It goes without saying that people often invest in property to one day walk away with a profit. A buyer’s agent can make all the difference in how successful the return on investment will be.
The two main ways your property buyer’s agent can ensure you gain money from your investment has to do with rental income and capital gain.
Rental income
To ensure you are profiting from your rental income rather than losing money, you need an expert in the industry and region – that’s where a buyer’s agent comes in.
An experienced buyer’s agent will know the history of the property, which is important to understand the value of what it has been leased out in the past. A good buyer’s advocate will also know the property inside and out – this will help them recommend a price bracket. The surrounding area will also be a factor that gives the buyer’s agent an idea of the property’s value. So, if your buyer’s agent has a good knowledge of the history, character and location of your property, they will be able to put you in the best position.
For example, if a house used to charge $XX a month – but has since undergone renovations, the agent will be able to make an educated estimation about its market value. If the property is located in a high-end suburb, they will be able to suggest a rental value similar to others in the area.
Capital gain
The other way in which a buyer’s agent can help you work toward a profit is through capital gain. This has to do with the how the property’s value changes over time. An experienced buyer’s agent will be able to make predictions about any property they have researched and dealt with.
For example, if the potential property is in an up-and-coming suburb that has just had a new private school built in it, the agent will know this means good capital growth. As they understand the area, they know that more and more wealthy families will be looking to live there in the future – this means a more competitive market and a higher income.
With investment properties it comes down to getting out what you put in. If you take the step to hire a buyer’s agent, you have a much better chance of success. Particularly if you pick the right one – did you know that our clients have never lost money on a property we have purchased on their behalf?
