Why investors are the best clients for buyer’s agents
5 good reasons for buyer’s agents to target property investors
Property investors are great clients for buyer’s agents for a range of reasons:
1. Property investors are among Australia’s wealthiest
Many savvy property investors in Australia have become very wealthy via their real estate investments. Australian property prices have a long-term track record of growth, especially in Australia’s major capital cities.
Wealthy property investors are more likely to be on the lookout for new investment opportunities, especially with Australia’s current rental supply crisis. They may also be looking to diversify their property portfolios by buying different types of properties or buying in different states or markets. To do that effectively, they need buyer’s agents with well-connected networks.
2. More and more Australians are becoming property investors
According to the latest figures from the Australian Taxation Office (ATO), more than 2.2 million Australians own at least one investment property, and the number is growing year on year. It is a proven wealth-creation strategy with associated tax benefits.
Many lenders are prepared to finance up to 80% of the value of an investment property, so the barriers to entry are low given that property investors can use the rental income they generate for their loan repayments.
3. Many property investors build multi-property portfolios
Significantly, the latest ATO figures also reveal that more than 600,000 Australian investors own two or more rental properties. These property investors will use the services of a buyer’s agent more regularly than most owner-occupiers. They can become lucrative long-term clients for property buying agents.
4. They are a great source for referrals.
Property investors are interested in property for its wealth-generating potential, which means they are likely to tell their friends and family about their investments. These conversations can be a great source of referral business for buyer’s agents.
5. Property investors aren’t as emotional as owner-occupiers
Finding a good opportunity for any property investor means finding one where the ROI numbers and potential stack up. The property could be anywhere.
Finding the right property for an owner-occupier, on the other hand, involves locating one that satisfies their emotional needs and wants, which can vary significantly from one buyer to another. Properties also invariably have to be in specific geographic areas for owner-occupier buyers, such as close to where they work or where their children go to school.
You will inevitably have a larger pool of properties available for property investor clients if you’re a well-connected buyer’s agent, giving you more income opportunities.
How good buyer’s agents help property investors
Good buyer’s agents can help their property investor clients in a range of ways:
- They have established networks across Australia
This helps them to identify the best opportunities for their clients as soon as they become available, wherever they may be. That’s crucial because good opportunities don’t stay on the market for long in Australia’s highly competitive and fast-moving real estate market.
Good buyer’s agents and their networks are also aware of off-market opportunities and can give their clients a heads-up before those properties ever hit the market.
- They have the time, knowledge and contacts that most property investors don’t
Buyer’s agents and their professional networks can save property investors a lot of time by researching and inspecting properties across Australia on their behalf. That’s what they do for a living, and it’s time-consuming for investors to be effective property finders on their own.
In addition, most property investors only know one or two markets well. Investors who use experienced buyer’s agents can leverage their agent’s expertise to invest with confidence in new opportunities in less familiar but potentially more lucrative markets in different cities or regions.
- Buyer’s agents work out investment strategies with their clients
Different property investors can have different needs and goals, whether it be maximising capital growth potential, maximising rental income, or a combination of both.
Good buyer’s agents work out appropriate investment strategies for their clients. They then use their networks to locate A-grade buying opportunities that will help their clients achieve their goals. They also have the expertise to negotiate the best possible prices and contractual conditions on the investor’s behalf.
How I can help
If you’re a real estate agent or a property manager, have you ever thought about honing your skills to become a buyer’s agent?
I started my own successful property investment agency over a decade ago. I now offer buyer’s agent courses for real estate professionals looking to make the transition to becoming buyer agents for property investors.
Contact me today to find out more!