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One of the most effective property investment strategies is to never have card access to the account, or bank where your salary lands. The history of savings. Where it all began. Years ago, everyone was paid cash weekly. Everyone knew you had to go straight home, hide money in envelopes, tins, under the mattress, or in a bank (because you could only get it out by going back into the bank). Then you put aside a portion as your pocket money to go back down the pub with, or spend on whatever you wanted. The only people who walked around with their whole pay in their pocket, were drunks, gamblers and idiots. "A fool and his money are easily parted" "money burns a hole in your pocket" were common phrases for centuries. Then companies found it cheaper and easier to pay automatically into people's bank accounts and change from weekly to fortnightly or even monthly. This was initially ok, because we’d have to withdraw cash out from the bank as pocket money or we could write a cheque. Then someone invented the debit and credit cards, which seemed wonderful, but savings rates across the developed world plummeted and never recovered. Now most people open their first bank account in order to access their first pay and from then on, spend their adult lives walking around with a card that lets them access every cent of it. Judging by our grandparents standards, that makes us all drunks, gamblers... If you do not believe, take a look back at your last 6 months transactions and see how much has been disappearing without you realising. How do you control this spending? It is easy to open up a new bank account with another bank (to avoid the temptation of the quick account transfer) and automate a WEEKLY pocket money transfer. And by doing this, you have suddenly found a way to control your unconscious spending. If you’ve got the money for coffee, Uber eats, or avo on toast, go for it, but once the money is gone, stop spending until next week's allowance lands. We can all cope for 2-3 days with no money, but half a fortnight, or half a month is impossible. Use the pay account to cover bills and automate as much savings as possible to your debt, or savings account. Please try to learn the lessons from history, don’t gamble, don’t drink to excess and don’t be an idiot! Disclaimer: this is not financial advice, and the story given here may or may not be applicable to your personal circumstances. Always seek appropriate financial advice.

How much does it cost you to search for a property on your own? Make a guess. NOTHING? ZERO? ZILCH? ​​Would you believe if I say it could cost you $133,000 to buy a property yourself? And using a buyer agent can save you more than $100,000? And $500,000 in one instance? ​ Really? This article will walk you through the numbers, and why buying too slowly and not using a buyers advocate to help buy faster can cost you a lot more than you think. ​​ Let us look at the Property Buying Facts and Figures UBank’s research has revealed that it can take up to 12 months for a person in VIC to find the perfect property. That’s an entire year of searching through countless properties, trying untested tips, and losing out on rental yields. On top of that, property prices are rising at an average of 6.8% annually [Corelogic]. This means that if you take a year to find a property, you'll miss out on that 6.8% increase in equity, and end up paying 6.8% more for a similar property when you eventually find one. To put this in perspective, let's consider the median Melbourne house price of $833,000 (2018) and a median rental of $420 per week. If it takes you 12 months to buy a property, you will miss out on $21,000 in rental yield and $56,000 in equity growth, and you will end up paying $56,000 more for a similar property when you eventually buy one. That's a total of over $133,000 lost! This figure does not even include the additional stamp duties paid, the time spent researching and travelling to inspections, and so on. If it is an investment property that you are buying, this means you'll be making $133,000 less in that property alone. It's no wonder that more and more savvy and busy property buyers are engaging the services of buyers agents to save them time, money, and the hassle of navigating the property market. ​​ What happens when you use a Buyers Agent?​ Depending on the complexities of a purchase, it usually takes our Buyers Advocates an average of 2-3 months to find the property. About 50% of our lucky clients take as little as 1 month for their purchase. Yes, it might cost you on average of 2-2.5% in buyers agent fees, but, remember, you get rental incoming coming into your bank account 6 to 9 months sooner! And you benefit from the 6.8% equity appreciation sooner! You are still up to 4.3% better off with a buyer's agent in the first year! ​ When you consider the missed opportunity, engaging a professional Buyers Agent like us, is suddenly a cost effective, and smarter way in your property search journey. ​ Have a no obligation discussion with us. Mention this article and we will be pleased to offer a special deal just for you.

