Can you represent yourself as a Buyer’s Agent?
The short answer is, yes you can? In fact the whole industry of ‘Buyer’s Agencies’ is a relatively new one. When you’re looking to buy your own home, using a good buyer’s agent who understands what you’re looking for, your budget and time frame can save you time and stress. Choosing a good one with experience and proven negotiating skills, can also save you money. They can represent you at auction too, and that alone, can save stress and money! A buyer’s agent tends to work within a pre-defined geographical area and because of the relationships built up over time, is usually able to access off-market property by working with sales agents in the area who know who is selling or likely to see in the coming months. A buyer’s agent has access to a limited amount of data that can help with your property purchase, such as historic sales figures, expected rental amount per week, stamp duty costs and proximity to local schools and public transport. When you’re buying your own home this information is great, especially if you’re not all that familiar with the area. When you are looking to buy a property for investment purposes, there is a lot more that you need to understand. I often tell my clients, when it comes to property investment you need to think of ‘cash flow, not kitchens’. This is what I mean by that. ‘Knowing your numbers’ is essential to really understand what property will make a good investment that fits your strategy. What strategy, I hear you ask? Well, some investors are looking for the kind of capital growth that will ensure a comfortable retirement, others are looking to build a robust portfolio and want to replace their incomes. Some investors only invest in new property for the tax depreciation and to mitigate the maintenance risk and others want to buy an established property they can improve upon quickly to add equity. There are lots of different strategies you can pursue and it’s important to find a buyer’s agent who can help you to unpack your strategy and then find property to match. Finding the property to match means understanding the macro research – economy, population, demographics, employment, infrastructure and lending policy for investors to uncover the capital city or region set for strong capital growth. This is about getting the timing of the market right and knowing these numbers is critical. At this point it’s more likely you’ll need a property investment specialist rather than a buyer’s agent because to truly identify the right property at the right time in the right place for property investment you need to look into the micro research too and the specific numbers to create a cashflow for the property, preferable both before and after tax. Numbers like the rental yield, vacancy rate, tax depreciation figures, council rates, property management fees and many, many more are the numbers required to truly understand the type of property you should be investing in.
Before you decide on your buyer’s agent for property you intend on investing in, ask these questions and do your own research on the qualifications, reviews and experience your agent has. Calla Property relies on a significant amount of research to consistently identify the best properties for investment purposes and we also have the financial qualification to help you to understand how much your property will cost you in the first year. While most people are looking for capital growth, if your property costs you too much to hold, to the point that it compromises your lifestyle, there is a good chance you’ll need to sell your property and will never realise the growth. Having a clear understanding of all these numbers is essential to building a successful property portfolio. We offer this service at no cost to you, so what are you waiting for? Get in touch with us today at https://callaproperty.com.au/
If you would like recommendations to any of these finance/property professionals, please reach out to me and I’ll introduce you to the right people to be in your Wealth Creation Team. Contact +612 8006 1517
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