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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.

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. 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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.

Investing in properties through a Self-Managed Superannuation Fund (SMSF) can be a complex but potentially rewarding endeavor. Here are some important considerations to keep in mind when investing in properties with an SMSF: 1. Sole Purpose Test: The primary purpose of an SMSF is to provide retirement benefits to its members. Any investment, including property, must be made with the sole purpose of benefiting the fund's members in their retirement. This means that you cannot use the property for personal purposes or provide benefits to related parties outside the scope of the fund's purpose. Legal and Regulatory Compliance: SMSFs are subject to strict legal and regulatory requirements. Ensure that your property investment complies with all relevant laws and regulations, including restrictions on certain types of property (such as residential properties acquired from related parties) and borrowing limits for property investments. Investment Strategy: Develop a well-defined investment strategy that aligns with the fund's objectives and risk tolerance. Consider factors such as rental income, potential capital growth, and the property's contribution to the fund's overall diversification. Property Selection: Choose properties that are likely to generate rental income and have potential for capital appreciation. These days, a property with both yield and growth from Day One is very rare, so, you will usually need to choose one. Research the location, rental demand, vacancy rates, and property market trends before making a decision. Borrowing Considerations: SMSFs can borrow money to purchase property through limited recourse borrowing arrangements (LRBAs). Understand the rules and restrictions associated with borrowing, including repayment terms, interest rates, and potential impact on cash flow. There are also a lot less lenders who are willing to lend to a SMSF, as there is almost zero chance they can repossess the property if you default on the loan. This reduced competition, plus the higher risk (to the lenders), means the available lenders tend to charge a higher interest rates, plus reduce the loan to value ratio (LVR). Investment Structure: Property investments can be held directly by the SMSF or through a separate entity known as a special purpose vehicle (SPV). Consult with a experienced and qualified professionals / accountant to determine the most suitable structure for your specific circumstances. Financing and Cash Flow: Assess the fund's ability to meet mortgage repayments and other property-related expenses. Adequate cash flow is essential to avoid financial strain on the SMSF. Property Management: Property management is crucial for rental properties. Decide whether the SMSF will manage the property itself or engage a property management company. Consider the associated costs and responsibilities. It is always attractive to manage the property rental yourself, to save costs, but with the ever changing rental property rules and SMSF requirements, you need to be well-versed with the responsibilities and regulations around both. Property Expenses: Factor in ongoing expenses such as property maintenance, insurance, council rates, and property management fees when evaluating the potential return on investment. Valuation: Property held by an SMSF must be valued at market value. Regular valuations are necessary to ensure accurate reporting and compliance. Thus you need to factor the effort and cost involved in organising the valuations. Diversification: While property can be a valuable addition to an investment portfolio, diversification is important to manage risk. Avoid over-concentration in one asset class or location. Exit Strategy: Have a clear exit strategy in place for the property investment. Consider how and when the property will be sold, especially as you approach retirement and need to access the fund's benefits. Unlike traditional investment funds, selling your property can take between 2 to 6 months or more. Professional Advice: Seek advice from professionals experienced in SMSFs, property investment, accounting, and legal matters. This can help ensure compliance, effective decision-making, and the avoidance of costly mistakes. Costs and Fees: Property investments can incur various costs, including property purchase costs, property management fees, legal fees, and SMSF operational costs. Factor these costs into your investment calculations. Long-Term Horizon: Property investments are typically best suited for the long term. Consider whether the investment aligns with the fund's long-term retirement objectives. Remember that property investment within an SMSF is a complex process, and the rules and regulations governing SMSFs can change over time. The Australian Tax Office (ATO) is very strict with SMSF compliance, and the investor should be ready for any audits. It's crucial to stay informed, seek professional advice, and regularly review your investment strategy to ensure that it remains aligned 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. Advanced investors and investors with significant funds in their superannuation funds have been turning to using SMSF as an structure to hold and manage their investment properties as their retirement portfolio . We've covered the benefits of property investing through your SMSF , but what are the risks? 12 Risks of Property Investment through SMSF While Self-Managed Superannuation Funds (SMSFs) offer potential benefits, they also come with various risks and challenges that individuals need to be aware of before deciding to establish and manage one. Some of the key risks associated with SMSFs include:

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. We've covered the benefits of property investing through your SMSF , and risks of poorly managed SMSF , but are there any asset protection benefits? Property Investment Asset Protection with SMSF SMSF wasn't designed with the traditional purpose of asset protection in mind. But it may provide some good asset protection for certain situations. Here's why:

