Sydney Real Estate Buyers Agent

Asset returns

Fred Haggar — Fri, 27 Jan 2012 23:37:03 +0000

Asset returns for period ending 30 NOV 2011 before tax and fees

Asset class	Quarter	1 year	3 years	5 years	10 years
Direct property	2.2%	9.7%	1.3%	6.1%	9.5%
Overseas fixed income-hedged	1.3%	8.3%	7.5%	8.0%	7.7%
Diversified fixed income	1.3%	8.3%	7.5%	8.0%	7.7%
Emerging market	-5.9%	-17.4%	6.2%	-1.8%	7.3%
Australian small companies	-7.1%	-12.1%	15.0%	-3.6%	7.1%
Inflation linked bonds	3.8%	16.6%	8.4%	6.1%	6.9%
Australian shares-all funds	-3.0%	-6.3%	8.1%	-1.4%	6.6%
Australian fixed income-all funds	2.1%	10.5%	6.5%	7.2%	6.3%
Australian cash	1.2%	5.0%	4.4%	5.5%	5.4%
Global small companies	1.1%	-6.0%	4.3%	-4.9%	1.6%
Listed property-all funds	1.7%	2.2%	-0.5%	-13.6%	1.1%
Overseas shares-all funds	2.7%	-5.2%	-3.9%	-7.2%	-3.3%
Hedged overseas shares	0.8%	2.9%	13.0%	-0.7%
Global property	-2.9%	-7.4%

Sources
Mercer Investment Consulting
BRW 19 Jan 2012

At Property Search 4U, we are regularly asked questions such as:

• What do you think the capital growth rate will be if I buy in suburb A?
• Is the capital growth in suburb B better than suburb C?
• Is the capital growth of a house better than an apartment?
• Where should I invest?
• What should I invest in?
• When do I buy?

These and similar questions do not have a simple answer. Some of the factors to consider are:

• The rationale for buying property (the universal question: Why?).
• Timing of your purchase must be aligned with the objective.
• If borrowing, the ability to service the loan over the next 7-10 years.
• Demographics (current and projected).
• Infra-structure (public transport, schools, universities, shops, hospitals, entertainment, parks).
• State.
• City.
• Region within the city.
• Suburbs within the region.
• Streets within a suburb.
• Type of property.
• Property’s attributes and features.

Rejuvenation through Relocation

Fred Haggar — Tue, 25 Oct 2011 07:15:16 +0000

A business relocation is a major undertaking requiring a collaborative effort. It also presents a great opportunity to communicate positively to both external (clients) and internal (employees) stakeholders.

Project Leader
One person must be in charge. They must have:

enough time to devote to the relocation project;
the ability to be an efficient organiser of people and processes;
experience of setting and working within budgets;
clear communication skills.

Tenants Representative
A competent and knowledgeable agent to find the most suitable property, negotiate the best leasing terms and conditions, submit an effective “Heads of Agreement” and navigate between leasing agents, solicitors, councils and office fit-outs.

Solicitor
Ideally is a real estate specialist to negotiate the details of the lease document to minimise exposure to potential liabilities and advise on the implications of all terms and conditions.

Fit-out contractor
The design and delivery of an efficient office layout – for today as well as tomorrow’s business requirements.

Removalist
A professional company to handle a quick and efficient relocation, minimising both interruption and downtime.

IT and Communication
Engagement of a service provider unless the business has an in-house expertise is important to ensure throughout the relocation process, that the business will be able to fulfill the continuity needs of external (clients) and internal (employees) stakeholders.

Human Resources
Change can be unsettling for some people and this can certainly be the case with a business relocation. Employees’ expectations and concerns need to be managed through regular communicative updates.

Rejuvenation
The relocation also can offer the opportunity to:

develop a document retention policy (in compliance with current statutory regulations) to include off-site storage service thus reducing the current requirement for office space – HUGE savings EVERY year;
clear out old as well as unwanted files and documents, securely;
purge all storage areas of unneeded items prior to moving;
modernise and update office equipment;
review existing suppliers;
maximise the brand and image of the business.

