Find out more about goodGround’s Buyers Agency…

A Northland real estate firm has set itself up as a “buyer’s agent” – whereby a property buyer pays it to work for them, rather than the seller.

Waipu-based goodGround Real Estate says it has done three deals in which it has worked exclusively for the buyer, and it believes there’s a demand for the service.

Founder Martin Albrecht says through the firm’s new Buyer Agency Agreements, agents work to get the buyer the best deal on a property.

For example, a client to whom he had sold a farm wanted to also buy the farm next door and asked Albrecht to work for him rather than the seller. He managed to save the buyer $90,000.

“At the time there wasn’t a lot around about how you set that up. We managed to do it … and that’s what gave me the idea.”

At one point he got a call from a woman in Wellington wanting help to find a house for her in-laws who had arrived from the United Kingdom.

No Wellington agents were able to do it.

“They all put her on their list of buyers, but she wanted to pay someone to get her the best deal.”

At the time, goodGround couldn’t cover Wellington but now it would be able to, Albrecht said.

The cost of the buyer’s agent service is an engagement fee plus 4 per cent of the agreed value of the property, and 10 per cent for every dollar goodGround saves the buyer under that agreed value.

“When you think about it, it’s absolutely illogical for a buyer to be operating through an agent who is representing the vendor.”

Albrecht said the idea wasn’t new and he was aware of at least one company offering it. However, that firm did not style itself as a real estate agency.

Alistair Helm, CEO of website realestate.co.nz, said buyer’s agents were an American phenomenon.

“The benefit is you effectively have professionals working for both parties.”

However, in the United States the buyers and listing agents are both paid out of the commission from the vendor.

Likewise, there were deals done in this country whereby an agent with a buyer would approach the listing agent and negotiate to split the commission on a sale.

He had not heard of anyone just charging the buyer, and the internet allowed potential buyers to do a lot of research themselves.

But there was room for innovation in the market and it could be a service that worked along the lines of a personal shopper – for example, for an overseas buyer seeking a luxury holiday home in New Zealand.

“Why wouldn’t you pay somebody who’s in New Zealand to act as a filter to recommend, to negotiate?”

Albrecht confirmed his service was aimed at the upper end of the market.

Read this article on www.nzherald.co.nz…

If you want to rent your property or need to rent a property, goodGround Real Estate Ltd will be delighted to assist you.
Contact the office on 09 432 1077 or email martin@goodground.com

Why Invest in Property?

Investing in property can offer two main benefits which are tax advantages and capital growth.

In the beginning income from rentals wont exceed your outgoings on a property, principally the costs of servicing the loan. However when the property increases in value, rents have tended to rise faster than costs, and the property will generate a net income.

Remember that costs can be claimed against your taxable income.

When the time comes to sell, current tax laws means you don’t pay capital gains tax. So the money you make from the sale is tax free.

No advisor would recommend property to the exclusion of other investments. A strong portfolio is a varied one: with investments spread across different asset classes, including property, shares and cash. It’s also important to recognise that no investment is risk free. Some people have made their fortunes through property, but it’s also possible to lose money.

How do I get started?

Talk to us. We’re more than happy to talk property any time, with anyone! We’ll even shout the coffee. Nothing backs up what we say more than your own research so dont take our word for it alone..

Things to look for in an investment property

The two main ideals to a good investment property are desirability and low ‘running’ costs. Desirability is an individual thing and therefore subjective, but experience shows that the following elements make a property easier to find tenants for:

• External living. Whatever the size even a small area- deck or terrace- adds enormously to a property’s appeal.
• Good sized bedrooms. At least two double bedrooms are preferred.
• Good well designed kitchen and bathrooms.
• Neutral decor. While not everyone loves neutrals, neither do many people hate them. Bright colours can be a reason not to choose to rent a property.
• Location. Location Location!
• Garages. Lock up garaging is best, then a car port. Failing that, off street parking.
• Dishwasher. A nice to have
• Low maintenance, small section. Less work for the tenant and less work for you.
• Security features including fencing, great for small children.

Where to buy

• The main advantage of buying an investment property is that the emotional issues are removed that tend to come into force when you a buying a property that you will call home.
• Be objective. Have a check list; you want capital growth, so buy in an up and coming area with growth. These are often not the most glamorous suburbs. Note that high capital gains areas may also return lower rental yields.
• Do your own research. Good areas for renting will have easy access to transport, school zones, shops and leisure facilities.

What to buy

• A good investment property is one that you can afford and that you can charge a decent rent for.
• If the property you are interested in is currently being rented, research its history of tenancy and check if there have there been periods where it has been unoccupied? If so, ask why.