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How one investor bought TWO for the price of ONE

By Simon Pressley

Promoted by Propertyology

Sydney property investor, Jarrod, has a couple of runs on the board when it comes to real estate.

Not only does he work as a property lawyer for institutional investors, he'd also bought a property in London previously as well as another one in Maroubra in Sydney and a potential development site in Newcastle.

But even with that background, he admits he didn't feel like he was an expert when it came time to invest again in 2017, drawing on the growth in Maroubra over the past five years.

He began following Propertyology and was soon impressed by their level of research as well as their nationwide buying strategy.

"I do think I know more about property than the average punter, but I am still time-poor, and to be honest it's money well spent to pay for expertise like that – I'm all about rich communication or enhancing your chances of getting a better performing investment property long-term," he says.

"I really liked their story around their research, that there's alignment with them. They personally invest in the same areas that they actually recommend to their clients, so there's an alignment there."

Two for one

Knowing that he wanted to invest again, Jarrod organised his finance at the start of 2017 and then found he didn't have the time to undertake the level of research that he's comfortable with.

"I think that being in a professional job with very limited time some weekends you're just going, 'Oh, I don't want to research property'," he says.

"We were going to buy in Sydney again, to be honest, and then I went, 'You know what, I think I'll just prefer to diversify and actually just get the peace of mind that my next decision is a good one'."

Jarrod knew that the Sydney market was past its peak and could see that growth was likely to be minimal over the short-to-medium-term.

He was in the fortunate position of having a $800,000 budget and that meant making a decision around buying one unit in his hometown or two affordable properties in locations where future capital growth was more assured.

"We could've bought another unit for $800,000 in Sydney or two $400,000 houses somewhere in growth markets, so we opted for the latter to be honest," he says.

"I met with the Propertyology team for lunch, and stepped through their process, and it was just all very sensible, factual and very diligent.”

"I thought, 'You know what guys? I'm happy tapping into your lifelong devotion of researching the Australian property market'."

After not doing much for the first part of 2017, Jarrod soon engaged the firm and by the end of June he had exchanged contracts on two properties in affordable locations with significant growth prospects.

The first one was a three-bedroom house in Hobart, which was secured for $390,000 and rented for $390 per week. Within less than year of settlement of that property, it’s already produced double-digit price growth and local rents have also exploded.

The second investment property was located in a growth corridor near a capital city that also has a number of major infrastructure projects under way.

Jarrod says the firm's negotiation skills showed that they valued every single client’s dollar.

"It's funny because the buyer went down $1,000, the vendor then went up $1,000…" he says."The comment I'd make on that point is they actually really valued every dollar being saved. There were four prices on this contract with each one struck out until they met at an amicable point."

Propertyology secured that property, a highset three-bedroom house, for $401,000.

A new way

Even though Jarrod has the development site in Newcastle on his radar, he says he's keen to keep growing his property investment portfolio.

And with a new understanding of adopting an affordable growth location strategy, he hopes to start buying again sooner rather than later.

"I like blends between investment properties and I'm very happy to always engage property professionals and pay for their expertise," he says.

"I'm very keen to use Propertyology again. I highly, highly recommend the team. They held my hand but,it was peace of mind as well.

"Their research was second-to-none. Even for me – I'dsay I'm a half well-informed property investor – I still couldn't execute without them in the timeframe I wanted to execute.

"I was looking for three months (by myself) and I had these doubts in my mind about was this a good place to invest? Whereasthey just fire with conviction – and that's what I needed".

Jarrod is one of hundreds of everyday Aussie investors that Propertyology’s multi-award-winning buyer’s agency team has helped to invest in locations all over Australia. If future financial independence is important to you and you see value in engaging a professional to do it well, telephone us on 1300 65 40 70 [Mon-Fri] or email.

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  ["id"]=>
  string(5) "18177"
  ["title"]=>
  string(51) "Boost for investors as app sets up off-site bidding"
  ["alias"]=>
  string(55) "boost-for-investors-as-new-app-sets-up-off-site-bidding"
  ["introtext"]=>
  string(144) "

Property investors are now able to identify and bid on auctions remotely using a new live-streaming functionality launched by Gavl.

" ["fulltext"]=> string(1540) "

Called “Request an Auction”, the new functionality enables users to watch and bid on any Sydney or Melbourne auction remotely.

Through Gavl, prospective buyers are now able to register to bid on their preferred auction. The platform will obtain permission from the listing agent and confirm within 48 hours.

Vendors can also request to have their auctions broadcast to a larger buyer audience.

Co-founder Joel Smith said that auctions streamed on Gavl attract 47 per cent more viewers than traditional ones.

