Are you looking to buy in 2024? Whether you already own property or you’re venturing out for the first time, a buyer’s agent is an invaluable asset. When it comes to expanding your real estate portfolio, you’re always best served to slow down and make sure you’re making the right decision.
Relying solely on your own knowledge and experience is one way to go, but it pales in comparison to enlisting a professional who understands the ins and outs of the market. Buyer’s agents keep on top of current trends and know how to diversify your investment holdings.
A buyer’s agent can also provide guidance on areas such as legalities, financing, taxation, and negotiation. Essentially, they make sure you don’t miss out on a great opportunity, and may even be able to secure a better deal for you.
What’s more, a good buyer’s agent has a well-connected network of contacts to set up viewings and inspections that are tailored to your preferences. They’ll also be able to arrange access to properties that you wouldn’t normally have access to, such as off-market listings. As you can see, taking this approach opens the door to new opportunities and gives you a leg-up over other buyers who are going at it alone.
What is a Buyer’s Agent in Real Estate?
If you’re new here, we’ll quickly break down the role of a buyer’s agent in real estate and property purchases. Put simply, a buyer’s agent or buyer’s advocate represents and is compensated by the buyer, whereas a selling agent represents the seller. They are licensed real estate agents whose sole job is to work for you (the buyer) and protect your interests in the following ways:
- Identifying your needs: A Buyer’s agent starts by understanding your unique requirements, whether it’s the number of bedrooms, proximity to amenities, or potential for future growth. Their goal is to align your property search with your specific lifestyle and investment goals.
- Research and due diligence: Buyer’s Agents conduct thorough research and due diligence on potential properties. From assessing market trends to scrutinising property histories, they leave no stone unturned to supply you with comprehensive information to make informed decisions.
- Searching for your next property: Armed with your criteria, they scour the market, filter out the noise, and present you with a curated selection of properties that precisely meet your needs. This not only saves you time but also focuses on options that align with your vision.
- Negotiating on price: A buyer’s agent is your seasoned negotiator. They use their market knowledge to secure the best possible price for your chosen property. From subtle tactics to strategic manoeuvres, they’re in your corner, working hard to make sure you get the most value for your investment.
Without the guidance of a buyer’s agent, it’s easy to make one (or more) of the five most common mistakes that property investors make. These include emotional decisions, lack of confidence, time-wasting, lack of understanding, and a lack of foresight.
Having a buyer’s agent by your side can help you avoid such mistakes and achieve your financial goals. They will help you find the right property, work to negotiate the best deal, and provide expert advice on everything from financing to market trends.
3 Ways to Build Your Property Portfolio
Buyer’s agents, like any professionals, vary in their approaches and perspectives, with each offering unique insights and investment advice. At Property Analytics, we’re no strangers to weighing in on the property game. We know that long-term wealth is best created through equity, capital growth and a solid understanding of the property market.
1. Equity and Your Investment Property
When it comes to nurturing a property portfolio and wealth, using the equity currently present in an existing property is one of the most successful methods. Having the right advice and knowledge for capital growth and creating a positive rental yield is also essential in order to increase profits.
Over 50 years, international investors have demonstrated that when you focus on proper market selection and access to capital growth strategies, it’s possible to grow your asset class much faster than if you wait for a substantial new deposit. However, this isn’t always possible for those just starting out who don’t have a pre-existing asset base. For these people, cash savings still play an important role in securing their first investment property.
Whilst saving for a deposit can be time-consuming, shrewd investors build wealth more quickly with careful planning if they take advantage of the available equity that already exists in current investments. To find out more about equity and how much of it is usable, get in touch with professionals at Property Analytics.
2. Put Capital Growth First
Capital growth vs rental yield: which strategy should you choose? Our best advice for clients is to purchase the property that will grow most in value over time. Wealth through real estate is achieved through asset appreciation (price growth), not through cash flow (rental yield). When securing investment properties, our primary point of emphasis is future capital growth prospects.
When looking at future capital growth, it’s important to plan ahead and consider long-term trends. Property markets across Australia are constantly changing, and buyers need to be aware of both current trends and future predictions. Buyers should also research past property cycles in their area of interest to gain insight into what could happen in the future.
3. Understand the Property Market
Finally, investors should understand the property market and the various options available to them. No matter your level of investment experience, understanding the property market is key to successful property investing.
The property market changes quickly and can be unpredictable, so it’s important for investors to keep up to date. This means understanding what kinds of properties are currently in demand, how demand is changing and how different geographical locations can affect capital growth. Buyer’s agents have a wealth of knowledge when it comes to the wider property market and can help you guide you to property success.
Property Analytics: Your Trusted Buyer’s Advocate in Melbourne
Investing in property in 2024 and beyond may seem intimidating, but it doesn’t have to be. With a buyer’s agent by your side, you can rest assured that you are making smart choices and maximising your returns on investment. Once you’ve partnered with an agent, they will help you analyse the market dynamics of the current environment, and advise you on the best investments for your individual situation and portfolio goals.
It’s time to grow your investment portfolio, and Property Analytics is here to help. Reach out to us today to speak with an expert.
