get independent legal advice from a private lawyer. It can create a whole lot of administrative problems when retrieving the assets for distribution. What happens to your property if you die without a will? How the property is distributed will also depends on the title of the property ownership. A property can be registered under 2 forms of ownerships. - Joint Tenancy: Property ownership in which each party on the title to the property holds an individual interest in the property. An example of a joint tenancy is the ownership over a house by a married couple. In this situation, joint tenancy comes with the ''right of survivorship''. That means that when one of the joint tenants dies, the interest of the deceased joint tenant automatically passes to the surviving joint tenant or tenants and does not form part of the estate of the deceased. - Tenancy in Common: Do not automatically receive the right of survivorship. If one of the tenants dies, their interest in the property will be distributed according to their Will. If there is no Will, the rules of intestacy will be applied to divide the deceased person's portion of the property. Always seek formal legal advice This is for general information only and is not formal legal advice. It does not take into consideration your personal situation and circumstances. There are pros and cons to each form of ownership which may or may not apply to you. Always seek proper legal advice before purchasing any property to determine which works best in your situation.

Buyers advocates seems to be everywhere at the moment. And many are giving buyers advocates a bad reputation because sneaky sales agents or marketing agents are calling themselves buyers agents, claiming to help you to build wealth and retire early. When it comes to navigating the complex world of real estate buying and selling, having a trusted advisor by your side can make all the difference. However, not all buyers advocates are created equal. It is very critical to know who you can and should trust in the real estate world. The importance of using a real, independent buyers advocate cannot be overstated. In this article, we will explain the significance of independence and why it should be a top priority when seeking professional assistance in your property buying journey. The Fake Buyers Agents or Fake Buyers Advocates For years, this image of Buyers Advocates or Buyers Agents has been tarnished by sneaky sales agents or marketing agents calling themselves buyers agents, and helping you to "build financial wealth" for early retirement. However, when you dig further into their investment strategies, business model, and even business ownership structure, an experienced buyer's advocate will quickly notice they are nothing more than sales agents and marketing agents selling you what they have been told to sell. You are buying what they have to sell, not what you need. Such fake buyers advocates usually goes by catchy names, and are based out of swanky offices. Hey.. the fees and commissions from their past clients and developers paid for this... How will you benefit from the services of a Buyers Advocate? Let's step back a little and let us explain how genuine Buyers Advocates can help with your property purchase plans. With genuine buyers advocates who have nothing to sell and just want to help, the benefits are immense: Market Knowledge and Expertise: One of the primary reasons to consider a buyers advocate is their unparalleled market knowledge and expertise. These professionals are immersed in the real estate industry, keeping a pulse on current market trends, property values, and emerging opportunities. By tapping into their extensive knowledge base, buyers advocates can provide valuable insights and guidance, helping you make informed decisions throughout the buying process. Time and Effort Saving: Searching for the perfect property can be an incredibly time-consuming endeavor. From scouring listings to attending open houses, the process can quickly become overwhelming. A buyers advocate streamlines this process by conducting a comprehensive search on your behalf. They filter through countless properties, presenting you with only the most suitable options that align with your requirements, saving you valuable time and effort. Access to Off-Market Opportunities: Some of the best property opportunities are not always publicly listed. Buyers advocates have access to a vast network of industry contacts, including real estate agents, developers, and property insiders. This network enables them to tap into exclusive off-market opportunities that may not be accessible to the general public. By leveraging these connections, buyers advocates can present you with unique options that others may never even know existed. Skillful Negotiations: Negotiating the terms of a property purchase can be a nerve-wracking experience, especially for those unfamiliar with the intricacies of the process. Buyers advocates are skilled negotiators who can act on your behalf, ensuring you secure the best possible purchase price and favorable terms. Their expertise in handling negotiations can make a significant difference in the outcome, ultimately saving you money and providing peace of mind. Objective and Unbiased Advice: Emotions can often cloud judgment when it comes to buying property. With their objective viewpoint, buyers advocates provide unbiased advice based on market data and their understanding of your specific needs. They