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 properly licenced and insured legal ones, and there are those who fly by night, here today, sell you a house, and disappear by night. Then there are the sales agents who are also willing to help you buy, without charging you any fees. With so many to choose from, how do you know who are the legit, genuine Buyers Advocates (or Buyers Agents)? How do you know who are the ones you can trust? And, is there really such a thing as a free lunch? What should you know about the "free" buying agents? It may shock you that they could cost you dearly. This is something very difficult to monitor and police. So, we will attempt to explain the different types of 'agents' in this blog. By the end of this article, you will know how to differentiate the legit 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 real estate agents have to be licenced? First off, let us explain the basics. Why must real estate agents be licenced? Everyone knows real estate transactions typically involved millions of dollars. It is usually a big ticket item which most buyers are, unfortunately, buying blindly. Not many buyers really know the whos, whats whens, wheres, whys of buying a house. Because of this lack of understanding and diligence, there had been too many scams by dodgy sales persons. It is therefore necessary to enforce licensing of these sales people, to protect the consumers - both buyers and sellers. Anyone helping to sell or buy properties are, therefore, 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 the property buyers and property sellers are very well spelt out in these regulations. For the purpose of this article, we'll leave the selling out from this discussion and focus on the buying. Here is what you should know, before you engage any agent who are willing to "help you" buy your property. It could cost you dearly, if you're not aware. But first,... How are real estate agents paid? Like any other professions, the professional agents/advisors are paid for their work. No one is expected to work for free. Not in Australia, at least. True Australians always pay fair price for the goods and services. True Australian believes in being fair. And, in case you do not know, simply by paying the agent, the payor would make themselves the employer, or the "principal" of the person getting paid. This is a very important concept, in any real estate transaction in Australia. All property agents know this. And all buyers should know this. 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. IE., 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 the same throughout Australia. What you should know about buying real estate If you are intending to engage a buyers' agent 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. And the following sections will explain why. 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. The sales guys have a fancy car loan to pay off. If they are not paid by you, how do you think they are paid? Yes, you are probably smart enough to know by now, if you, as the buyer, did not pay your "free buyers agent", they are paid by the vendor / seller / developer of the property. And simply by receiving payment from the seller, even if it is on a co-broke or conjunct basis, it makes the property vendor / seller / developer the "free" agents' principal. Ie., your "free" real estate agent is working for the seller, not you, as the buyer. They are working with the seller to get you to pay maximum price. When they say they can "help" you secure the property, they are helping themselves to your pocket. Remember, their commission is directly proportional to how much you pay for the property. The more you pay, the bigger their commission is. The "free" agents are, in fact, working against you. 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 the "free buyers agent" the seller agent. It does not matter what these "free" agents tell you. The regulations mandates that the agent must always act in the best interest of the payor. Which, in the case of the"free" buyers agent, is the seller. And by being the selling agent, 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 because their commissions are directly tied to how much they can sell the property for. It is sad that in the pursuit of getting "free buyer agent" services, many people are in fact, being unknowingly mislead to paying more for their properties. This is an important fact in the regulations that no seller agents wants you to know. Remember their favourite sales pitch? "Let me help you get this property"... Now that you know their secret, do you think they are really helping you? Who are they really helping? Being the protector of the seller's interest, they will always come back to you to ask for more money. All sales agents are trained to extract the most out of you. What do you need to know when you engage a free buying service? Now that you realise those 'free' buyers agent services are not working in your favour, what can you do? 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. The "best property for you" that they have recommended usually means the highest commission they can receive from the seller and it is usually not be the best for you. Or it could be that one property that they had been trying to sell for too long. They might have come across the property that suits you perfectly, but they are not going to recommend that because they are not paid as much in commission. How do you find genuine real estate Buyer's Agent to work for the buyer? You can turn the tables, by engaging a genuine buyer's advocate (alternatively known as buyer's agent). They are the real deal. They are the one who will protect your buying interest and look after your purchase. That one that buyers can really trust. How do you identify who are the real 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 has no other choice but to look after you, and ensure your purchase is in your interest. And this usually means helping you negotiate for a lowest possible price, or package your offer for the best purchase outcome. In almost all instances, your savings will be worth more than their fees. With our buying services and fees structure, our clients are usually saving 10 to 13 times more than our fees. 13 times return on investment (ROI)? Now are you interested? How do you find a legitimate Buyer's Agent? 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 ensures 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 the 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 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 that 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. Have you heard 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"? If you've been shopping around for real estate, you would have come across them. Is this legal? Are these consultants 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, they need to have the Financial Planning Licence. Are they licenced? If not, why no? Are they charging you a fee for their "mentoring program", and then getting incentives from the developer 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 legitimate 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 legit, licenced buyer's advocate to help with your purchase. The regulations mandates that the licenced agent must look after the person who pays them. The same 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.

Following our other article on determining the property value, this advanced methodology will help you fine tune your estimate and determine the value to a higher degree of accuracy. In our earlier blog, we've touched on the preliminary steps to assessing the value of the property. Briefly, it involved: Know the property you are assessing. Find out as much details and characteristics as you can about the property. Look for other similar properties being sold in the area. Look for similar SOLD properties in the area. Again, find out as much details and characteristics as you can about those properties. Have a good understanding of the demographics of the people living in the area. Have a good understanding of the buyers of those properties in the area. Have a good understanding of the local property market. How to determine a more accurate value for the property? This next step, is going to make a big difference, to the whole process of determining the property value. And this is something which most buyers struggle with, if they do not have enough experience and done enough homework. This is also the most critical step which most "remote Buyers Agents" with hidden agenda would not do for you. You will know why, once you understand the process. So, here it goes...

