Welcome to Location Property Group

Whether you are looking to buy, sell, rent, manage or invest, Location Property Group is the first choice.

Simply put – we are independent and proud of it, working harder to offer sellers, buyers, landlords and tenants a quality tailor made service.

Contact us via our online form or call us on 02 9439 3188 to discuss your property needs.

Welcome to Location Property Group

Whether you are looking to buy, sell, rent, manage or invest, Location Property Group is the first choice.

Simply put – we are independent and proud of it, working harder to offer sellers, buyers, landlords and tenants a quality tailor made service.

Contact us via our online form or call us on 02 9439 3188 to discuss your property needs.

Latest from the blog

  1. Property Development Sales: Q&A with Ajay 14th Oct 2018

    There are several strategies and tactics that drive sales in property development. In this post, I talk to Ajay Valanju about how Location Property Group helps developers to sell their product. How does Location Property Group add value and make sales as well as the various options a property developer may consider depending on the market. How Does Location Property Group Approach Property Development Sales? We go and look at the development project, visit the site and look at the floor plans and price to see which ones might make a good investment for our clients. We would then meet with the prospective buyers with our recommendation. How Important Is Understanding Your Market When It Comes to Property Development? This is very important. Our local area is known for downsizers or first home buyers. The requirements for different buyers heavily influence the local property developments and marketing. It is costly if you get this wrong. For example about 20 years ago there was a development in St Ives for over 55’s. To maximise dwellings, 2-story townhouses with stairs were built. Most people 55+ wanted one story homes in case they had issues climbing stairs in the future. So the developer struggled to sell the property. What Is The Biggest Challenge For Property Developers? The biggest challenge is the property developers choice when it comes to property development marketing. Essentially they have 3 channels to choose from: Build their own team and spend big on marketing This would mean spending less on commission to agents in home sales Appoint external agent and only pay the agent if they have success External agent will market to their existing clients Exclusive agent Spend a lot on marketing the property - commission somewhere between 1 and 2 Each option has different benefits and drawbacks. Which Channel is Best to Sell Property Developments in a Cooling Property Market? The external agent model is the best in a cooling property market. The agent can use their good relationships in a time that there is a lot of negativity in the media to sell a property. Whereas in a buoyant market the developer is more likely to spend on in-house staff and flashy marketing campaigns. As the market goes through different cycles, property developers will choose different channels. In tougher times, developers go to agents such as Location Property Group for their property development marketing. Agents tend to charge a higher fee than it costs to hire a member of staff, so when the market is hot, they revert to spending more in-house. How Important is Social Media When Selling a Property Development? Social Media is important for the property developer in communicating the right message to each of its audiences: a) the relationship with the agent and b) relationship with the customer. Buyers now want to see more information online and will do their research and look up the company on their social media channels. 10 years ago I would sit down with a customer, show them the floor plan, price list and discuss the features of the property. They would sign up to buy the property at the meeting. Now customers want to go away and google the name of the developer and do some more research before they buy. In the same light, if I was travelling somewhere 10 years ago, I would have relied on one person's advice when deciding where to go for dinner. I would have asked a local where to go for dinner. Now I would go to the Internet and find a review site with suggestions from thousands of people who have visited local restaurants and have provided their feedback. Social media would definitely have an impact on the way a potential customer (or agent) perceives the developer and property development itself. If done well, it is a great way to communicate the benefits of your product. How Does Location Property Group Build Trust with Potential Buyers? The first step to building trust is to make sure that the developer can deliver on what they are proposing. We do thorough research to ensure that the developer has a strong track record, this provides a level of comfort for potential buyers. Some of the things we looks at are: What is the developer’s track record? How long have they been in business for? We go and look at previous property the developer has built and check if it is being properly maintained We get testimonials from people in the completed buildings Searching online to see their reviews If the developer has a good record then we can market to our network. Does Location Property Group Market to Local or Foreign Buyers? Our business has grown by focusing on local buyers, particularly with friends and family and friends of friends. Also, it is easier for the local buyer network to get finance than international buyers. Stamp duty is very high for foreign buyers. We do have some international clients, however, they have permanent residency in Australia so there are no issues for them here. Why Do Property Developers Come to Location Property Group? We have a strong network of property investors. What distinguishes us is that a lot of our clients own multiple properties. Whereas many agents will spend a lot of time marketing to a buyer, our buyers are different: they may buy 5-6 properties over a 5-10 year period. We form long-term relationships with our clients and build their wealth over time. Our whole team have property portfolios and so can see things from an investors perspective. We can understand the pressures as a landlord and can make recommendations based on our own experience. You can read more about our service on the Property Development Marketing page.

