Why would you want someone else to buy a property for you? - OCTOBER 2018
By Guest Blogger, Peter Koulizos, property lecturer and author www.thepropertyprofessor.com.au
There are countless things in life that we have other people do for us but why would you use a buyers’ agent to buy you an investment property?
Many people choose to pay someone else to clean their car or house. Why? With all due respect to house cleaners and car detailers, it doesn’t take a lot of skill to clean a house or car so it can’t be because car or home owners lack the skill to do this task. It’s more likely that they don’t want to do it because they don’t have the time or they prefer to spend this time doing something else.
Some people are great with their hands and love going to Ikea to buy flat pack furniture and putting it together. Or the highlight of their weekend is going to Bunnings to buy a new power tool. I am a little embarrassed to put this in writing but I think that I am the world’s worst handyman. I don’t even have a power tool in my shed!
My wife took me to Ikea a couple of weeks ago (notice I didn’t go there of my own free will) to buy a small gardening table and to my amazement, I was able to put it together. This is mainly because it only had two moving parts and didn’t take much skill. After Ikea we went to Bunnings and do you know what my favourite part of the trip to Bunnings was; the sausage sizzle! We did buy a new outdoor gazebo but due to my complete lack of handyman skills, I am paying someone else to put it together this weekend.
A few people do their own tax rather than pay an accountant. This might be fine for those whose main income is a salary from just one employer and they have little or no tax deductions but as I have numerous investment properties and am not an expert in tax, I pay someone else to do my tax.
Back to my original question: Why would you want a buyer’s agent to buy an investment property for you? For some people, the reason is that they don’t have the time or would prefer to spend their time doing something other than attending open inspections and bidding at auctions. For some people, the reason is that they lack the skill. Buying investment property is a big job. It is probably one of the most expensive things that you will buy in your life time and there are so many factors to consider; macro location, micro location, the local economy, capital growth drivers, indicators of gentrification, indicators of urban renewal, ideal size of house, style of house, ideal size of land, condition of the house, zoning (if you’re interested in developing), etc, etc. All of this takes skill and knowledge. It’s easy to buy any property but you want to buy the right property for your circumstances.
So, what will you be doing this weekend? Cleaning? On the tools? I will be paying my son to wash the car and a handyman to put together the new pergola whilst I go to some open inspections.
Peter Koulizos, property lecturer and author – www.thepropertyprofessor.com.au