prioritize your best interests, helping you avoid common pitfalls and making decisions that align with your long-term goals. Post-Purchase Support: The role of a buyers advocate extends beyond the purchase transaction. They can assist with various post-purchase tasks, such as coordinating inspections, guiding you through the settlement process, and connecting you with trusted service providers for property management, renovations, or any necessary repairs. Their ongoing support ensures a smooth transition into your new property, alleviating any additional stress or complications. Now that you have a better understand of what a real buyers advocate can do for you, let us delve deeper into the world of buyers advocates. Within the world of real advocates, you might have heard of: larger, well known specialised buyers advocacy businesses, and you might have heard of some Sales Agencies running their own "Buyers Advocacy" business, and then, you have the smaller independent, lesser known boutique brands in the market. The above can be briefly summarised into this table: Importance of Independent Buyers Advocates Independence is a choice. Being independent is not easy. It is 5 to 10 times tougher running a truly independent Buyers Advocate Agency. And without the integrity and passion of wanting to do the right thing to genuinely help property buyers, many new buyers advocates eventually turned to the dark side of sales and fake buyers advocacy with the lure of easy money and lucrative commissions. The secret with Sales Commission If you had not come across this blog, and if I were to ask who is paying the sales agent their commission when you buy a property? 99% of the buyers believe the commission are paid from the seller. This is where you are WRONG. Very wrong. Many buyers wrongly believed that they need not care about these commissions. Little did most realise, when the vendor or seller sets their property up for sales, the prices they see include the commission to be paid to the sales agents. It works like this. The vendor has a price in mind. Then they add the marketing costs, sales agents commission on top of that, to determine the price they want to achieve. IE, The property's selling price buyers see includes the sales agents commission. So, buyers NEED to understand, if they are buying without a genuine buyers agent on their side, they are 90% likely to end up overpaying. This is a gray area which sales agency backed buyers agents are playing in. Very often they claim they are helping buyers for free. It's not. they are receiving commission, either from the developer or sharing it with other agents. And by them receiving a payment from the seller, they are sales agents. They are required, by law, to ensure the seller is protected, ensure they fetch the best price FOR THE SELLER. They no longer work for you, if they're paid by the seller. So, with everything stacked against the buyer, who can buyers turn to? The genuine Buyers Advocates. How are Genuine Independent Buyers Advocates different? When you pay for a buyer's advocate service, you are ensuring the buyers agent is working only for you. And they are legally required to look after your interests in the property purchase. There's no if and buts. It is written the the real estate legislations. With a genuinely independent buyers advocates you get: Objective Guidance and Advice: Independent buyers advocates operate without concerns for conflicts of interests. They work, focusing solely on your best interests. Their unbiased advice helps you find the right property at the right price, without any external influences clouding their judgment. You are buying something you want, not something they need to sell. Unparalleled Advocacy: Independent buyers advocates are your dedicated advocates throughout the entire buying process. They work solely on your behalf, looking after your needs, preferences, and objectives. Their loyalty lies with you, allowing them to negotiate fiercely to secure the best possible deal. With their expertise and commitment, they act as your expert ally, protecting your interests and ensuring a successful outcome. Access to a Broader Market: An independent buyers advocate has access to a wide range of properties on the market. They are not limited to a specific stock that the agency is selling, or biased towards certain sellers. This means they can source from all available options and present you with a comprehensive selection tailored to your requirements. Their extensive network and industry connections provide access to a broader market, including off-market opportunities that may not be accessible to others. Extensive Market Knowledge: Independence allows buyers advocates to provide objective insights based on their comprehensive market knowledge. They continuously analyze market trends, property values, and emerging opportunities. Their deep understanding of local neighborhoods, zoning regulations, and future developments can be invaluable in guiding your decision-making process. With their expertise, you can make informed choices and seize opportunities that align with your long-term goals. Transparency and Trust: Choosing a real independent buyers advocate means transparency and trust are at the forefront of your relationship. You do not need to second guess their hidden agenda. You do not need to wonder if they have any conflicting in interests. Because there are none. Independent professionals prioritize clear communication, keeping