Service & Fee Guide
There are 4 options available to employ our expertise and services:
Option 1) RealEstate4U Property Investment Clients
Since we pride ourselves to be Sydney’s First Independent Property Investors Agency our focus is on mentoring and coaching our clients to make any real estate investment both prosperous and successful.
Before we even start considering any property specific issues and discussing what and where to buy each client will be thoroughly assessed in regards to their suitability for property investment.
Each client will attend a number of consultations during this appraisal process to establish all relevant investment factors:
Consultation One will be conducted by RealEstate4U and covers:
The client’s current financial circumstances, assets, liabilities, debt levels, current investments and superannuation savings, medium and long term goals and the fundamentals of property investment including basic gearing options and corresponding taxation issues.
During this consultation we will show each client several sample calculations of how we evaluate properties fit for investment so that they can understand how the process will eventually apply to their own particular circumstances.
We will also mathematically demonstrate that our fees hardly make any difference in the long term holding costs of the property.
Through our market knowledge, property research and negotiation skills we not only substantially reduce property purchase prices and holding costs, if there are any at all, but also justify our consultation and search fees.
Consultation Two will be conducted by Mortgage One and covers:
Professional advice in regards to suitable finance structures, gearing against current equity or the raising of other forms of deposits, all other loan related issues and the preparation of necessary paperwork.
Consultation Three will be conducted either by the client’s referring accountant or one of our panel accountants and covers:
All taxation related topics and calculations, income distribution, ownership structures, risk management options and the potential set up of Self Managed Super Funds which can invest in direct property.
Consultation Four (optional) will be conducted either by the client’s referring financial planner or by one of our panel planners and covers:
Risk management and insurance requirements and potential adjustments or changes to current superannuation structures.
These meetings will eventually determine which kind of property and location will be suitable for the client’s investment objectives and all service providers will liaise to make their recommendations in this regard.
Subsequently, RealEstate4U will commence with the property search.
The search process includes a written Comparative Market Analysis (CMA) in regards to true market values for each property under consideration and a comprehensive Property Investment Analysis (PIA) to ensure that the holding costs of the investment property are well within the client’s financial means (negatively geared property) or are creating a positive cash flow.
To ensure that our property recommendations will not be influenced by any particular price level a flat fee of $9,900 incl. GST applies.
An initial retainer of $1,650 incl. GST is payable when signing the purchasing agreement.
This will kickstart the assessment process.
The balance of $8,250 incl. GST is due upon invoice at property settlement.
Option 2) Investment Property Purchase Assistance
Some clients have attended the due diligence process previously, have already established their long term investment strategies, often know which kind of properties to look for and feel comfortable to handle the purchase themselves.
They still wish to seek help with the evaluation and mathematical analysis of the properties they consider fit for investment and want to ensure that they buy at correct market values.
However, we will not accept responsibility for a client’s decision if they have not participated in our assessment services prior to their property purchase.
We will physically inspect their selected properties and look for positive and negative features and the properties’ investment suitability, like rental returns, depreciation figures etc.
We then provide the client with a written Comparative Market Analysis (CMA) in regards to true market values and a Property Investment Analysis (PIA) to ensure that the client’s property choice falls well within their budget.
The fee per property inspection, incl. CMA and PIA, within the Sydney Metropolitan Area is $660 incl. GST.
The fee per property inspection, incl. CMA and PIA, outside the Sydney Metropolitan Area within a radius of 200 km of the Sydney CBD is $990 incl. GST.
Any other property inspection, incl. CMA and PIA, further than 200 km from the Sydney CBD attracts a fee of $2,200 incl. GST.
These fees need to be credited to our bank account 5 days prior to the inspection day booking. This will allow us enough time to arrange inspection appointments, adjust our own diaries and make travel arrangements.
Option 3) Bidding at Auction
Some people have prepared themselves, or with the help of other service providers, and have identified a suitable property that is for sale by auction.
However, they might find the auction process too challenging and are looking for assistance in mastering the bidding war.
We will develop an auction strategy and establish the maximum purchase price with the client and will negotiate on behalf of the client should the property be passed in.
Our attendance fee within the Sydney Metropolitan Area is $660, incl.GST. You need to book and pay your appointment 5 working days prior to the auction day.
This allows us to adjust our diaries and conduct our research so that we are prepared for the day.
A further $550, incl. GST, apply if we successfully secure the property during the auction or in post auction negotiations, payable upon invoice once the client has signed their copy of the contract.
Option 4) Standard Property Purchase
Though we are Sydney’s First Independent Property Investors Agency we can help of course with purchasing your new residence.
This process is vastly different from property investment since the focus is entirely on property.
However, we can equally apply our market knowledge and tap into our relationships with local real estate agents and developers, especially to get our hands on silent listings or those sales that have not been marketed yet.
Once we have located properties that match your brief, we will invite you or your representative for inspection appointments.
We send you digital photographs and written appraisal reports (CMA) before we start negotiating or bidding at auction for the property you wish to purchase.
We have restricted this service to Sydney’s Eastern Suburbs, Lower North Shore and Inner West, since we are most familiar with these areas and we know the market well.
Our standard purchase fee covers one search area within two adjoining post codes.
As a general guideline, our success fee for a standard property purchase is 2.2%, incl. GST, of the purchase price.
However, the complexity of the client’s search criteria might vary this fee structure.
Alternatively, we are happy to negotiate a fixed fee after we have discussed your purchase brief.
An initial, non-refundable retainer of $2,200 incl. GST applies and is valid for a period of 6 months.
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