A wise man once said….” It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” That wise man was Warren Buffett, and if anyone can give investment advice, he can. The same principle applies to buying an investment property. How to choose a good investment property? Make sure it’s a quality property.
Unfortunately, many property buyers primarily focus on finding the cheapest ‘bargain’ property. Don’t get me wrong, we’re always on the hunt for bargains but often what may appear to be a great deal on the surface actually turns out to be a lemon. These properties are likely to cost you much more money in the long term: they are cheap for a reason and you run the risk of having a long-term poor performer on your hands. Either that, or you will need to spend money rectifying that was wrong with the property in the first place for it to be a “bargain”.
If a property seems inexpensive in comparison to other real estate in the area, there is probably something very wrong with it. Whether it be the location, bad neighbourhood, fundamental building issues, inferior floor plan, bad aspect or simply a poor design, these “wrongs” will ultimately compromise capital growth and rental return.
In many cases, when we have represented our buying clients we’ve delivered outstanding results for them. But, in our purchasing strategy it’s much more about finding the right property as our main focus is to identify property which most suits our clients’ needs, requirement and property goals. Once, we’ve identified the right property, our next challenge turns to trying to negotiate and secure it at the right price. But, usually there’s only a very small window of opportunity and as a result of a suddenly forced sale, or a poorly handled sales campaign, perhaps an initially unrealistic vendor who missed their opportunity to maximise their price or simply terrible presentation for sale.
We’ve also found over the years, one of the biggest issues’ buyers face is that they ask the selling agent for advice about the property they are looking at buying from them. Unfortunately, the buyer thinks that they’re doing the right thing by asking the selling agent questions about the property and forms part of property research and due diligence. But, how can it be? It’s certainly isn’t objective and independent advice, because the selling agent is actually representing the seller. Therefore, any advice buyers receive from the selling agent should always be taken with a ‘grain of salt’ and be met with caution. And, ask yourself this question – If you were going through a marriage divorce, would you directly ask for information or advice from your ex-partner’s lawyer? I wouldn’t have thought so. No, you definitely wouldn’t even contemplate asking that question from your opponent. In that example, you would seek advice from a lawyer who is exclusively representing your best interests only.
How to choose a good investment property if you only want to snag a bargain? Basically, you need to be in the right place at the right time to take advantage of one of these situations. We see people miss out on these great opportunities simply because they weren’t ready to make a decision or haven’t got their finance pre-approved in time.
Those buyers who focus their attention only on “bargains” often don’t even notice amazing properties that may be available at a fair price. In fact, this kind of approach is a ‘race to the bottom approach’ which focuses on the poorer quality end of the real estate market. Whereas, Your Australian Property will always focus on identifying a high-quality A- GRADE INVESTMENT properties that we know will deliver our clients sustainable long-term capital growth.
Why Use a Buyer’s Agent in Melbourne: At Your Australian Property, we offer comprehensive end-to-end support from identifying and analysing your selected properties to dealing with selling agents, attending property inspections, purchase negotiations and / or auction bidding on your behalf. And because we have our fingers on the pulse, possess unlimited market knowledge about the Melbourne Property Market, know what questions to ask and what information is relevant. Our expert and independent buyer’s agents in Melbourne, will take the time to understand your situation, exactly what your requirements are, your time-line and preferred budget, then create a tailored property strategy to get into your ideal property, fast!