The Role of the Property Purchase Advisor.

Off-plan property buying has become highly popular in Gibraltar’s booming real estate market. The high demand relative to the limited supply of properties in Gibraltar has meant many developments are being sold out off-plan within matters of weeks if not days. Government too has last month announced the commencement of the off-plan sale process of its latest affordable housing scheme – Hassans Centenary Terraces, consisting of some 665 apartments.

Purchasing a property is something major that one wouldn’t typically do more than a couple of times in a lifetime. There are a lot of factors to consider when purchasing a property, especially when buying off-plan. Buying your future home is not just about finding a property and agreeing a price and completion date, etc. As a buyer you may face unexpected issues. Most of us would inspect a car before buying it. Thus, you minimise the risk of being duped. And of course, when you buy a property, this interest is even greater!

Many people don’t know that a property agent can only represent either the buyer’s or the seller’s interests, but they cannot represent both. However charming and obliging the agent may be during your viewings of the property or the off-plan simulations, the agent has instructions to sell the property for the highest possible price.

Here comes the role of the Real Estate Advisor or Purchase Advisor. A Property Purchase Advisor is a person who acts on behalf of the buyer to find and negotiate on properties that the buyer wishes to purchase. The buyer sets a list of criteria with the Purchase advisor, which includes; purchase price, location, desired yield, old or new, type of construction, financing (mortgage) structure etc.

After the client provides the Purchase Advisor with a brief of what type of property that they are seeking, the Purchase Advisor then takes care of the sourcing the right property, due diligence and negotiating on the client’s behalf.

From our experience as Purchase Advisors, we see clients seeking our services for diverse reasons: For example, a homeowner who’s trying to decide whether to ‘move or improve’ and wishes they could get objective counsel… Buyers who aren’t clear on whether they should buy now or later… Buyers who don’t know if the developer is sufficiently reliable… Or buyers who are not sure if they can obtain the necessary financing package.

The benefits of using the services of a Purchase Advisor include:

To save you time: Today’s busy lifestyles makes finding the time to research, locate and negotiate your next property purchase very difficult. This burden of not having the available time and resources often leads to people delaying their purchase decision, which may result in poor timing or indeed making a decision around your schedule, or compromising on various aspects, rather than buying the right property.

To save you money: The majority of buyers view the asking price as an estimate of the property’s value and base negotiations around this. In reality the asking price is a price provided by the selling agent who is acting for the seller/developer to achieve the maximum sales price. Through industry experience, current market knowledge, research and access to the appropriate historical records, a Purchase Advisor will evaluate and appraise the value of the property, how it stacks up as an investment and provide this report to their client. Then, through negotiation skills, a Purchase Advisor should negotiate the best possible purchase price, potentially saving many thousands of pounds for the client. It is important to remember you make money when buying property rather than selling. Many people lose money in property by not being so concerned about the purchase price, rather thinking they will make money on the sale of the property due to its capital growth over time.

Reducing your risks: A Purchase Advisor carries out the necessary due-diligences to minimise any risks to the buyer. This includes analysing the financial health of the developer to ensure it has a solid financial base to see the construction through to successful completion and beyond. Further due-diligence may involve examining Town Planning’s future development plans to the area to assess the possibility that future construction may negatively impact on views, or that an adjacent plot may be earmarked for a facility less desirable by residential purchasers such as a petrol station or any other construction that may have a negative effect on the future value of the property. Further due-diligence may include research on expected rates of return, rental yields in similar properties, and other market trends.

Financing package: A Purchase Advisor assesses your financial health and can advise on the right financing package to match your payment ability. Besides advising on the best available mortgage plans at local banks, the Purchase Advisor can also assist in sourcing non-bank financing and advise on ways to maximise your tax allowances post property purchase.

Objective & Professional: Above all, a Purchase Advisor provides the buyer with an objective, neutral opinion on the entire transaction, looking after the buyer’s best interests and helping make the purchase decision in a professional, non-emotional manner.

Whether you are looking to buy off-plan or general resale, as your Purchase Advisors we will look after your best interests, ensuring you buy the right property, at the right time and at the right price.

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Ayelet Mamo Shay & Eran Shay
Eran Shay Managing Director, Benefit Business Solutions Ltd. With over 20 years’ experience in the world of Finance, Eran specialises in helping companies grow in innovative ways. Eran has ample experience in the fields of Corporate Finance, Regulatory Advisory, Business & Strategic Planning, Valuations and Transaction Support and his focus on technology means he keeps in touch with innovative companies in a variety of sectors. Ayelet Mamo Shay Co-Founder & Business Development Director, Benefit Business Solutions Ltd. Ayelet specialises in online and offline marketing, sales, and PR. She is the author of the successful novel “Relocation Darling, Relocation!” and provides relocation consulting and personal coaching. A busy entrepreneur, Ayelet also serves as Chairwoman of the Gibraltar-Israel Chamber of Commerce.