HOW MUCH CAN I SAVE BY USING A BUYERS AGENT?
Make a guess. How much it cost to search for a property? 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?
Let us look at the facts.
A research conducted by UBank concludes that it can take a person in VIC 7-12 months on their property search journey. That is up to 12 months of searching through houses to buy, 12 months of testing out untested home buyer tips, 12 months of lost rentals and, given that property prices are rising at around 6.8% annually [Corelogic] on average, you would have lost that 6.8% increase in equity, AND you would have paid 6.8% more for a similar property when you eventually found one in 12 month's.
Now let’s put the sums together. Considering the median Melbourne house price of $833,000 (2018), and a median rental of $420 per week. When it takes you 12 month to buy your own property, that’s $21,000 in missed rental yield, $56,000 in missed equity appreciation, and you’ll be paying $56,000 more for a similar property when you eventually buy one.
You would have wasted (or missed) over $133,000! And that does not take into account the 6.8% more stamp duties paid, hours and months of time spent researching, and searching, travelling, doing home inspections, blah blah blah.
In property investment, you would have made $133,000 less in that property.
What happens when you use a Buyer's Agent?
Depending on the complexities of a purchase, it usually takes an average of 2-3 months for a typical Melbourne buyer agent to find the property. Some of the best Melbourne buyer's agent may take as little as 1 month for a simple purchase.
Yes, it might cost you on average 2-2.5%, but 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% ahead in income!
When you consider the missed opportunity, engaging a professional Buyer’s Agent like us, is suddenly becoming 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.