Many people have the means and drive to buy an investment property that will bring them long term, solid capital growth. However not knowing where to start, especially living a long way from solid growth areas, can stop them in their tracks.
Historically, the rule of thumb when buying an investment property was “buy where and what you know” and indeed following a get rich, new development scheme to Queensland or other exotic areas are not recommended, but what if “what and where you know” is either overseas or in an area where capital growth is minimal?
The answer is to diversify by reaching out to the professionals.
Just like you employ a local Real Estate Agent when selling your property it would be equally wise to employ a local Buyer’s Agent when buying.
Not only do they know the areas well – which side of the street is better than the other, what buildings have had water problems and which are a solid build etc. - as they live and breathe the property market, they should know how to get the most out of it.
Most Buyers Agents charge around 2% (+GST) of the sale price which may initially seem high but better to pay a one off 2% fee than lose anywhere as much as an accumulative 7% per annum on missed capital growth over decades.
At Empire, many of our clients live interstate or overseas – some know Sydney well and some don’t. However, with the plethora of modern technology at our fingertips, such as Skype, facetime, emails and good old fashioned telephone conversations, keeping the flow of communication open is easy.
Often “absent” clients find purchasing an investment property less stressful and sometimes more successful than those who are deeply involved. Being “out of town” means people depend on the professional opinions of their Buyers Agent, Valuer, Strata Manager, Mortgage Broker and so forth which keeps the emotion at bay and facts and figures at the forefront of the process.
So don’t let distance stop you from putting your toe in a healthy property market and start building your property empire.