you informed every step of the way. They provide honest assessments, ensuring you have a realistic understanding of the market and property values. Their commitment to transparency builds trust and fosters a strong partnership, empowering you to make confident and well-informed decisions. Personalized Service and Attention: With an independent buyers advocate, you receive personalized service and undivided attention. They take the time to understand your unique needs, preferences, and financial situation. And they tailor their approach and recommendations to your specific requirements. Unlike the "wealth creation" marketing agencies, who simply sells what they have as your solution. They can identify properties that truly align with your vision and maximize your satisfaction. Their dedication and commitment to your success set them apart, elevating your experience throughout the entire buying process. Lower fees: Independent buyers advocates save costs by not paying for to brand royalty or maintaining a physical office. They don't organize expensive "free investment seminars." This cost-saving approach allows for lower fees compared to brand name buyers advocates. Such insurance, marketing and branding overheads adds between $5,000-$8,000 per client. And this explains why brand name buyers advocates tends to charge between $5,000-$20,000, more per purchase. Genuine Independent Buyers Advocates are Protecting Buyers Purchasing Interest Choosing a real independent buyers advocate is crucial for a successful and fulfilling property acquisition journey. Their objectivity, unwavering advocacy, and extensive market knowledge empower you to make informed decisions and secure the best possible outcome. By placing your trust in an independent professional, you gain a valuable ally who works solely in your best interests, ensuring that your buying experience is transparent, personalized, and ultimately rewarding.

Thinking of buying properties in a cooling (falling) market? Why not? Afterall, in a cooling market when not many buyers dares to buy, you can sometimes pick up very good deals. Here is what you need to know if you are planning to buy. Our property buyers advocates will show you: Should you buy in a cooling market? How to buy in a falling market? What should you buy? What should you watch for? What types of properties should you buy? What strategy is best for buying in quiet times? What types of properties will sell fast in a cooling market? Should you buy properties in a cooling market? Short answer: Yes. Buyers can buy in a cooling property market. And it is probably the best time to buy. But, should you buy? Yes, if you can afford it and afford to hold it for a year or two, through the downturn. In the Melbourne property market, Time in the market is a lot better than timing the market. The only bad time to buy, is to WAIT, and that includes waiting for the prices to bottom. Historically, Melbourne property prices have been growing at an average of 7% annually. Yes, that include GFC, Covid-19 pandemic, high interest rates, recessions, etc. Property buying and property investments are for the long term. Investors in Australia typically hold on to their investment properties for about 7 to 10 years. With a growth of about 7% annually, that means house prices will double every 7 to 10 years. Why wait for prices to drop a further 2-5% when you have 100% gain in 10 years time? Yes, you might save a further $50k, but, that's how much buyers advocates like us typically save our buyers anyway. One other fact is, buyers waiting for the bottom, have NEVER bought at the bottom. They are always 3 to 6 months too late. And by then, there will be all other waiting buyers and enough FOMO in the market to push prices a lot higher quickly. How do you buy in a falling market? Buying in a falling (cooling) market is similar to buying in a booming market. Do your due diligence, find the type of properties you want, and buy. In a falling market, you might have more time to do your due diligence, so, you have less of an excuse not to do it properly. Some good properties do sell fast, in a falling market though. What should you buy in a cooling market? Anything, really. Anything you need to set yourself up for success. As a buyer, you should understand that the Melbourne property market is made up of multiple sub markets. While some markets are cooling, some are still rising. When our buyers advocates analyse properties, we categorise them into 3 grades. Grade A - those in blue chip areas, good location, tip-top, move in condition. Grade B - those in lesser locations, and those that are generally in a move-in condition, but can do with some renovations. Grade C - those in lower socio-economic areas, and need extensive renovations. While the Grade Bs and Cs might fall, you might be expected to pay above asking price for the Grade As. Choose a property that fits your investment plan and strategy. Whichever you buy, there is definitely going to be lesser competition. What should you watch out for? As with any buying properties in any other times, watch out for property spruikers. Those who claim off-the-plan apartments will give you the riches to let you retire early... They are just feeding themselves with the huge commissions from the developers. They are the ones who will be retiring early, while you are still paying off your depreciating apartments or trying to dispose them. What types of properties should you buy in a