Property Investors: Buy & Outperform Melbourne’s Property Market

Buyer’s Agent Melbourne: Tips

The property sector portrays property investment as a simple, straightforward exercise that anyone can do. Selling agents and property spruikers have dumbed down the buying and investing process for decades. However there’s ample evidence that indicates that there are many people that do not do it well. Their ambitions for success can lead to failure that can have dire consequences, negatively impacting more than someone’s financial position.

You may have attended an investment seminar that offers a property opportunity or strategy that will lead to incredible wealth creation. Or perhaps, you know of someone who purchased from a project marketer or property ‘guru’ that promised fantastic growth, that lead to their property valuation coming in at less than the purchase price at settlement. There have been many examples of people who entered the market in this way with the strategy of continual investment, however when they sought to access the equity, they discovered zero or negative growth.

This is bad news not only for the buyer, but also the mortgage broker or financial lender, as it’s important for them to maintain portfolio growth. Often in arrangements that involve third parties referring people to these property ‘project marketers’, a healthy referral commission is received, however the consequence for the individuals who invest their money can be catastrophic.

So what is the best approach for the budding investor? We’ve outlined some basic points to help investors buy property in Melbourne that will outperform the market.

1. Advice that is Free, Isn’t Free.

With everything you read and the people you speak to, ensure you differentiate fee for service unbiased and independent advice from that which ‘Free’ expert advice. It is almost always biased ‘sales advice, which ultimately doesn’t cater to the best interests of the property buyer.

2. Develop an Investment Strategy

Developing a well thought out and thorough documented investment strategy that takes in your medium and long-term goals is essential.

3. Risk Profile

Your initial analysis during the strategy development should also include your personal risk profile. Understanding your risk profile will provide guidance for the decisions you make in the future, to help ensure that the properties you are evaluating are compatible

4. Independent Research

Thorough, unbiased and independent research is critical to ensure that property is being purchased in a location that demonstrates a range of growth drivers for capital growth.

5. Use a Buyer’s Agent / Buyer’s Advocate

Buyer’s agents help with each step of the purchasing process. This includes the research, selection, evaluation and price negotiation. Having a reliable and experienced Melbourne buyer’s agent can help you save thousands of dollars.

6. Get Help From a Range of Experts

By employing a team of experts such as a mortgage broker, financial planner, and lawyer will help with each step along the investment journey. Their expert advice will help reduce costs, risks, maximise your return on investment and make the entire process much easier.

7. Review & Assess Annually

After you’ve purchased a property, reviewing and assessing it annually is critical. This process evaluates the financial performance of the property to ensure its achieving the level of performance set out in the investment strategy. Buying on a ‘set and forget’ basis, can lead to drastic financial implications.

Achieving financial goals in the property market requires adherence to these broad steps. By taking the time to understand and implement each of them, you’ll be able to mitigate risk, maximise the financial return and outperform Melbourne’s property market over time.

For more information on property investment in Melbourne, contact our friendly team of buyer’s agents. We’ll provide the advice and tools you need.