Did you know? "My friend said so" can be dangerous. Very often, client tells us that they bought their property because their "friends said so" and they have one in the same area". Is this good or bad? Did you know, what works for your friend may not work for you? You and your friends probably have different investment goals, you have different risk appetite, you have different investment timelines. Or even if both properties are similar, did you know there could be restrictions on one property, but not the other? Did you know there could be a water mains pipe under your property that could restrict what you build on it? Almost every conveyancer or building inspector will not tell you this. Your friend might not be bothered with this, but you might, if you planned on developing your property in future. Or your property has an illegal extension which doesn't bother your friend, but might affect your plans and the value of your property in future. Confusing? Mind boggling? This is why a good conversation with a buyer's agent who works with you on your property investment journey is important. He/she will find out what your plans are, and help to make sure the property you get will fit into your investment plans.

The Melbourne property in 2022 was an interesting one. The first half of 2022 was a sellers market, where sellers have the upper hand in a sale. There are more buyers than properties for sale, and that, combined with the low mortgage interest rates pushed prices up 1-2% EVERY MONTH. That's right. Grade A properties in the good areas were rose between 10-12% areas. No one expected the RBA to lift interest rates so quickly and aggressively. Official Cash Rates went from a low 0.1% to 3.1% by Dec 2022. And that caused mortgage rates to more than double, from approx 2.5% to approx 5.5%! This caused an almost instant shift in the property market. Market condition quickly changed from a seller's market to a buyer's market. Towards the end of 2022, vendors who had hold out hoping for a better price panicked. Some rushed their property to the market with realistic pricing and many more started to drop prices. We had been anticipating a rise in interest rates for over a year, and had advised our clients to hold off buying, if there isn't any need to buy. The Melbourne Property market outlook for 2023 If you are thinking of buying properties in 2023, in a cooling (falling) market, you should read this. 2023 is still expected to be a cooling market. At the very least, the first half of 2023 is not likely to offer anything different. Interest rates is still expected to rise. At a much slower pace though. Pain from the high interest is already being felt throughout the economy. People are cutting back from expenses, Businesses can no longer offer to keep staffs, and have started to reduce trading hours, or reduce staffing levels. Speaking to a few business owners, further cost cutting are planned for early next year. And that can include staff reduction. So, the economy in the first half of 2023 is starting to look "cloudy" and uncertain. RBA will have no choice but to look into stopping the series of rate hikes, and potentially start to wind back interest rates by end of the year. Depending on how back each individual property buyer is, interest is expected to pick up again. What should you buy in 2023? We wish there is a one-size fits all answer to this question. This will make our buyers advocates' life so much easier. And if there is all we need a single cookie cutter solution for everyone. Life isn't simple, and buying your home or investment property is at least 10 times more difficult. Every property has a different goal, and every property is different, even if they are next to each other. The best way to answer this question is: Look at what you need, to create a property portfolio that works for you? First, the good news. Good buys are already surfacing, and if you search hard enough, you will find one that is beneficial in your portfolio. but not many people know what to look for and not everyone has access to them. 2023 is the best time to buy anything you need to set yourself up for success. As a buyer, you should always be buying the right property that will set yourself up for success. Even if it is going to be your own Principal Place of Residence (PPR). Why? Because, you will need to sell your PPR one day. For that upgrade, downgrade, moving, migrating, kids inheritance, or simply attracting the buyers with good offers. All property buyers should understand that the Melbourne property market is made up of multiple sub markets. While some markets are cooling, some are still on the rise. When our buyers advocates review properties, especially investment grade properties, we categorise them into 3 distinct 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 optionaly renovations. Grade C - those in lower socio-economic areas, or need extensive renovations. In the current Melbourne property market condition, while the prices of Grade B and Grade C properties might be falling, you might be expected to pay above asking price for the Grade A properties. Choose an investment property that fits your investment plan and strategy. Whichever you buy, there is definitely going to be lesser competition. Next, the bad news. How prepared are you? In times like this, most buyers prefer to sit back, have some popcorns and watch the consolidating