cooling market? What you should buy, depends on your home or investment property buying goals. If you prefer something newish, in a move-in condition, go for the Grade As. But, do be prepared to pay more for them. You might even need to pay above market prices, if they are popular. If you are after the Grade Bs and Cs, you're in luck! Grade Cs deals are readily available now. While prices of these properties were insane in the past couple of years, vendors are very realistic now. Choose a property that fits your investment plan and strategy. Whichever you buy, there is definitely going to be lesser competition. What strategies are best for buying in quiet times? Buy when you can. Not timing the market. This is the strategy we've asked our successful investors to adopt. Go for the Grade As if you want something to live in, or to lease out for a premium. Go for the Grade Bs if you want something you can improve, and potentially fetch a higher rent. Go for the Grade Cs if you are a handy person, and you are prepared to get your hands dirty. Do note though, not all repairs or renovation works can be done by a handyman. You may need to get the relevant council permits and licenced contractors to do certain pieces of work. Where can you get help to buy? If you are not sure of where and how to buy in this quiet times, get in touch. Our buyers advocates are available to readily take over your buying headaches.

As the property market cools, and auction clearance rates falls, we're seeing a lot of properties being passed in at auctions in recent months. Frenzy biddings at auctions are a rare sight in most auctions now. When a property did not sell in the auction, it is known as being "passed in". What happens when a property was passed in at auctions? How do you negotiate for the property? Why did a property get passed in at auction? First, let's understands the basics. Property get passed in at auctions because the bidders at the auctions could not or would not meet the reserve price for the properties being auctioned. And, in some cases, there simply isn't any bidders for the property at all. That happens when an auction process is used for a property sales campaign, when it should not be. Inexperience, seller's demand or rapidly changing market condition are the primary reasons for this. What happens when a property did not sell at an Auction? A few things can happen when the hammer falls (or did not fall in this case) at the auction, and the property is left without a buyer. First and foremost, the property is considered passed-in, and unsold. There are no buyers. But what happens next? What happens next, depends on what happened during the auction, and the state the auction is held. Each state in Australia has their own variation of auction process and rules. In most cases, it can take one of these scenarios: Bidder with the highest bid usually get the first right to negotiate with the vendor and agent. Property is put back on the market, often as a private sale. Property is taken off the market. Vendor decides to change the real estate agent and/or marketing strategy. Property is being repossessed by the mortgagee. If the auction gives the highest bidder the first right to negotiate, and if you are not the highest bidder, you probably would not be invited for negotiation. Some more diligent agencies will also monitor who the 2nd highest bidder is, and leverage your presence and bid against the highest bidder. What is the First right to Negotiate after an auction? The first right to negotiate means you will be the first to be invited to the negotiating table. The auctioneer will not invite anyone else, and you will be the only person negotiating with the sales agent and / or seller, after the auction. In most auctions, the bidder with the highest unsuccessful bid will usually get the first opportunity to negotiate with the vendor and/or agent. This negotiation phase is when the pressure sell starts. It is usually yourself against a team of experienced sales agents and negotiators working together, against you, to "help you buy" that property. They are negotiating everyday, and they had been observing you, your body language, and your reactions throughout the auction, trying to gauge how much you wanted the house, and how deep your pocket is. And trust me, the negotiators will go for every cent you have. They are experienced and are trained for that. It is in the vendor's interests and the agent's interests that a deal is struck there and then, because properties sold at auctions (and within 3 days after auctions, in Victoria) are unconditional. It is a confirmed sale, and if your offer is accepted, you are legally obliged to buy it unconditionally. If you think the auction was pressurising, this stage will be at least 10 times more pressurising. Both the vendor and agents have the need to sell. The agents want their commission. The vendor wants to offload the property. And there you are, the buyer sitting alone in the room, with a team of them against you. They are trained and they are keen to make you buy for top dollar. It will take as long as it is necessary to negotiate. It could be minutes or it could be hours. And if the negotiation fails, the property is usually put back on the market, opened to all other purchasers, if it is not taken off market. How do you negotiate for a property after it has been passed in at auctions? Now, if you did not have the first right to negotiate, and if the property is put onto