You would have heard of Glen Waverley Secondary College and how entry to its school is so competitive that property prices within the school zone is worth about 30% more than similar houses outside the school zone. In fact, you probably landed here while searching for Glen Waverley Secondary College properties. But, did you know, Glen Waverley Secondary College is not the only good public school in City of Monash? There are another 2 good secondary schools within Glen Waverley, and Brentwood Secondary College is one of the 2. Brentwood Secondary is probably the quiet achiever in the area. It is producing top students consistently every year, but it does this in a different way. Compared to Glen Waverley Secondary College, the teaching staff and students at Brentwood Secondary College embraces diversity a lot more. And by diversity, we mean students of ALL background. Different ethnic background, cultural background, education background, study needs, etc. It has a strong emphasis on student wellbeing and magically mixes study with fun and care, a lot better than Glen Waverley Secondary College. As buyers agents based in Glen Waverley, home buyers have been consistently asking us to help them break into the ultra competitive property market in Glen Waverley. We've been honoured to have helped many families buy their homes in the Brentwood Secondary College School Zone, enabling their children's enrolment into the Brentwood Secondary College, one of the top government secondary colleges in Victoria. For more information about Brentwood Secondary College the school zone and Glen Waverley, follow our link Glen Waverley Brentwood Secondary College Properties Buyer's Advocate . We are local to Brentwood Secondary College and we have been helping home buyers and investors find and buy properties in the Brentwood Secondary College School Zone. Get the facts right. Get it from a Buyers Advocate in the area. If your kids' and your circumstances fits the school enrolment criteria, we'll ensure you get the right property to qualify for enrolment into the Brentwood Secondary College. No other buyer agents can be so confident to get this right. Brentwood Secondary College vs Glen Waverley Secondary College So, how does Brentwood Secondary College compared with Glen Waverley Secondary College? Here is a brief of Brentwood Secondary College vs Glen Waverley Secondary College, compiled through student interviews and other public domain information. Where is the Brentwood Secondary College School Zone? The Brentwood Secondary College school zone (BSC/BSZ) is a tiny area of about 1 km by 2km around the school. Compared to other Secondary Schools of similar size in the Eastern Melbourne suburbs, Brentwood Secondary College has a smallish catchment area. This is primarily due to the fact that the secondary college is flanked by a few other secondary colleges in the area, and around Glen Waverley. The main secondary colleges flanking Brentwood Secondary College includes Glen Waverley Secondary College (GWSC), Mount Waverley Secondary School (MWSC), Wheelers Hill Secondary College, South Oakleigh Secondary College, Westall Secondary College and Wellington Secondary College. Why is Brentwood Secondary College so popular? Brentwood Secondary College has been consistently and quietly producing student with outstanding VCE results. It is one of the more competitive secondary schools in the Eastern Melbourne area, due to the quality of students it attract, and the academic curriculum and emphasis on student wellbeing. As the Brentwood Secondary College catchment area is relatively small and student capacity is limited, the school has to enforce its enrolment criteria strictly. Students have to meet strict residency criteria, before being considered for enrolment. These criteria includes where the student is residing in, if the student has any other siblings in the college, etc. The enforcement of these criteria are tweaked annually according to the expected student intake. Criterias are known to be added, modified or relaxed. Why is it important to get the right property in Glen Waverley? Because of strong enrolment competition into secondary colleges such as Brentwood Secondary College in Glen Waverley, prices of properties in its catchment areas in Glen Waverley and Wheelers Hill can vary a lot. The right properties in the Brentwood secondary school catchment area can be worth a premium above similar properties outside the school zone, and this gap is slowly widening, as the profile of the school rises and becomes more popular. What this means for buyers is, you need to choose the right properties, so you do not overpay or missed getting into the school zone. What happens if you are living just outside the school zone? Well, I'll say tough luck. Chances are, you will likely end up in your local school. Brentwood Secondary College is popular, and demand from students within its catchment usually outstrips the student capacity. As a public school, it follows standard Victoria Secondary School enrolment guidelines. It has no obligations to accept students, if they do not reside in the school zone. So, when it comes to enrolment, and selecting your secondary school, it will help if you simply apply for your local school. How to find the right property in the Brentwood Secondary School Zone? To find the right property for Brentwood Secondary College, you will need to know where the catchment is. You need to be exact. Brentwood Secondary College has been known to enforce its enrolment criteria quite strictly. Demand from students within its school catchment area outstrips the student capacity. And, as with standard Victoria Secondary School enrolment criteria, it has no obligations to accept students not residing in the school zone. Students had been rejected even if they are just 1 house on the wrong side of the school zone. You will also need to know the prevailing enrolment criteria, etc. If you need help to find the right property for the school, get in touch with us. We have been helping home buyers find the right property for the school since we started our buyers advocacy business. 100% of our clients buying their homes for the school, have been able to buy one that qualifies. Give our buyers advocates a call, to discuss how we can help you buy your home in the Brentwood Secondary School zone. Head over to Heraldsun to check how Victorian schools had been performing over the last 5 years. How every victorian school performed in naplan over five years.