He said that Request an Auction will be valuable for remote buyers.

“Buyers are able to have Gavl attend any auction they nominate, so they will never have to miss out on an opportunity due to logistical complications in physically attending the auction.

“Vendors, too, have the opportunity to directly book an auction with us, so they can open up their event to buyers all around the world. With more potential buyers, they’re giving their property the chance to receive more bids and maximise their sales result.”

Mr Smith said that prior to the Request an Auction app, buyers were limited to what they could achieve through the Gavl technology.

Gavl is a live-streaming and bidding platform for real estate auctions.

Mr Smith said that it has streamed more than 6,000 auctions, which have achieved 3.5 million views from 50 countries.

Gavl’s Request an Auction function is currently being offered in Melbourne and Sydney only.

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Boost for investors as app sets up off-site bidding
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  string(5) "18171"
  ["title"]=>
  string(68) "How a move to Hong Kong impacted Julia’s Australian property goals"
  ["alias"]=>
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  ["introtext"]=>
  string(278) "

Having to split her time between Hong Kong and her original base of Sydney has not slowed Julia Tita’s goal of building a high-performance Australian property portfolio. Instead the resulting alterations to her strategy have positively impacted her investing success.

" ["fulltext"]=> string(3579) "

Having recently purchased her 6th property, Julia joins host Tim Neary to discuss her journey, share her ups and downs over the years, and reveal her thoughts on why some properties are better than others.

Julia also explains why she no longer makes a move without the help of a buyer’s agent, why working with a strong team of specialists is extremely important and discloses her long-term property ambitions.

If you like this episode, show your support by rating us or leaving a review on iTunes (The Smart Property Investment Show) and by following Smart Property Investment on social media: FacebookTwitter and LinkedIn.

If you have any questions about what you heard today, any topics of interest you have in mind, or if you’d like to lend your voice to the show, email [email protected] for more insights!

RELATED AREAS OF INTEREST:

Why is Australian property so unaffordable?
Brisbane infrastructure attracts international interest
Going global
Australia desirable to foreign investors

AREAS MENTIONED:

Eagleby
Charters Towers
Townsville
Brisbane
Paddington
Sydney
Orange
Melbourne 
Glen Iris
Bondi

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How a move to Hong Kong impacted Julia’s Australian property goals
object(stdClass)#1195 (52) {
  ["id"]=>
  string(5) "18159"
  ["title"]=>
  string(88) "‘Common’ referrer practice of being paid on both sides of the fence coming to an end"
  ["alias"]=>
  string(82) "common-referrer-practice-of-being-paid-on-both-sides-of-the-fence-coming-to-an-end"
  ["introtext"]=>
  string(246) "

The practice of property investment firms sharing undisclosed kickbacks among the supply chain involved in development sales will be outlawed in NSW on 1 July this year under the Real Estate Reform being handed down by regulators in NSW.

" ["fulltext"]=> string(2238) "

Property commentator and valuer, Suburbanite’s Anna Porter, said the reform will address conflicts of interest.

She said they arise when a mortgage broker, accountant or financial planner receives part of the commission from the property firm, who receive their fees from the developer or seller.

“This puts the broker into a position by which they are being paid on both sides of the fence,” she said.

“Until now this has been a grey area and there was nothing stopping this practice.” 

Ms Porter said this has been a common practice in the industry.

"Some well-known mortgage broking firms openly admit to receiving $5,000–$10,000 per referral in their pocket.”

She also said this process has been going on for decades.

"Property investment firms commonly pass some of their commission on to the mortgage broker, accountant or financial planner as a reward to them for passing on the referral. This means that many brokers or financial service providers are making significant amounts of money just to refer on to a property firm, often totalling hundreds of thousands of dollars a year," Anna Porter said.

Ms Porter said the Property, Stock and Business Agents Amendment (Property Industry Reform) Bill 2017 will be in force from July this year, and will prohibit this practice unless the broker or referring partner also holds a real estate industry license.

"Under the new laws, if the broker takes a referral fee from the property firm, they will have to be a licensed real estate agent and also hold a corporation’s license,” she said. 

“Subsequently, every transaction that they receive a referral fee from, they will be putting their license up against the transaction and taking full liability for the conduct, practices and outcome of that transaction, even if they have little to do with the transaction; they are a party to it financially and therefore take as much risk as everyone else in the transaction.”

Mr Porter said where a referrer holds a real estate license, and receives a part of the sale commission, they may find themselves in breach of the ethical requirements under the act.

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‘Common’ referrer practice of being paid on both sides of the fence coming to an end

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