property "shit-show". Most buyers became passive and are waiting for the right time (bottom) to buy. In other words, most are trying to time the market. If you are hoping to wait for "the bottom" and buy at the bottom, you are one of the 95% of the property buying population. Don't see the problem? Afterall, what your mates do, will be right for you, eh? Good Luck. This is your bad news. Why is this the bad news? When the market turns, you will be wrestling with 95% of all other property buyers to buy the property you want. Remember Fear of Missing Out (FOMO)? And, the next bad news? So, you're still undecided. What could be the other bad news? Do you have answers for these? Do you know what you need to set yourself up for success? Here are some of the questions you need to answer: what is your serviceability? how much will a bank / lender lend you? what should you buy? where should you look for them? how should you keep monitoring the marker for them? How do you buy Properties in a Buyer's Market like 2023? Buying in a falling (cooling) market is similar to buying in a booming market. Do your due diligence, find the types 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. Good properties are still being sold fast, in a falling market though, so, do your due diligence with some urgency. What should you watch out for when Buying Properties in 2023 (a Buyer's Market)? As with buying properties during any other times, watch out for property spruikers. Especially those who claim and insist that off-the-plan apartments will give you the riches you need to 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. This is not to say apartments are to be avoided. Apartments are the best for some buyers, and our blog on apartment buying will help explain this. What strategies are best for buying in a Buyer's Market? Buy when you can. Not timing the market. This is the strategy we've asked our successful investors to adopt. Again our strategy varies depending on what we buy. Again, we refer to our 3 property grades: 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. Electrical works, gas and plumbing works, extension repairs, pergola repairs, etc will need the relevant council permits and has to be done by the relevant licenced contractors. Grade A properties sell fast. And you might even meet with some strong buying competition. Be prepared to make your best offer for it. Our Best and Final Offer Guide will help you understand what you need to prepare for a best and final offer. While auctions are relatively rare in a buyers market, some real estate agents may still choose to sell the property through an auction, either through inexperience, or misguided information. In which case, check out our series of Auction Winning Guides. These are guides curated by our experienced buyers advocates, who each has over 20 years of property buying, selling and investing experience. Grade B and Grade C properties are where you might be able to get a good bargain or discount. However, in a buyers market, most vendors would have lowered their expectations, and reduce their asking price accordingly. Do know how to determine the value of a property, if you are keen to make an offer. Where can you get help to buy in a Buyer's Market? As you would probably know by now. buying a property, especially in the competitive Melbourne market, is no longer as simple as finding one, putting an offer and expect a success. If you are not sure of where and how to buy in 2023, get in touch. Our buyers advocates are available to readily take over your buying headaches. Lastly, Good Luck with your property journey. Wishing you a successful 2023.

Here is our hard to believe property buying success story. We know buying properties with a good Buyer's Advocate is fast and efficient, but this blew us off our own feet. Honestly. Mr Sxxxx., our repeat client, approached us to buy his next investment property. This is his sixth property. As a seasoned property investor, he knows what he wanted, but he did not have the time to research the market for growth potential, yield, and development possibilities. Neither did he enjoy the stress and disappointments from dealing with over-promising property ads and sales agents. ​ After understanding his property brief, and what he wanted, we started our property buying search and purchase process. Within a couple of days we've shortlisted a handful of potentials. ​ Here is our actual property buying timeline for this property in a regional Victoria city: Day 1: 10.30: Inspect the property. 12.00: Received Contract of Sales and Section 32. 13.00: All boxes ticked. Feasibility study and due diligence checked out. 13.30: Showcase the property to client. 14.30: Green light received. 15.30: Offer submitted. ​ Fingers crossed. ​ Day 2: 10.00: Offer accepted. ​ It is also worth noting that all activities during Day 1 was done while we were still on the roads. Our car is our mobile office. Everything was done in our car. We are mobile and that give us the productivity we need to provide a low-cost buyers agency service. That's the trust our returned client has in us. We understood what he wanted, found exactly what he's looking for, in under 2 weeks. ​ When you spot a good buy, this is how fast you need to be. It'll be gone within hours. Literally. ​ We produce results. ​ * Mr Sxxxx doesn't want publicity, but has allowed us to feature his story.