  2. Sydney Property Market 2018 - Tips in a Cooling Market 17th Oct 2018

    One of the big talking points in the media this year is the cooling of the Sydney Property Market. Read on to find out why we are in the current climate and what opportunities exist for sellers, buyers, developers and agents. Why Has the Sydney Property Market Cooled? Why Are We Seeing a Decline? The ingredients for a strong property market still exists as interest rates are low and there is a supply shortage of dwellings in Sydney. Changes to finance rules have made it more difficult to borrow from the bank. This along with negative media about the marketplace has caused the drop. What Are the Positives of a Cooling Market? There are good opportunities to buy. We tend to look at the market as one big beast, but in reality, it is many individual vendors and buyers and all their circumstances are different. For example, a vendor may have a reason to sell their property straight away and as such, they are likely to be much more negotiable. There are still gains to be had in the Sydney Property Market. For example, Ajay Valanju bought a studio apartment in December 2017 in St Leonards for $530K and on sold in March 2018 for $575. It was furnished for the sale which brought more interest from the market. Is It a Good Time to Buy or Is It Better to Wait? Always buy when you are ready to buy. Generally, the market goes up, with the occasional 5% or 10% fall, but these are few and far between. In the long term the value will increase, so you should buy into the market as soon as you can afford to. Is It a Good Time to Sell or Is It Better to Wait? This is really up to your personal circumstances. Some say to upgrade in a falling market, however, the market is unpredictable in the short term. If anyone thinks they are capable of predicting how a market will move in the short-term they are kidding themselves and could easily fail by guessing incorrectly. As a general rule of thumb property doubles every 7-10 years or 15-20 years with a lower inflation rate. In the current climate, you would expect the property to double over 12-15 years. This is the underlying reason to invest - you will make money in the long term, rather than responding to short-term swings and movement. What Approach Should Property Investors Take? Be relentless when applying for loans. You may have read in the media that it is not possible to get interest-only loans, or that interest only loans are converted to interest + principle loans. Ajay has been able to secure 3 properties in the last 2-3 months on interest only. He had to talk to a lot of banks and brokers and in the end, the loans came from a non-bank lender. The media say a certain line about the Sydney Property Market, however, it is still possible to achieve what you want if you are determined! How Can First Home Buyers Benefit? Take advantage of the government incentives on offer: First Home Owner Grant $10,000 for brand new properties up to the value of $600,000 First Home Buyer Assistance Scheme - provides exemptions on transfer duty (formerly stamp duty) on property new and old for up to $650,000 with a sliding scale up to $850,00 with concessions. The challenge is to get a brand new property under 600k in Sydney. Studios and 1-bed units are a great way to get into the market and at 600K that's almost 34K in savings. A lot of first home buyers think about buying a house they will be in for 5-10 years or longer, however its difficult to get anything like this under 750k in Sydney. A good strategy is to take advantage of the government savings, if you are eligible for the First Home Owners Grant and associated transfer duty savings, get on the property market, then look at upgrading in a couple of years. If you are in a couple and not yet married, you can use the first home owners grant for each person. There is a requirement for the purchaser to live in the property for 6 months within the first 12 months of purchasing the property. What Does It Mean for Real Estate Businesses in Sydney? There are a lower number of prospective buyers at open inspections, therefore less competition. Good quality properties will still trade at or close to the market high. Properties by the main road, or with an unusual floor plan would be more adversely affected. This could be a strategy for buyers as they are more likely to be successful in negotiating a disproportionate discount. In the local market, the lower north shore hasn’t seen a downturn, and prices are at a similar level to before the downturn. In Parramatta, we have found that there has been a retreat in near new units, due to a large supply and construction in the area. How Should Property Developers Approach The Cooling Market? Property Developers should be realistic with pricing and adjust their expectations to what people are willing to pay. In a buoyant market, new dwellings would typically sell for 20-30% above the existing market as there is a premium for brand new. Summary In summary, it's not all doom and gloom in the Sydney Property Market and you should buy when you are ready and able to enter the market. There are advantages to buying now as interest rates are still low and there are some great incentives for first home buyers if they are willing to start small. As for investors, the market is cyclical and prices will eventually go up, so it's a good opportunity to buy if you are ready.

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