the market without a buyers, here is what you need to do. While doing your due diligence for the property, you would have an idea what the property is worth. And you would hopefully, got your darts in a row, and know how much you can afford to pay for it. Couple of question you need to ask yourself: Is your budget still relevant to the property? Are the owners expecting a lot higher than your budget? What was the real reason why the property passed in during the auction? How do you start buying a property which was passed in at an auction? When you come across a property that had been passed in at an auction, contact the agent. Some sales agents may openly tell you it had been passed in at an earlier auction, while some agents may needs a bit of prompting before they disclose this. Good buyers agents would usually have the right tools and market informant to access these information. Sales agents know they cannot get away with lying to buyers agents, and so, most sales agents are usually upfront and honest with buyers agents. After all, no one wants to look silly, and be caught lying when the information is already known. Understand your local laws on auction and sales made before and after the auction. In Victoria, sales made within 3 days before and after the auction, is unconditional. Ask yourself how badly do you want this property? If you want it so badly that you are happy to buy it unconditionally, put in an offer whenever you are ready. Otherwise, avoid that 6-day window. Sales agents would definitely want your offer within that windows, but you know the risks, if you do. What do you need to do before you make an offer for a property that was passed in? If you are interested in a property that had been passed in at an auction, you should always treat this as a newly listed property. You will need to redo your due diligence, even if you have already done your due diligence prior to the auction. There must be a reason why a group of buyers did not offer a good enough price for the property and thus, it DID NOT SELL during the auction. And you need to determine that. A few questions that needed answers include: Was the price too high? Was the vendor's expectations unrealistic? Was there something wrong with the property that you weren't aware of? What are the vendors expecting? What is a reasonable price for the property? How do you negotiate for a property that was passed in? Negotiate as if it is a new listing. Obviously, the group of bidders at the auction did not think the asking price was reasonable. Will you pay that price? You might, if you want the property bad enough, but, as buyers advocates, we wouldn't. As with any negotiations, you are against a team of professional negotiators. Our negotiation service can help you negotiate for the best outcome. Get in touch if you are keen with our services. It is ok if you choose to negotiate on your own. Just be firm, know what the property is worth, know what you want to pay, and negotiate. Will a property that got passed in at an auction sell at a lower price? No. It is not necessarily true. It depends on who the bidders were during the auction. And what the reserved price was. If the bidders at the auction happened to be unrealistic under bidders, the vendors definitely will not want to accept the low-ball offers. A townhouse in Melbourne South East suburb of Pakenham, with a price guide of $500k, was passed in at an auction which we attended last year. The highest bid of $470k during the auction did not meet the reserve price. Subsequent negotiations with the vendor and sales agents closed the sale at $538k. The sales agents definitely did a good job at negotiating for the vendor, as the price was way above market value. We initially shortlisted this property for a client, but we walked away from the purchase as we could not see value at that $538k price point. Will a property that got passed in at an auction sell at a higher price? No. Again, this is not necessarily true. It, again, depends on who the bidders are during the auction. And what the reserve price was. If the reserve price was too high for the property, bidders who had done their due diligence correctly, will definitely not want to pay that. Imagine overpaying for a property? You could be overpaying, sometimes, by half a million dollars. A house which we bought in Melbourne inner-city suburb of Ashwood, was passed in at an auction, with a highest bid of around $2.75 million. It obviously did not meet the reserve price, and subsequent negotiations by the sales agents failed to secure the sale. This house with a valuation of about $2.7M was subsequently re-listed for private sale, with a single price of $2.55M. As buyers advocates acting on behalf of our client, we made our offer, negotiated, and bought this property for $2.45M. A massive $300k cheaper than the highest auction bid and a $100k savings from the post-auction list price. The sales agent subsequently revealed that the property had a reserve of "around $3M", during the auction. Ie, if there was a successful bidder, they would have to pay at least $3M, during the auction. And we managed to bought it for a massive $500,000 savings post auction! Advice for Property Buyers With property auctions and making offers for a property, it is all about knowing what price to pay and when to walk away. Winning at property auctions is not always about successfully buying the property during the auction. You are way ahead of other property buyers