Many are amazed by the power of AI. So we decided to put one of the most popular AI engines to the test on 18 Jan 2023. We asked OpenAI to write a blog about the current Melbourne Property market. And this is how it went: > Write a blog about the current Melbourne property market. The Melbourne property market is booming right now, with strong demand from buyers and rising prices. In recent months, house prices have shot up by as much as 10% in some parts of the city, while apartments have also seen significant increases. The demand for housing in Melbourne is being driven by a number of factors. A strong economy and population growth are both key drivers, with the city’s population expected to exceed five million by 2041. The city’s affordability and liveability are also factors, with Melbourne having some of the most affordable property prices in Australia and consistently ranking highly in global quality of life surveys. The result is that buyers are increasingly looking to the Melbourne property market for their housing needs. This has caused prices to rise rapidly, with some areas seeing double-digit growth in recent months. This has been particularly true for apartments, with demand for inner-city units increasing as people look to take advantage of the city’s vibrant lifestyle. Investors have also been pouring money into the Melbourne property market, with many seeing it as a safe and lucrative option in the current market. Low interest rates and strong rental returns have made investing in the city an attractive proposition, and many investors are taking advantage of the current market conditions. Overall, it’s a great time to be in the Melbourne property market. Prices are rising, and there is strong demand from both buyers and investors. This is likely to continue in the coming months as the city’s population and economy continues to grow. How do you rate this article? How accurate is this AI generated blog: Information presented here is largely generic. If a reader is well read (which most readers are, these days), they would have read these information many times. What is wrong with this AI generated information Melbourne's population has already exceeded 5million. It exceeded 5 million back in 2019, 3 years ago. AI's views re buying apartments is incorrect. Apartments are seldom recommended, if you do not need the convenience. There is a sever oversupply of apartments in Melbourne. So, resale and valuation of apartments are very often a hundred thousand below Median apartment sold prices might have increased, due to the Melbourne government's Zero stamp duties for apartments, and developers aggressively giving incentives for sales agents to sell the left-over new units, and developers giving aggressive cash backs to buyers. In this sense, the AI failed to understand the dynamics that's happening, failed to understand the pricing dynamics and what's happening on the ground, simply because these information IS NOT available in the internet. The AI generated blog doesn't value add to the information. At the time this AI generated the blog (jan 2023), the Melbourne property market is going through a decline, after months of interest rates hikes. Implications for the Buyers Agents using the AI In its current state, if a buyer's agent were to operate without a good understanding of what's happening on the ground, they will be making the wrong recommendations, and ultimately, their clients will be the one suffering. Would you be buying an apartment, because the AI has mentioned it and indirectly recommended it? This is an issue with buyers agents or buyers advocates, buying in states and cities which they are unfamiliar with. Our director and founder, Rayson, holds a PhD in Big Data and has over 30+ years experience in data analytics, data mining and big data, and almost 10 years as buyer's advocates. Here are his views of data and information. Data don't lie. It is true. However, there are problems with this statement: Data is lagging. Data only reflects what HAD happened. It does not necessarily predict the future. How the data is interpreted will lead to what information is derived from the data. Data cannot be interpreted in a stand alone manner. To derive accurate and meaningful information from the data, you will need to overlay the data with what's happening on the ground. And this, unfortunately relies on the skills and experience of the interpreter. Now, the next problem... the notion that "Data Don't Lie" has been abused by the interpreter or sales agents, to CONvince buyers. Thus... you need to be wary of where you get the data and information from and who is presenting them. In some languages such as Hokkien, Artificial Intelligence (AI) is loosely translated into Keh Kiang, which means being a smart ass. And unfortunately in its current state, it is. Let us know what you think of the AI's view of the Melbourne Real Estate Market.

Buying your home can be an exciting phase in your life. It can also be very daunting, especially if it is going to be your first home. Buying a home is no longer as simple as looking through the listings, attending the open for inspections, and making an offer for the property. It is full of complexities. It is possibly the single largest commitment (or liability, if you get it wrong) that you make in your life. In listening to many of our home buying clients, many home buyers are not properly prepared to ensure they do not end up buying a lemon or a dud property. And it is usually not the home buyers fault for being ill prepared. The whole real estate buying process is stacked against the typical buyer. In this article, we have compiled the top 10 common mistakes of a home buyer. We will also give you some facts which you have to know, and some buying tips on how you can avoid them. As most people do not buy more than 3 properties in their lifetime, these mistakes are applicable to both first home buyers and home buyers as well. 1. Not Doing Due Diligence Due diligence? What's that? Home buyers (especially in Victoria) would have heard of the term called "due diligence". But what exactly is this "due diligence" thingy? What should it include? How should you do it? As you would expect, due diligence is complex, and, it is unique to each buyer. It is different for different buyers. It is a topic on its own, which we will cover in the coming weeks. Essentially, just like any thing you buy, it is all about ensuring the property is fit for purpose. Fit for YOUR PURPOSE, not what the real estate vendor agent tells you. Check-in into our blogs in coming weeks for tips on how to do this. 2. Not Doing Enough Property Research and Preparation Most buyers are attracted by the staged photos