Project
Commencement should be at least 9 months prior to lease expiration. It is vital to allow enough lead-time to increase the amount of leverage between the various options, resulting in substantial overall savings. It is recognised that after labour cost, occupancy is the second biggest.
Regular meetings to be attended by the relocation team EVERY time.

Existing premises:

date of hand-back;
contractual make-good obligations;
list and communicate to all parties associated with the business e.g. staff, customers, suppliers, government (federal, state & council), associations, white/yellow pages, Australia Post, banks, accountants, lawyers, website, stationery and much more.

Review – Commercial Lease

Fred Haggar — Tue, 25 Oct 2011 01:36:33 +0000

Some of the preparatory steps a lessee should consider before renewing a lease:-

1. Establish a property strategy with a reasonable time to implement it. Do not wait until the last 3 or 4 months before the lease expires to consider the affects of your strategy.

2. Assess the impending tangible and intangible costs to relocate. Tangible costs would include making good current premises, office fit-out, IT structuring, staff dislocation plus a myriad of other costs. Intangible cost in the main would be the impact on customers.

3. Ask yourself some hard questions including:

Do I need the space I am currently leasing?
Should it be more?
Can it be less?
Can I reduce space used to store documents by outsourcing to an off-site document storage facility?

4. Do not depend on your existing lease option (if you still have one).

5. Establish a fair market rental for your premises. Research, research and research the market’s factors:

Location.
The Dollars per m2.
The type of outgoings (statutory and operating) and their cost per m2.
Total size of the premises.
Productivity per m2.
Zoning.
Use of premises.
Condition.
Style.
Transport.

Now you are in a position to renegotiate your lease knowing with confidence what your options are.

Buying property in NSW

Fred Haggar — Mon, 29 Aug 2011 05:05:16 +0000

The standard “special conditions” in a NSW real estate contract of sale unlike the rest of Australia are clearly biased towards the vendor . The purchaser in fact is in a “no man land” situation and that is why I feel real estate buyers in NSW are penalised.

Example:

The purchaser requiring settlement on a specific date and includes it as a condition in their offer.

The vendor agrees to the condition in writing.

The exchange proceeds with a 66W Certificate (waiving the purchaser’s entitlement to a cooling-off period).

One business day before the agreed settlement date, the vendor writes to the purchaser stating they cannot settle as agreed.

Other than serving a “14 day notice to complete” on the vendor, there is not much else the purchaser could do. Pulling out of the contract would cost the purchaser their deposit and possibly more if the vendor elects to pursue their expenses and costs including chargeable interest per each day of the dispute.

What penalties/costs would be incurred by the vendor if they rescind on the contract? Nothing!

Months of searching for the right property are wasted. The purchaser now have to start all over again, not to mention having to re-apply for finance, and Thousands of Dollars of expenses incurred in the process: legal, pest, building and strata inspections and other due-diligence reports.

There might be some rationale behind this one-sided approach to penalties etc… being if settlement is delayed through the fault of a purchaser then the vendor is likely to incur additional interest on their existing home loan. The corollary to this is that a purchaser does not incur the same additional interest because their home loan has not been drawn down until the actual settlement.

This one-sided approach does not take into consideration the vendor might not have a home loan nor the possibility the purchaser is renting while seeking to find a new home.

What do I think is required to bring real estate laws in NSW to the 21st Century?

Treat the purchaser as equal to the vendor.

A long shot but in the meantime, if settlement date is absolutely critical to the purchaser’s needs, they:

Should insert a “special condition” in the contract requiring the vendor to pay the purchaser similar penalties that would have otherwise been paid by the purchaser if they do not settle as agreed;

Should insert a “special condition” in the contract whereby they have the option to rescind on the contract without any penalties and be refunded the full deposit should the vendor not settle as agreed and after having being served with a 14 day “notice to complete”.

Land tax

Fred Haggar — Fri, 05 Aug 2011 07:43:17 +0000

As a buyers agent engaged by investors to locate and buy suitable properties for them, we often ask the question “will land tax affect your decision to invest”?

While buyers budget their buying costs, interest payments, property management fees, council rates, water, strata levies and maintenance, there remains one other and sometimes ignored cost that investors do not budget for, namely the NSW land tax also referred to as investment property tax.

