Buying an Investment Property in Queensland
Brisbane and Regional Queensland offer some of the best opportunities to invest in residential property in Australia. When building an investment portfolio choosing the right property is of fundamental importance. An investment property needs to have the potential for high capital growth and/or rental returns and it needs to be affordable (in terms of cash-flow) so that it can be held long term. Investing in property should be low risk – especially when the family home is used as security.
Searching for an investment property can be a complicated and time-consuming process. Many investors are unsure about the best towns or suburbs to invest in; or the type of property to buy (new or old house, apartment or townhouse); or even what price range to search in. It is easy to become frustrated with the search process especially when it seems like you’ve found the ‘perfect’ property on the internet only to find that is disappointing when seen in the flesh. Frequently properties are being sold by auction or without a list price – many investors find this off-putting.
Selling agents are employed by the vendor (seller) and paid a commission when the property sells. Their role is to represent the best interests of their client and achieve the best possible sale price. Buyers should understand this alliance and be cautious of any advice they receive – especially when it comes to price. Real estate agents are trained and experienced in negotiating the purchase price and contract conditions to achieve the best outcome for their client. This can make negotiation intimidating and confusing for buyers who are constantly on the back foot, never sure whether there really is ‘another offer on the table’ or not. Negotiating from a position of weakness or inexperience often means that investors pay tens of thousands of dollars too much.
Your Property Hound is a licensed buyer’s agent and advocate. We tailor our services to meet your individual needs and bring the enjoyment back into property buying! We work for you to find suitable properties, negotiate their purchase and guide you through the settlement process.
There are many benefits in having a buyer’s agent represent you.
It saves time:
Purchasing property is a time-consuming process. Once a location is chosen then the property search begins. Viewing 50-100 properties will give you a good indication of what is available and how much properties are selling for. If you are prepared to view 5 properties every Saturday then you could be ready to buy in 3-5 months time. Many prospective buyers will have been looking at properties for 12 months or more. Property prices can increase significantly over this period of time.
Your Property Hound has a working knowledge of property prices and market conditions and can dedicate their time to sourcing appropriate properties that align with your criteria. Most properties are sourced within 4-6weeks. Employing a buyer’s agent will give you your weekends back and can help to secure quality properties more quickly. (Hopefully before the market takes off!).
It saves money:
When purchasing an investment property it is important that you don’t pay too much. A buyer’s agent is trained and experienced in property negotiation. A buyer’s agent knows many of the tactics used by selling agents and how to counter them. Using a buyer’s agent will achieve the best possible purchase price for you. In practice this could easily amount to a savings of $50,000 on the purchase price of a $500,000 property.
Your Property Hound is experienced in the purchase of investment properties where rental return, capital depreciation, and ongoing costs (e.g., maintenance, body corporate, insurances etc.) can have a massive influence on an investor’s cash flow. These factors can ultimately influence whether the property is affordable or not. Using a buyer’s agent to source and evaluate investment properties can save hundreds of dollars per week in holding costs. These savings could then be re-directed into your home mortgage or used to build your property portfolio. (An overseas holiday would be nice now and again too!)
It reduces risk:
Purchasing property is often the biggest financial decision that people make. Get it right and there is opportunity to build significant wealth and enjoy new lifestyle opportunities. Purchase the wrong property or pay too much leads to financial stress which can be difficult to recover from. It makes sense to seek profession advice and be fully informed before making a decision of this magnitude.
Would you employ a buyer’s agent to purchase your ideal investment property, save tens of thousands of dollars and get your weekends back?