in real estate websites and glossy brochures. But do you know what isn't mentioned in these sales materials? Do you know what the location is really like? What is around the property? What is the crime rates? Where are the public transport and schools? Will the property be acquired for road expansion or any public works? No two houses are the same, even if they look the same and are right next to each other. Throughout our 20+ years of property buying experience, we've seen countless instances where one property is affected by issues such as flood, contaminated soil, poor quality soil, while the property next door isn't. Do make sure you include these checks in your research, if you are concerned with them. 3. Not Knowing Your Budget, and Not Sticking to Your Budget What is your budget? How much deposit do you have for the purchase? How much will a bank or lender lend you? Will any lender even lend you? How much can you spend on the property? How much are you prepared to pay for the property? How much is the property really worth? Have you factored in other necessary expenses? What is your buffer? We've come across many home buyers who do not have a good idea of what expenses they have to budget for, in a property purchase. It is common to see home buyers start their house search without any idea of their serviceability. Serviceability is how much a bank or lender will lend you. Everyone is different, and your serviceability depends on your income, expenses, assets and liabilities. A good mortgage broker will give you a good idea of what you can borrow, and organise for a lender to pre-approve your lending. When you know your serviceability, you will have an idea of what types of property you should be looking for. But, do you have a good idea of what the property is worth? Many have no idea if the price in the listing is fair, underquoted, or in some cases, over-estimated. This is where it gets complex. One thing which you need to understand, is that, it is the real estate selling agent's job to hype up demand and interest for the property, in order to sell the property at the highest possible price. Their commission is, afterall, pegged to the sold price of the property. The higher they can sell the property for, the higher their commission is. So, if you are easily influenced by the market hype (#5 below), you will more likely than not, believe the selling agents, and you will usually be led into an "invisible, closed auction" over the phone, between 'another interested buyer, after you put in your offer'. Most buyers will end up paying top dollar for the property. Buyers without the right property market insight and advice will often over pay for the property, and some may find themselves unable to service the mortgage in the long run. So, instead of enjoying the new home which they had fought so hard for, they were struggling to afford it. 4. Not Knowing the Full Cost of Buying a House What other expenses do you need to be aware of? Stamp duties, conveyancing fees, buyer's agent fees (if you're using a buyer's advocate to help with your purchase), building and pest inspection fees, mortgage related costs, moving costs, setting up cost, repair or renovation costs, etc. Every property is different, and the individual buyer's needs and wants often dictate what expenses are required. As a guide, these expenses can cost between 5-15% of the property price. The buyer's advocates at Concierge Buyers Advocates can provide you with an idea of costs, if you need one, Make sure you include the relevant ones in your budget and due diligence studies. 5. Being Easily Influenced by the Market In times like these where the media is hyping up the Fear Of Missing Out (FOMO) mentality of property buyers, are you getting frustrated when you keep missing out on properties you like? Were you scared into not buying a property in 2020, because news and 'experts' were predicting 40-60% falls in house prices due to the Coronavirus pandemic? If you do, like most people, you are easily affected by market and media hype and scare campaigns. Read any economics textbooks, and you will know, prices of anything (properties included) are affected by supply and demand. But do you know what cause these supply and demand shifts? Do you know, in the age of internet, supply and demand can be easily influenced by media reports and the fake news on social media? And did you know, social media such as Facebook, WhatsApp, Instagram, etc, are the biggest disseminator of fake news? - Forbes How do you differentiate facts from fakes? How do you know if a fake news will eventually affect property prices (positively or negatively). Unless you are on the ground and in touch with the happenings in the real estate industry, like a true independent buyer's advocate, you would not know, and would not be able to predict when and how the property market will turn. News from official news outlets are reliable, however, reliable news only report facts. ie, they only report things after they had happened. This means, if you are waiting to read about the next property hotspots from news media, it has already happened. It is already too late. Take for example, in recent weeks, you would have read about properties in regional areas growing by up to 20%. Most people will now start searching for regional properties AFTER they read the news, but it is already too late. Will the regional areas keep rising? Where is the demand and economy to support the continued growth? As truly independent buyer's agents, we buy all around Victoria, regional areas included. We had seen increased demand in regional areas from 2019, prior to the pandemic. So, back in 2019, we forecasted the growth in regional properties. No one believed our predictions. The so-called 'experts' all proclaimed regional properties will NEVER grow more than CPI. But we had bought 12 regional properties from late 2019 to 2020 for our clients. Every single one of them have grown at least 20% in value. One performed beyond our expectation, and had actually grown a massive 55%. This is the example. Buyers who are just preparing to buy into regional areas after reading recent media, will be disappointed. They have missed the boat. Most regional areas have peaked. It is not going to grow too much from here, for the foreseeable future. 