when you know the market value. Know what the property is worth, and know when to walk away. You will definitely not want to pay more than an over-payer at any auctions. If you're unsure of the market, engage a professional Melbourne based buyers advocates who knows the local area to do help buy it. In the second example in this blog, the client paid a relatively tiny $20,000 buyers' advocates fee and in return, it saved them a whopping $500,000 when you realise it had a auction reserve price of close to $3million. Property Negotiation Service from Concierge Buyers Advocates Our property negotiation service helps buyers understand the valuation of the property, and negotiate and buy the property for the best possible price. Our Negotiation Plan will help you to negotiate up to 3 properties or an discounted upgrade path to our full buying service, giving you the comfort and confidence that we will have your back. Get in touch More home and investment property buying news and tips here.

Property investment through a Self-Managed Superannuation Fund (SMSF) involves using the funds within the SMSF to purchase and hold investment properties. A SMSF is a private superannuation fund that you manage yourself, giving you greater control over your investments compared to traditional superannuation funds. Property investment is one of the options available for diversifying and growing your retirement savings within an SMSF. You can also use SMSF to manage other assets, but these are outside the scope of this article. To start off this article, let's take a look at what is SMSF. What is SMSF? In the Australian context, a Self-Managed Superannuation Fund (SMSF) is a private superannuation fund that individuals can establish to manage their own retirement savings. It is a legal structure designed to help hands-on investors save for their retirement and provides members with greater control over their investment decisions, investment strategies compared to traditional superannuation funds. How do you use SMSF to invest in properties? There are a few ways to start property investment through a Self Managed Super Fund (SMSF). Generally, here is hot investment through an SMSF works: Structure: An SMSF is set up with individual trustees or a corporate trustee. The trustees are responsible for managing the fund's investments and ensuring compliance with superannuation laws. Investment Strategy: Trustees develop an investment strategy that outlines the fund's objectives, risk tolerance, and asset allocation. This strategy guides decisions about investing in property and other assets. Property Purchase: The SMSF can use its available funds to purchase a property. The property can be commercial or residential. If the SMSF does not have enough funds to purchase the property outright, it can also use limited recourse borrowing arrangements (LRBAs) to borrow money for the purchase. Borrowing: LRBAs allow the SMSF to borrow funds from a lender to purchase a property. The property itself is used as collateral for the loan, and the lender's recourse is limited only to the property in case of default. This minimizes the impact on the SMSF's other assets. Ownership and Compliance: The property is owned by the SMSF, and all legal and regulatory requirements must be followed. For example, the property must be purchased at market value, and all expenses related to the property (e.g., maintenance, insurance, property management) must be paid from the SMSF's funds. Rental Income: Any rental income generated by the property is received by the SMSF and contributes to the fund's overall returns. Rental income must be used for the fund's expenses or invested according to the fund's investment strategy. Capital Gains and Tax: Any capital gains made from the sale of the property are subject to capital gains tax (CGT) within the SMSF. Different tax rules apply depending on whether the property is sold during the accumulation phase (before retirement) or the pension phase (after retirement). Compliance and Reporting: Trustees of the SMSF must ensure that the property investment complies with superannuation laws and regulations. This includes record-keeping, reporting, and adherence to the fund's investment strategy. It's important to note that property investment through an SMSF comes with responsibilities and considerations, including legal and regulatory compliance, costs associated with property ownership, and potential risks related to market fluctuations and property management. Before deciding to invest in property through an SMSF, it's recommended to seek professional advice from financial advisors, accountants, and legal experts with expertise in SMSFs and property investment. These professionals can guide you through the process, help you understand the risks and benefits, and ensure that your investment aligns with your retirement goals and complies with all legal requirements. Not Financial Advice Disclaimer General Advice Warning: This general information is meant for general educational purposes only. It is not professional financial advice from Concierge Buyers Advocates and does not take into account your personal needs and situation. You should not take this as your personalised and tailored financial advice. Concierge Buyers Advocates not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article. Always seek appropriate financial advice. We have a panel of advisor partners who will tailor their advice based on your personal situations.

