Our success story this week is a story about taking control of the sale of your own property. Shayle Woods shares her experience and has some tips on what to do and what not not to do if you decide to go it alone.

Today Shannon Davis has some more negotiation tips and outstanding advice if you don’t want to pay too much for your next property purchase.

Your investment journey is likely to be a long one, and as you grow your property portfolio over the next ten to fifteen years you’re likely to encounter some good economic times and some tough ones. Periods of low and high interest rates, booms in the property markets and some slumps as well. Today Michael Yardney reminds you to prepare for the worst, while hoping for the best – in other words maximise your upside while at the same time covering your downside.

Greville Pabst joins us to say that he is not concerned about the potential for an oversupply of units in Australia. He argues that we need to grow up and realise that we are “world cities” and the dynamic is changing.

Some time ago a couple of young entrepreneurs got together and created a buyers agency because they could see how the use of buyers agents was likely to be a growth industry given the overseas trends. Today we catch up with one half of the dynamic duo that makes up Cohen Handler to look at some market trends and we set out to bust some popular beliefs.

Also hear a great story of a young person’s journey to property ownership. There is a lot of talk about how difficult it is for your people to get a foot on the property ladder. Nicole Haddow might just have the answer.

 
Transcripts:
Simon Cohen
Kevin:  I love talking to buyer’s agents, because I see that buyer’s agents in Australia are really a great emerging trend. If you look overseas, in fact, some of the figures we’re going to share with you are staggering to me, and I’m sure they will be to you, too. About 80% of property buyers actually engage an agent to help them buy a property in America, but who pays the commission? This is the interesting thing.

I’m talking now to Simon Cohen is a partner in Cohen Handler. He and his good friend, founding partner and young entrepreneur, Ben Handler, started the agency some time ago, and it’s one of those great buyer’s agencies in Australia.

Good day, Simon. Thanks for your time.

Simon:  My absolute pleasure. How are you?

Kevin:  I’m fantastic, thank you. Simon, in the States, the commissions are a lot higher than they are in Australia. Who pays over there?

Simon:  Typically, the commissions are around 6%, and the seller pays that, and it’s split between selling agent and buying agent – a bit of an interesting model, but all paid by the selling side.

Kevin:  That is incredible – 6%. When you look at the average in Australia, it’s around about 2.5% to 3%. I know some agencies actually charge more than that, but that’s quite staggering, that figure.

Simon:  Absolutely right.

Kevin:  I want to talk to you about a couple of trends that you’re noticing and also help me dispel a myth. I commonly am asked whether there are good or bad times to sell and buy property in Australia. What’s your view on that?

Simon:  Typically, everyone says springtime is the best time to buy – everything comes on the market then. I think definitely, over the past two years, we’ve seen that that hasn’t been the case. The markets across the Sydney and Melbourne markets have been dry, and there hasn’t been a lot of stock.

Personally, we found at Cohen Handler some of the best times to buy are December, January, and July, when most of the other buyers are out of the market and you actually are competing with fewer buyers.

Typically, if you’re looking to buy, always find the times where there are fewer people that you’re competing against, but most people do think that September, October, November is the time. But in the last couple of years, it hasn’t really be