6. Not Understanding the Contract of Sales and What you Can or Cannot do A contract of sale is often over 100 pages long. It contains an set of important information which every property buyer should know, as it will affect your purchase decision. But do you ever read everything and understood everything? Do you know what the implications of these legal documents are? How will they affect you and what you intend to do with the property? Do you know what to look for? Buyers Advocates like us read an average of 3 to 5 contract of sales every week. We've seen contracts so convoluted that it rewrites almost every clause of the standard contract. Unless you are in the property or real estate industry, over 80% of the buyers do not understand how they or their decision to purchase can be affected by information contained in these contracts of sales. It is always good to spend a few hundred dollars to have a good lawyer review the contract before you make your decision. Having said that, not all lawyers are the same. A good property lawyer will try to understand what you intend to do with the property, and review the contract with your intent in mind. His/her feedback will be tailored to your needs. 7. Fed-up? Don't buy. So, you've been searching for months, attended hundreds of disappointing open for inspections, and failed to secure your dream home again and again... The selling agents are misleading you, you've been tricked into a good property that seems cheap, but were out-bidded by someone else who had a fatter budget. You're disappointed. You're disheartened. You wanted to give up. You are fed up! At this stage, almost all home buyers tend to commit their biggest sin. They put 'all-in' to buy the next property that come along. This can usually end up as one of their biggest mistake, but they can justify it with their "frustration". It is a mistake that can bite them for years to come. Instead of buying when you're frustrated, rest. Take some time off. If you have been missing on good properties, you are probably looking at the wrong place or have the wrong expectations. Take some time off, do a post-mortem study of your failures, review your criteria, and tweak them to suit the market. Remember, in a hot market, market conditions change every month. Prices would have moved. There could be more (or less) stock available in the market. There could be new regulatory changes, which can affect property prices. It is also probably time to consider engaging a buyer's advocate to help speed up your purchase. In a hot market, each month of delay can mean the property prices would have increased by another 2-5%. Good Buyer's Advocates who knows the market well, will help with your review. They will look at what you want, what you had been looking for, and work with you to tweak your expectations, and help you find your home. They are realistic with their expectations and will also search in places where most people would never have looked at. They have the connections into the genuine off-market properties, to help improve your chances of buying the right property. They do charge a fee of between 2-3% though, but, hey... remember, every month you save in your acquisition is saving you between 2-5% in a hot market. The faster you buy, the more you save. It's a no brainer. If you can just buy your home 1 month faster, you would have recovered the cost of the Buyer's Agent fees. 8. Not organising a Professional Inspection Most buyers are not aware of what you need to do during an open for inspection. Many believed the inspection is just for you to have a look and appreciate the property. They are partly correct. It is to the vendor agent's benefit that you visit and appreciate the property. But you should really look pass the pretty furnitures, beautifully staged beds, dining sets, etc. Furnitures are usually not included in the purchase, in case you're wondering. Picture yourself in the bare house. Do you know what you should be looking for? Do you know what you need in the house? Unless you have been inspecting properties day in and day out, most buyers are there to appreciate the staged presentation during the inspection. They are impressed with how well and glamorous the property is presented. Do you know what's lurking under the carpet? What's in the roof? Do you know what is really underneath the perfectly painted walls? How do you tell if there is an issue with the property in the short 10 mins inspection? Always have the property professionally inspected. And yes, inspections are also recommended for brand new buildings. You'll be surprised how many corners are cut to complete the build. We've seen brand new homes with over 30 pages of defects. At Concierge Buyers Advocates, we are trained builders, and on average we inspect between 50-80 properties a month, and read hundreds of building inspection reports a year. We know what to look for, and we should be looking, during the 10 minutes inspection. At the end of each open for inspection, our experienced buyer's advocate, will usually have a good idea of the condition of the building, and whether the building is worth presenting to our clients. 9. Not Understanding the Real Estate Selling Agent's Role Successful real estate agents are usually the friendliest agent who always seem to understand what you want. But do they really care what you want? Or are they just trying to convince you that you should want the property? Remember, their job is to sell the property. Their commissions are directly proportional to how much they can sell the house for. The more you pay for it, they bigger their commission is. Most home buyers do not realise the selling agents are working for the VENDOR. They work for the SELLER, not you. Unless you have entered into an exclusive Buyer's Agent Agreement with the agent, all agents are working for the sellers. They are legally required to protect the interest of their client, the Mr/Mrs Seller. Smart buyers have started to realise this, and, they have started engaging buyer's agents under exclusive agreements, to level the playing field, and to ensure they have an agent who understands the game, and who is protecting their buying interest. 