Australian land tax began back in 1910, when a land tax was introduced by the Commonwealth Government.

Times have changed, yet most Australian state governments are still collecting this tax despite the changed circumstances from its original intentions.

NSW investors need to be aware of the possible applicable land tax when buying property.

Land tax is calculated on the combined value of all taxable unimproved land you own, above the current threshold. This includes land owned jointly with another party.

Naturally, any purchaser of NSW real estate should be seeking advice from their accountant, legal advisor and/or financial planner or at least visit the office of state revenue site.

When considering ongoing property costs, land tax needs to be factored in and planned for, especially if the investor is planning to purchase more real estate in the future.

Relocating your business – Services

Fred Haggar — Fri, 05 Aug 2011 06:34:42 +0000

Some of the services you need when relocating your business:-

Relocation Consulting
Unless the business includes employees experienced in and able to dedicate 100% of their time to the relocation project, the business should consider outsourcing this project – a critical one to the ongoing success of the business.

A consultant will work with you to manage the complexity of the relocation and provide the expertise in technical services and support, necessary to implement the most effective relocation solution for your business.

The following key steps are the basis for planning a relocation:

Review facilities.
Pre-project planning.
Assemble project team.
Define scope of relocation.
Identify special requirements.
Establish master relocation schedule.
Hold regular coordination meetings.
Space planning.
Filing system analysis.
Communication & change management.
Coordinate technology integration.
Select commercial or specialty relocation companies.
Prepare relocation guides.
Staff workshops.
Supervise throughout physical relocation.
Oversee deficiencies and fine-tuning.
Asset management planning.
Assist with facility decommissioning.

Key Benefits

Specific expertise in relocation management.
Single point of contact for all project coordination.
Seamless project delivery.
Proven methodologies.
Professional staff with diverse skills.
Large and small project experience.

Physical Relocation Management
Management of all aspects of the relocation project is paramount to ensure a seamless transition to the new facility. Drawing on expertise and relocation methodologies, will enable you to coordinate all the relocation-related activities and maintain firm control over the project, ensuring the relocation is managed effectively and delivered on time and within budget.

First-Time Strata Owner

Fred Haggar — Fri, 05 Aug 2011 05:59:08 +0000

Are you a new strata owner? Well here are some terms to get you started:-

What is the Owners’ Corporation?
The corporation is comprised of all the owners in a strata title scheme.

What is the executive committee?
This is a number of owners (or their representatives) who are elected at annual general meetings of the owners corporation to act on behalf of all the owners.

What are the responsibilities of the executive committee?
The committee oversees the daily maintenance, action items approved at annual meetings, liaise with the strata manager regarding the operation of the owners corporation, and where applicable, deal with problems which arise during the year in which they are elected.

How is the amount of levies determined?
Levies are determined by the owners corporation at the Annual General Meeting.

Who issues and collects the payment of the levies notices?
The appointed strata manager, usually quarterly in advance.

What is the sinking fund?
It is a portion of the levies retained to finance major expensive repairs. It is recommended there are sufficient funds to cover standard and unexpected capital expenditure items.

What happens to payment of the levies invoice?
All levy monies are deposited in the scheme’s individual trust account. The owners corporation determine the allocation ratios into:-

Administration Fund to pay for but not limited to regular grounds maintenance, common area facilities, annual Insurance premium of the building, strata manager fees, postage and stationery, minor building repairs, legal fees, pest control (of common grounds), electricity and water usage for common areas, caretaker/on-site Manager (if applicable);

Sinking Fund to pay for but not limited to repainting, roofing replacement, guttering replacement, driveway repairs, fence installation, major plumbing repairs, resurface pool (if applicable), pool/shade cloth installation (if applicable), capital expenditure items such as lift upgrade.

A Buyers Agent and A Selling Agent…Opponents?

Fred Haggar — Fri, 05 Aug 2011 05:18:38 +0000

With more and more real estate buyers using the services of a buyers agent, I often get asked does a selling agent feel about a buyers agent?. Other questions that come up:-

How do selling agents perceive your service?
Do they see you as the enemy?
Will they deal with you?

