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Mid 40s couple with 2 kids

This next Client Story is around trust and high detail. The back story for this particular client, sets the scene here. So, we’re talking about a Melbourne couple in their mid-40s, with a couple of kids, they are planning clients, and they work with Damien.

The brief was a $600,000 purchase with around 6.5% growth and 4% yield. The story around trust and high detail comes from the fact that the male in this particular case had watched his parents be ripped off by property spruikers. And he was very, very skeptical about all of the industry, as he should have been. To build that trust we needed to go into some high detail, and that’s why he opted to work with Damion to do the plan because the planning is very high-detail, but also so is the execution. There was a period of time there, that you have to work with a client and start to build up their knowledge and confidence around what you’re about to execute on.

This a high value transaction so it’s important that we get this purchase right.

Matt Skehan, our Buyers Agent who was working with this particular client, was really about making sure that we were able to build that trust up, and to document why we were going to buy the properties that we bought, and in the right location that we were going to buy it in. It’s really important that we look at. We did that, where we go into that detail story. We were going shopping in Brisbane for this particular property as well, and how we were able to secure this property was a couple of important things.

One thing, we had all of our ducks lined up, so we had our finance and all that ready to go, and we know what our purchase price was based on the plan. So we were able to have a quick speedy offer put in there. What you do is you put that quick offer in, and you lock that property away. So sometimes if you’re searching online for property market demand you can see property under offer, or you can see a sign on the signboard that says under offer, well that’s exactly what you do. And you give yourself seven or 14 days to actually to get all of the extras done, such as the building and pest inspections and so forth.

This particular property had a problem with the roof and that was identified prior to putting our offer in.

We saw that the roof wasn’t necessarily perfect, so we offered $600,000 for this property. But the property report came back to say that the roof repair was going to be around $12,000, so what did we do? We could either cancel the contract, but we’d had some negotiations in there around what we thought it worth. People were thinking it was worth a little bit more than that, and we were sitting back saying, “No $600,000 is the point”, but now we’ve got evidence of this real roof problem. So we go back to the agent who then goes back to the vendor, and we say, “This thing’s going to cost us $12,000, so we can either pull out of the contract and you can put it up for sale again, or we can negotiate a good outcome”.

Now this was a three bedroom house, one car, one bath, had a nice deck around it, 600 square meters of dirt. So the land to asset ratio on this particular property was what we were really interested in, not so much the asset, we could improve the asset, but the land to our asset ratio was incredibly good for us. So, that’s why we were so interested in the property!

Matt negotiated hard with the agent and got a further $9,000 off the purchase price. So the final purchase price, $59,100, and we were able to secure this great property with a really great land to asset ratio. And the property’s still ready to go into, with some roof repairs. From that point of view, a win for that customer in terms of getting the right asset, but also I think a confidence booster for people who have been burnt before.

Not everyone is a professional advisor, so it’s important to understand that, and he had seen that first hand, so he wanted to build that confidence up. He saw through the high detail and all the questions and the research we do, that we were the business for them, and we were able to execute that. I think overall, happy client and a good demonstration of the skills of when you come visit a professional advisor.

 

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