10. Doing it Yourself (DIY) You've realised that the sellers have agents to protect them in the sales transaction. And you might still decide to save the small 2-3% fee, and chose to rely on information and 'experts' in the faceless world of internet, for buying advice. While some advice are relevant to you, over 98% of the advice are generic. You'll need to know what's fact, what's fake, and how the advice is relevant to your situation. And, if anything goes wrong, will they have your back? No one from these free sources are obliged to help you get out of trouble. We've many clients who came to us after they received the wrong advice from these free resources. One bought a land with 5 different overlays and issues. He would have bought a $250k lemon, if he had contacted us 2 days later. So, be wary of such free advice. Let's look at this analogy. Buying a house is probably your biggest commitment. It is as significant as fronting up to a judge in court. Will you attend court without a solicitor on your side? Will you choose to represent yourself, or do you prefer to save a few thousand dollars and have your faith and trust in the experts' advice sourced from the internet and social media? The 2021-2022 Property Market 2021-2022 is going to be another interesting year. The 40-60% property price crash of 2020 did not eventuate. No one expected the property market not to collapse. But because we are on the ground, and in sync with the property market, we did. Our predictions back in July 2020 believed the prices will be stable, and could even rise by end of 2020. It did. What's going to happen in 2021-2022? We're expecting the price boom to continue. In most areas, prices will easily grow 10%, with some areas growing by over 20%. But there is a catch. Not all areas will grow at the same rate. Not all types of properties will grow at the same rate. Some will even continue to consolidate. Do you know where to buy, what to buy? Where should your avoid and what should your avoid? If you are looking to buy you next home, here is how we can help: Tailored Advice - We find out what you want, your budget, and tailor our advice to your needs and wants. We will help ensure you buy the right property, at the right price. Buy with confidence and buy with the right property insight, based on facts and data. No more wasted weekends, no more guesswork, no more over-paying for your home. Buyer's Agency working FOR YOU - As Melbourne's fastest growing buyer's agency, we've been involved in over $25million of property purchase in 2020 alone! Yes, while everyone is predicting a property glut, and NOT buying and waiting to grab a good bargain, our insight understanding and accurate forecast of the property market had given us the confidence to help our buying clients buy over $25million worth of properties in 2020. Now, see who had really grabbed a bargain? Low Fees - We believe in helping our clients secure good properties and stop our clients spending too much and wasting too much time on endless house search. We believe in reducing our operating costs, and we believe in returning these savings to our clients, by way of low fees. As such, we have one of the lowest buyer's agent fees in Melbourne. Found a lower fee? Ask about our low fees guarantee. Have a chat with us, let us discuss your property purchase journey and explore how we can work together on your purchase.

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? In the Property Market What is a Buyers Market? A property buyers market is when there are more properties being sold than there are property buyers. In a buyers market, there is generally more supply than buyers, and buyers has the upper hand in closing the deal. A buyers' market can also be called a: cooling market falling market consolidating market Some alarmistic journalist may even call this a bursting property market. In a buyer's market, price rise tend to be rare, and sellers are more realistic with their expectations. Some might even consider reducing the asking price, to entice buyers. Should you buy Properties in a Buyer's Market? Short answer: Yes. Buyers can buy in a cooling property market. And it is usually 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 for the right time, and that includes waiting for the prices to bottom. Historically, Melbourne property prices are growing at an average of 7% annually. Yes, that include the major downturns like 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 around 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. Buyers waiting for the bottom, have NEVER bought at the bottom. One other notable 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 Properties in a Buyer's 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 Properties should you buy in a Buyer's Market? Anything, really. Anything you need to set yourself up for success. As a buyer, you need to understand that the Melbourne property market is made up of multiple sub markets. While some markets are cooling, some are still hot and 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. You buy properties for only 2 purposes: Buy what meets your needs Buy what sets you up for success financially. Identify your needs, then find a property that fits your home buying or investment plan and strategy needs. Whichever you buy during in a buyer's market, is definitely going to be cheaper simply because there is less buyers competing against you. If you are unsure of what to buy, have a chat with us. Our strategists can help identify your needs, and if you choose to engage our services to help you find and buy that property, you will get an immediate discount. What should you watch out for in a Buyer's Market? 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. Buyers should buy apartments only for 1 need: Convenience. Apartments are usually located centrally, near major amenities. Good public transport, food outlets, grocery stores, etc. Unless you are buying a very exclusive high-end limited edition apartment or penthouse, most mass market apartments are money pit holes. You need to validate when someone says apartments are high yield, high growth. Information you need to receive from them include: What are the strata (body corporate or owners corporate) fees? What are the council rates? Who supplies the utilities (include gas, electricity, internet/nbn)? Are you free to choose your own utility supplier? Does it come with parking? Where can you guest park? What are the growth in the apartment block? What are the recent resale prices of the apartments in the apartment block? What can you unit be leased for (yes, even if you are buying, you need to know this)? The notion that apartments are high yield and high growth, can easily be verified when you get answers to the above questions. Include the numbers into your due diligence, and you will find the high strata fees, higher interest rates, high parking costs, high utilities costs will eat into the yield of the apartment, while growth are almost ZERO, if not negative. In most apartments, yields are no better than a house in the suburbs, while, suffering from poor growth, due to the consistent over-supply issue. For more information around you need to know when buying an apartment, read this. What types of Properties should you buy in a Buyer's 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 a Buyer's Market? 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. Do not time the market. Time in the market is what it needs for the right properties to grow. Where can you get help to buy in a Buyer's Market? 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.