How Investors Can Win At The Wealth Game - March 2022
Over the past two years we’ve witnessed shifting buyer activity. A raft of government assistance schemes coupled with financial uncertainty around the pandemic (and other disasters) saw more owners and less investors buying property in 2020/2021.
But what I’ve noticed lately – both in the statistics and on the ground – is that the pendulum is swinging back.
The thing for today’s investors to remember is this; while Sydney and Melbourne now have higher listing numbers and less competition than last year, don’t be fooled. We remain in a historically warm market where the very best properties are receiving plenty of interest from purchasers.
This means anyone looking to invest must still work hard to secure the right assets at the best price.
So, within this environment, what can investors do to ensure they win at the real-estate wealth game?
Stay shark proof
The best way to make your money is avoid those trying to take your money.
I love the property advisory and investment industry. Unfortunately, like other sectors, it has its sharks. These are ‘advisors’ and ‘consultants’ who’re motivated to sell you a property for their financial benefit, not yours.
I’m talking about people like marketeers who collect huge commissions from developers for selling their property to unsuspecting investors.
These unscrupulous sorts will camouflage their sales by presenting sub-standard properties as ‘quality opportunities’ to groups of investors who are mistakenly led to believe they are the marketeer’s client. Make no mistake – the marketeer works for themselves, and the developer. You will be paying a price premium for their stock.
A tell-tale sign of this rort is the investment seminar. A room full of buyers are gathered and ‘sold’ on the amazing wealth to be made by purchasing particular kinds of real estate. The marketeer will tell you they have exclusive access to brand-new property in a certain development. They’ll highlight the benefits of negative gearing and rental guarantees, regardless of your personal circumstances.
It a disgusting practice that bleeds money from unsuspecting, everyday Australians.
When it comes to investing, there is no one-size-fits-all approach. Your circumstances, needs and goals are unique – and so should be the advice you receive, and the property you purchase.
Pick truly independent guidance
Having a truly independent professional on your team is the surest path to winning the investment game.
I can hear some of you saying, “Of course you’d say that Rich… you’re a buyers’ agent!”
But as past President of REBAA and an advocate of protecting property buyers for more than two decades, let me tell you why I believe using a buyers’ agent is the best possible option for investors.
Firstly, they will unearth property options that you can’t. This isn’t a slight at your investigative skills as a buyer, it’s just a stone-cold fact.
We spend years building networks and forging relationships that help our clients get ahead. Agents call me regularly with pre-market and off-market opportunities. I get to assess these early and hand-pick the best for my clients before the open market even gets a whiff of them.
Then there’s due diligence and negotiation. We draw on our skills to assess property criteria at a micro and macro level to ensure you are choosing the right investment for your needs. I have access to a huge amount of both qualitative and quantitative research. I can also efficiently analyse an opportunity based on years of experience.
I can use that information to advise a client on whether to proceed with a purchase, and what offers to make in terms of price and contract conditions.
Relationships are key to getting the best outcome in our profession. Selling agents know that when they’re dealing with a buyers’ agent there will be no time wasting. We take lead on the discussions and can deliver quick ‘buy/don’t buy’ guidance to our clients.
We also manage the post-contract process for our buyers. Building and pest inspections, legal and conveyancing outcomes, dealing with in-situ tenants, pre-settlement inspections… you name it, we can help.
This ongoing advice in a changing market also means you can pivot as necessary during the settlement period. For example, if something unexpected is unearthed by a building inspection, we can discuss reopening negotiations with the seller to see if they can provide compensation in the contract price or conditions (or get it fixed prior to settlement).
Finally, buyers’ agents are on hand with post-settlement and ongoing support. Securing the right property manager, dealing with the raft of rules and regs around becoming a landlord… we have the knowledge to help you make smart decisions.
So, if you want to win at the property investment game, don’t go it alone. Secure the services of an experienced, well-connected buyers’ agent. It makes sense because rolling the dice on property investment is too risky to leave to chance.
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