Interstate property buyers in Perth-Success story Buyers agents
Buyer’s agents services for interstate property buyers
Good ‘day guys, It’s Simon and Heath from You&Me Personalised Property Services.
We thought we would jump out of the office environment and brave the terrible conditions that we are faced with here in Perth in the middle of winter. We wanted to get out and about and talk to you about some of the recent wins we’ve had with our clients.
Buy multiple properties from overseas (buyers were overseas)
Interstate property buyers: challenges and constraints
Heath, you’ve had an interesting one just recently. The client’s brief was very challenging. It involved time constraints. It involved multiple purchases. Why don’t you tell us a little bit more about that and how you were able to overcome everything and ultimately get the win for our clients?
Block or established house?
Yeah, absolutely. Hi, guys. So we had a buyer client, Anirudh and Priya, and we the brief basically went they wanted a two-part series. Did we get a development block or did we get a simple established house? And it comes down to: we were looking at some development blocks. We found a couple there, but it was in some lower socioeconomic areas.
The reason for that is because we had a restraint on the budget. So the client’s figure was $450,000. For each purchase.
There were two purchases. The client’s brief was $450,000. The initial brief was, should we get a development block?
We stick to the brief
After some quick research on our behalf, we gave some properties and showed some properties, and it just didn’t fit their needs of wants.
Well, the brief was: they wanted to be able to get a development block where they could keep the existing home and subdivide the back. Now, based on the $450,000 we found in those properties, but they were like when they sold that the condition, I guess in the work that was required, it was different than what they had in their mind.
Present more options to the buyers
So then we had to revisit the brief and sort of present some different options for them.
And sort of what do you come up with from that?
So then what we tried to do, obviously we knew they wanted a two part, two properties.
North and South of the river in Perth
What we tried to do was split either North and South property just to just to diversify the holding really.
And when you’re talking about north and south, what areas?
North and south of the river in Perth. Yeah. So what we ended up doing, we provided some options North, we provided some options South.
Buying properties fast
Bank and time constraints
The other restraint we had was the pre-approval was running out on the bank. The other one, they were going overseas! The next one, we had three weeks to find these properties: two properties in three weeks. Clients were overseas and pre-approval is running out.
Correct. So no problem!
Probably the odds are against us. But, we rolled up our sleeves, a bit of persistence and we got there in the end.
What we ended up doing was finding 586 square meter block of land in Port Kennedy with a four-by-two house on top. Internal space of about 194 square meters.
How much was that purchase price yet?
The purchase price we ended up getting for $450,000.
So back on where it needed to be.
The power of negotiation with buyers agents
Getting the right property at the right price
So what we were doing is we were actually going through, we looked at a couple, we were juggling the idea that we go $440,000. Do we do this? Do we do that? We actually missed out on one by a couple of thousand dollars. We went to the client said: “listen, guys, this is where the property sits. It has to be $450,000. So we’re going to miss out and we’re going to continue to miss out for under $10,000.
So what you’re saying there is, there were multiple offers on the property, correct? We felt that most of those offers, based on your experience and leverage and negotiations, I guess you’d had with the agent, that there were probably two other offers sitting around for $440,000-$445,000 somewhere around there. And you felt that if we went to $450,000, it was going to be enough to secure the property for the clients and get them in without paying too much.
We negotiate for the buyers
I went to the agent, I’ve dealt with him a couple of times before and he told me openly that they’d already knocked back a couple of offers in the $440,000’s. Yeah, he didn’t tell me where, but that again we talk leverage and their leverage was that we can’t be in the 440’s.
So we put in a $450,000.
And that was good enough to get the deal. And then what about the rent return on that one.
So we got a rent return. We go to our property manager to do up an external rent estimation.
And that was $520 to $550. Yeah. So we’ve just paid a $450,000 house getting a rent return of between $520 and $550, which, without the math, off the top of my head is around about the 6% mark.
And again, look for everyone watching, you know, Perth is the highest yielding major capital city in Australia right now. The average is around 4.4%. We’re consistently getting our clients between five and a half and 6% and we’re able to do that based on our networks and our time in the game: 40 years combined, practical experience.
The experience as a property buyer with You&Me Personalised Property Services
Buying Perth properties from overseas
So how do the clients feel like that? Because the other element was they were overseas.
So obviously nerve-wracking. On the phone, on the blower every single day. And we were up around about 10:00pm most nights having a chat to them from overseas just to make sure the deal was running smoothly and they were happy with the whole process. Yep.
Availability with the clients
So kept up to date, you’re able to take away the stress from them? Absolutely. Because they were able to talk to you late at night. Yeah. Guys, just one of the benefits of being able to deal with both, if not one of or both of the co-founders of our business. We’re always there for our clients. We only work with 50 clients a year and we try to work around them to be able to give them the support that they need.
And that’s exactly what happened there.
Find a property closer to the city
So I mean, we’re going to the second property, the first properties, 40, 45 minutes out of Perth. We quickly found this suburb, a coastal suburb. Yep, absolutely. And we quickly found that the diversity that we wanted, they wanted to be closer to the city. Yet for their own reasons, you know, we’re not here to argue again, another coastal suburb and again, about 20 minutes closer to the city.
So you’re about 15 to 20 kilometres out of the city.
And then obviously, by being closer to the city, there were some, I guess, things that they had to let go of because Port Kelly would have been a newer home. Bigger home. But getting closer to the city, though, probably missing out on, on something to that same spec.
The specs aren’t going to be as good. You’re halfway again to the city.
The right property, at the right price
So we ended up getting a three bedroom by one bathroom. Very neat and tidy. Yeah. But what we did pick up on is we got 700 square meters of land instead of the 500.
So they were land banking, they’re getting a three by one. There are things that they can add value to that home immediately if they choose, but also it could rent out. Well, I remember one of the concerns being we were concerned about what their rent return was going to be by being so much closer to the city and getting that much land, which you had to win on that as well.
Which was alleviated again by the external rent that we got. Our external rent estimation, yeah, we got a $475 to a $500 rent return. So we’re talking around the 5% mark. It’s not the six and you’re never going to get 6% all the time, but where it’s at five percent. But again at 5%, 0.6% above what the average is here in Perth.
Rental yield over Perth average
Yeah, I mean 4.4% rental yield average in Perth. And for those at home that don’t know what rental yield is.
Rental yield is the return of investment based on your purchase price. So if you’re purchasing a property for $500,000, you’re getting $500 a week, it’s essentially five percent.
It’s around 5%.
A great win for the property buyers
And we go into all of those things when we’re sitting down and doing the discovery meetings, but more or less if you’re achieving 5% plus, it’s pretty much paying for your whole mortgage! [On the current interest rate].
That’s two really good wins, two extremely happy buyers. Yeah. In fact, something you probably don’t know. I was on the phone to them the other night and they’re going to come over to Perth and view the properties in about 2 to 3 weeks.
That’s amazing. I mean, take just a quick rundown of the clients we have a three-week purchasing window pre-approval was running out. They wanted to buy two properties, $450,000 each, they wanted to get a minimum four and a half per cent rate return. One was at 6%, one was at 5%. So we exceeded all of their expectations and on top of that they were doing all this from another country’s time zone difference.
Why we are Perth most authentic buyer’s agents
You’re talking and dealing with the clients up until 10:30 or 11:00 at night. That’s what we do for all of our clients. We’re always prepared to go the extra mile!
Until next time, guys, as always, happy investing.