At D Residential, we help property investors by managing their property and tenants, but we often find ourselves part of the purchasing journey as well.
It’s no secret that Perth property is in demand right now, with our city constantly in the headlines as the nation’s fastest-growing capital. If you live interstate or overseas, you have probably realised that there is a great opportunity to secure a cost-effective investment property with capital growth potential and no shortage of quality tenants.
To make a smart purchase without travelling to Perth to view properties in person, many investors hire buyer’s agents. But how can a buyer's agent help you? We interviewed Perth-based buyer’s agent Ray Chua to get a more in depth understanding.
What is a buyer’s agent?
A buyer's agent is a qualified real estate professional (either licensed or working under a licensee), who is engaged to act on a property buyer’s behalf.
Real estate agents have a duty of care to a buyer but their loyalty is to the seller. A buyer's agent works exclusively for the buyer and represents their best interests.
Hiring a buyer’s agent provides you with professional guidance to navigate the tricky process of finding the right investment property or home. Using their insight into the market they assist you in finalising your offer increasing your chance of being a successful bidder. Your Perth buyer’s agent can work with you to bid at auction or negotiate via private treaty. If you’re not from the area, they can view the property on your behalf assessing the properties qualities and ensuring any concerns are disclosed to yourself.
How is a buyer’s agent different from a property manager?
Perth buyer’s agent Ray explains while buyer’s agents and property managers work under the same qualifications, their roles and functions are quite different.
“Property managers are more focused on assessing the rental value of a property, advising how to maximise the asset value, overseeing tenant selection and taking care of problems that may arise on behalf of a property investor."
“Your buyer’s agent’s skills are more focused on understanding the local market dynamics. If you’re a home buyer, you can get the best home within your budget with confidence because your buyer’s agent has ensured it meets your personal needs and stands as a great asset to own.
When a buyer’s agent works for a property investor, it’s about understanding what type of property would suit the buyer holistically and facilitating the best chance of experiencing capital growth and consistent rental income.”
Why you need a buyer’s agent if you don’t live in Perth
When you’re an out-of-town buyer, you don’t know what you don’t know. Like any city, different parts of Perth have different appeal and drawbacks. You not only need to get the right deal, you need to purchase in a location that suits your tenants’ needs. For example, a student-friendly apartment should be close to train or bus stops, or walking distance from the local university campus.
Liaising with real estate agents might help you find a place, but remember that they are pushing for the best outcome for their owners.
A buyer’s agent can bring detailed market understanding to the table. As Ray explains, “It takes local understanding to determine the factors that go into selecting the right property for any given suburb. Your buyer’s agent knows what people want.”
Buy a Perth investment property without the stress
According to Ray, “Property investment is like a team sport, and you need to surround yourself with the right team members to win the game.”
Before you invest in Perth, take the time to build a team of specialists to support you in your purchase. You’ll have financial advisors like your accountant, financial planner and mortgage broker. Then you need experts to help you lock in the right place and maximise long-term returns. A buyer’s agent and property manager will fill these roles.
Looking to invest in the Perth property market and need a buyer's agent? Reach out, we have the best network of specialists to help you navigate the Perth market.
Need a quality property manager once you have made your purchase? D Residential is ready and waiting to help.
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Apr 3, 2024
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Beat the competition when investing in Perth
It’s no secret that Perth has become the go-to Australian city for property investors. Locally based buyers now have the added headache of competing against people from all over the country and even around the world in what is already a tight market. If you want to beat the competition and buy property either as a home or as an investment, you need professional support on your side. Perth’s property price trajectory Since the pandemic, Perth has built its reputation for affordability and growth. It experienced several sluggish years but is now catching up to the rest of the country. Throughout 2023, the city’s property prices rose a whopping 15.2 per cent, comfortably above the next highest performer Brisbane at 13.1 per cent. However, despite the growth, median house prices in Perth sit at $660,754. Compared to Melbourne, where the median is $780,457 or Sydney, where it’s a whopping $1,128,322, Perth remains reasonably affordable. Being cheaper than other capitals has made Perth an obvious target for investors who are now competing with interstate and overseas buyers. The added challenge is a lack of stock; while developers and construction teams are building new properties, there is a shortage of quality homes and investment units in the most popular parts of the city. Your secret weapon for a faster Perth property purchase Because of the lack of stock and increase in competition, buyers are finding they need extra help, in the form of a buyer’s agent. This expert is a real estate professional who gives buyers the edge over the competition by acting on their behalf. When you work with a real estate agent, their primary client is the seller. They will give you some advice but their main interest is to achieve the best price possible for the owner of the property. On the other hand, a buyer's agent works only for you. Their job is to help you nail your ‘brief’, find a home and make it your own, sooner rather than later. According to Perth buyer’s agent Ray Chua, when you want to buy property in Perth, a buyer’s agent will help you to “save time in the research phase and get your weekends back. This expert will save you money by using strong negotiation techniques, while helping you to avoid the amateur mistakes that someone who doesn’t transact much in property may make. Most importantly, your buyer’s agent will help earn greater returns by selecting a better quality asset than you may otherwise have done by yourself.” How to stay a step ahead of the competition Buyer’s agents know the Perth market inside and out. They have the right knowledge and the right industry connections. One of the major benefits of working with a buyer’s agent is they have access to off-market listings. This means they can get you in to see properties that have yet to be widely advertised. As Ray explains, “There’s nothing wrong with looking at online listings since they are generally genuine sellers, but there’s a large pool of discretionary sellers, who would sell but have chosen not to, mainly due to not having enough certainty around where they would move to. Buyer’s agents can create mobility by working with a seller who isn’t really being proactive about moving on from their home. We give them more time to find their next home, and create a buying opportunity for our existing clients.” Your buyer’s agent will keep you that step ahead by staying connected with a network of real estate agents. They can find out what’s about to come onto the market before it does, helping you access the property ahead of the first home open. They can also negotiate on your behalf. “We ask the right questions and use our rapport and relationships with local agents as leverage to get a better deal,” says Ray. Make a smarter investment Perth may be booming now, but anyone who has followed real estate in the West knows that the market has clear high and low periods. The last thing you want is to buy property and end up with an investment you can’t lease out for the long term. A buyer’s agent has the skills to ensure you buy the right property in the right area so you will always find tenants and keep your rental income flowing. The final advantage of a buyer’s agent (and one that is similar to having a good property manager) is the network of professionals they are connected with. Ray explains that his business has “the benefit of trialing and testing various companies and keeping the best ones for our clients to use. This includes accountants, financial planners, mortgage brokers, property managers, building inspectors, reliable tradesmen and conveyancers. Property investment is like a team sport, and you need to surround yourself with the right team members to win the game.” Need a buyer’s agent to help you finally secure a place in Perth? Contact us today Already made your purchase? D Residential can provide quality property management tailored to you Find out more.