Property Investment Articles
This article describes the FOURTH ELEMENT of the SEVEN elements to building a successful property portfolio so that you can reach your financial goals sooner”
Download the full report at wholisticfinancialsolutions.com.au
4. The Right Property – “How to buy the right property at the right time in the right location in less than 5-minutes
“How to buy the right property at the right time in the right location in less than 5-minutes”
Sourcing the Right Property:
Once you have decided the Right strategy, organized the Right finance and sought the Right tax advice you then need to source the Right Property.
This can be an extraordinarily time-consuming, complex and confusing process. You can do it yourself if you have ample, and I mean ample spare time to spend hours upon hours every night and weekend researching and ensuring that you are completing your due diligence. You will need to research:
• the best states to invest in all across Australia
• the best suburbs within those states
• the best streets in those areas
• the demographics (in relation to those in the area – their age, sex, marital status, average income, family size andWhether they are renters or owners – both now and predicted)
• the capital growth of the area – both now and predicted
• the average rent of the area – both now and predicted
• the infrastructure of the area – both now and predicted• the government zonings of the area (now and planned changes)
• the government’s plans for development of roads, hospitals, schools, shopping centers, etc
• the government’s planned changes or improvements to surrounding roads, highways and suburbs
• plus many, many more factors
Once you have researched all of the above and you are sure that you have located the right area of Australia to invest in, you will then need to contact all the local real estate agents, set aside a few weeks of your time, try to arrange all of these agents to show you the stock they have on hand at that time and hope you can find a property that meets your criteria during this time, otherwise you will need to re-book the trip and go again when new stock reaches the market…
…or you can simply use a property buyer’s agent service or a property aggregator…
What is a buyer’s agent or property aggregate?
You need impartial, independent and reliable advice in order to be successful at property investment and that’s precisely what buyers’ agents and property aggregators are in the business of providing.
‘Buyer’s agents work for the buyer NOT the seller’.
Imagine that instead of having to contact heaps of different real estate agents and developers and then having to sift through all of the competing and contradictory information they give you, imagine if you could contact just one agent and they would do all the running around for you. They would contact many different vendors, real estate agents, developers, etc and, after determining what your needs and wants are, they will then present a summary of the best options available on the market at the moment that suit YOUR NEEDS.
That’s what Buyer’s agents or Property Aggregators’ do. They work for you.
They provide market analysis and identification of growth areas in the capital city markets. They identify, source and negotiate specific investment properties in keeping with market conditions and the client’s requirements. Clients are provided with recommendations in a written report covering:
• indicative investment cash flows
• detailed market demographics and commentary• specific property recommendations
• property plans, ,photos, specifications etc
• full financial spreadsheets
• assisting clients with the inspection and purchase of appropriate investment properties
• negotiation of purchase price
• coordination of the purchase process and ongoing client support
What to look for in a buyers agent
Independence is the number one factor. Ask them if they:
• Sell more than one product from more than one developer
• Have access to all of the fast-growing states of Australia.
• Are knowledgeable about investment strategies.
• Are experienced in property investment. Do they walk their talk? Ask them, “How many properties do you own?” Don’t be afraid to interrogate them. It’s your money they will be spending so you need to ensure you are 100% comfortable with their knowledge and experience.
• Have access to every other specialty field necessary to help you complete the transaction, that is:
1. property strategists
2. a finance team
3. tax advisors
4. property managers
5. life coaches
“A really good buyer’s agent is knowledgeable about most mainstream investment strategies. They have an understanding of what the client’s needs are on a more personal level with regard to their goals, strategies and fears. They have the ability to ‘hear’ the client’s views and to take them and turn them into fully-realized achievements.”
Why use a buyer’s agent?
In a nutshell, because they save you the time you would otherwise spend researching. They save you the cost of the trips (all of which are non-tax deductible as you haven’t selected a property yet). AND THEY ALLOW YOU TO SLEEP AT NIGHT because you have done your due diligence by focusing on selecting the right buyer’s agent, trusting them to select the right property.
Buyer’s agents are experienced professionals who buy properties on behalf of clients on a daily basis. They have extensive contacts and have many buying strategies at their disposal. In other words;‘They take a client’s request and apply their experienced strategies to deliver the best result for that client. You wouldn’t ask a boxer to do brain surgery…why not use an expert property sleuth to find the right investment for you?’
An example of this is my own experience with buying a property in Frankston, Victoria and Springfield, Queensland. For the Frankston property, my husband and I spent hours researching, calling agents, comparing properties on the internet, etc. Then we took four days off work, flew to Melbourne and spent four solid days in a hire-car looking at as many properties as possible. Our heads were spinning and we had no real idea of what we were doing. In the end, we spent $3,500 on the trip (not to mention the cost of four days off work and countless hours of research) and simply wanted to buy something…anything…so we didn’t have to do it again. So we bought the best of a bad lot and hoped for the best.
When we decided to buy in Queensland, we hired a buyer’s agent, accepted his recommendations and signed on the dotted line. To this day, we have not even seen this property and it has performed far better than the Frankston one.
I used to think I knew it all and could do it all myself. Now I realize it is far more appropriate and time-saving to pay the experts to do what the experts do best – allowing me to do what I do best – advising others on tax and finance strategies.