To the contrary, the professional selling agents actually value our service because they know we are an independent agent and like them we work exclusively for our clients (the buyers) and they also know our clients are qualified buyers and have:-

A concise budget – relevant to their needs.
Defined their property’s specifications – the “Musts” and the “Would like to”.
Short-listed up to 5 suburbs where they want to buy.
Realistic expectations.
A clear understanding of the market conditions and the price range of their planned purchase.
A time frame to buy i.e. made the decision to buy now.
Arranged finance.
Appointed a legal representative.
The ability to organise through their buyers agents all the required due-diligence services.

In a typical situation, hurdles a buyer might encounter which without the services and the support of a buyer’s agent (and which affect the selling agent) include but are not limited to: -

The buyer’s anguish caused by the buyer’s lack of knowledge of the fair market price.
The buyer being told by family and friends “you are paying too much”.
The buyer has to arrange finance.
The buyer gets cold feet due to misinterpreting an inspection or strata report.

When transacting with buyers agents, the selling agents know their written offer is real and once accepted the deal will go through expeditiously to the satisfaction of all parties involved, with less likelihood of it falling over because of the buyer’s agent comprehensive market research, objectivity and emotional detachment.

After all, both types of agents are committed to their respective clients to deliver the optimum result in the shortest period of time, hence they know it is a win-win outcome.

Relocating your business – Objectives

Fred Haggar — Sun, 24 Jul 2011 04:37:23 +0000

Property Search 4U recommends the following guidelines in consideration when relocating your business.

Maximisation of Productivity of the organisation and staff – seamless operations.
Minimising Risk of damage, lost time, product & equipment – assured outcome.
Maximising Value by recognising the commercial consequences of downtime.

These objectives are best achieved when integrating:

People issues and the business’ operations.
Specialist product lines, equipment & handling methodologies.
Information technology & communications.
Physical relocation.

Requirements
Identify stakeholders, establish the relocation budget and scope of works, to ensure the objectives are met.

Staff
Seek input from staff on all aspects of the relocation process at both origin and destination sites.

Operations
Identify and account for all operational issues impacted.

IT
Identify all existing systems and data to assist in relocation and stock validation.

Equipment
Identify the optimum handling and transport requirements for your business to ensure that controlled and secure conditions are maintained (including statutory requirements).

Physical Relocation
Manage the relocation to ensure all products/equipment are delivered without loss or damage.

Project Plan
Develop, maintain and manage all aspects of the relocation exercise to achieve the agreed project plan.

Budget
Create the budget for the relocation and complete the relocation exercise within the agreed budget.

Buying property in Sydney

Fred Haggar — Mon, 28 Mar 2011 10:43:56 +0000

Why are property prices important? Because whether you want to build a real estate portfolio or buy a home, acquiring a property is an important step to take – it is a long-term decision.

Defining your long term objectives and keeping up-to-date with the real estate market and its elements, are as equally important as choosing the location, establishing a budget and arranging your finance.

So how do you avoid the traps and make sure you get what you want within your budget?

Research – Research – Research

You need to become well educated. The more information you gather, the better your chances are of making the right decision. It pays to be really clear about your property objective.

Put on your jogging shoes and start inspecting between 15 to 20 properties to generate 1 “suitable” property. The right decision should be based on a short-list of around 3 “suitable” properties – any one of them good enough to buy.

Amongst many elements of your research, one is to analyse the sale history of comparable properties, ones that were withdrawn from the market, ones that were passed in at auction and of course properties that were sold privately.

Once you have decided that buying in your chosen suburb is within your price range, it’s time to get serious about finding the specific property you want. Drawing up a wish-list in order of priority is a must. Writing down your “must haves” and “wants” is the discipline you need to start thinking about their importance in relation to your budget.

As you develop the list you realise what you may be prepared to compromise on and this will help prevent you from getting too emotional about a property at inspection time. It will help you realise what features can be discarded in a property and, more importantly what features are not.

Perhaps the hardest thing most buyers realise is that they will probably have to water down their expectations that perfect property at that perfect price isn’t always easy to find. You see, buying property is a matrix of:

Price.
Location.
Specifications.

Buying property is not shopping. You need to be:

Disciplined.
Persistent.
Consistent.
Objective enough to walk away from a property and start all over again.