A Self-Managed Superannuation Fund (SMSF) is a private superannuation fund that you manage yourself, rather than relying on a managed fund or retail superannuation fund. SMSFs can offer several benefits, but it's important to note that they also come with responsibilities and risks. Let's cover the benefits in this article. We will cover the risks in a separate article here. Benefits of SMSF Here are some potential benefits of having an SMSF: Investment Control: One of the main advantages of an SMSF is the ability to have greater control over your investments. You can choose where to invest your fund's assets, which can include a wide range of investment options such as shares, property, cash, and more. Tailored Investment Strategy: With an SMSF, you have the flexibility to create an investment strategy that aligns with your financial goals and risk tolerance. This level of customization may not be available in other types of superannuation funds. Cost Efficiency: Depending on the size of your SMSF, it may be more cost-effective than traditional superannuation funds. This is especially true, if you have a substantial amount of funds to manage. On the flip side, if you do not have a large enough amount of funds to manage, the overheads and additional costs can be a significant cost to the SMSF. Tax Planning: SMSFs can offer tax advantages through effective tax planning strategies. You have control over timing and allocation of contributions and withdrawals, which can have implications for your tax liability. Your tax accountant or SMSF consultant will explain the situation specific to you. Estate Planning: SMSFs can provide more control over how your superannuation benefits are distributed upon your death, allowing for more tailored estate planning strategies. Borrowing for Investment: SMSFs can borrow money to invest in certain assets, such as property. This can provide opportunities for leveraging investments that might not be available in other superannuation funds. In the case of getting a loan for an investment property under a SMSF, you may also find some restrictions in borrowing, which we will cover in our article on risks of property investment through SMSF. Consolidation of Assets: If you have multiple superannuation accounts, consolidating them into an SMSF can simplify the management of your investments and potentially reduce fees. Family Involvement: An SMSF can have up to four members, which can include family members. This can facilitate intergenerational wealth planning and management. Direct Ownership of Assets: With an SMSF, you can directly own assets like property and shares, potentially leading to greater transparency and control over your investments. Flexibility in Payouts: SMSFs offer flexibility in how pension payments are managed, which can be beneficial during retirement. Asset Protection: This is probably a good consequence of investing properties with a SMSF. By virtue of the strict superannuation fund rules, SMSF can offer better asset protection than most other methods. We will cover this in a later article. However, it's important to note that SMSFs also come with responsibilities such as compliance with legal and regulatory requirements, administrative tasks, investment decisions, and record-keeping. There are also costs associated with setting up and maintaining an SMSF, including professional advice and administrative expenses. Before establishing an SMSF, it's crucial to carefully consider your financial goals, level of investment expertise, and willingness to take on the associated responsibilities. Seeking professional financial and legal advice is highly recommended to ensure that an SMSF is the right choice for your individual circumstances. Talk to us about investment through a SMSF. Our consultants will tailor their advice to your specific circumstances. Not Financial Advice Disclaimer General Advice Warning: This general information is meant for general educational purposes only. It is not professional financial advice from Concierge Buyers Advocates and does not take into account your personal needs and situation. You should not take this as your personalised and tailored financial advice. Concierge Buyers Advocates not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article. Always seek appropriate financial advice. We have a panel of advisor partners who will tailor their advice based on your personal situations.