How do we select investment properties for our clients?
When our Business Development Manager Jarryd receives an enquiry about our Property Investment services, there is one question he is always asked – almost without fail. “How do you choose the properties you recommend for investment?” The good thing is, nine times out of ten, those people that ask the question become our clients. Because it’s an important question – how else would you know we are serious and experienced about what we do – we thought we’d share with you an overview of our property selection process and how we identify, evaluate and obtain investment properties for our clients. This way, everyone can understand our process a little better and our happy clients can confirm that yes, it does work!
Because each of our client engagements start with an investment strategy session, we complete the following steps with their unique situation in mind. In the initial session, our clients set parameters for their property purchase such as price, location, size and features. So, when we conduct our research, we aren’t just using our own criteria but are also ensuring any potential properties meet the personal criteria of our clients as well.
The first stage is research. We assess the Australian property market and look at specific locations as requested by our clients to assess the potential investment opportunity of suburbs and specific areas. The things that are taken into consideration during this stage are things like the historic and projected capital growth, rental yields, median house price, housing affordability and more. This is purely a quantitative numbers game, where we seek suburbs that match our criteria based on financial and economic performance.
Once we have a few suburbs selected, we validate them using qualitative data. They have stacked up on paper but can these figures and projections be validated and justified? The criteria we consider in this stage includes things like infrastructure spending and improvement to the area, commercial performance, the quality and access of resources and amenities, the demographic projections for the area. By using this criteria we can determine the driving forces behind the numbers and confirm whether or not the potential investment opportunity will be successful in both short and long term pictures.
Once we have confirmed and selected the investment areas and suburbs, we look for properties that match our clients’ specifications that suit their individual needs. We often work with developers and builders to secure brand-new properties that can be built to the design of our clients and tailored to their preferences. In the current market this is proving to be one of the most cost-effective ways to purchase a property, so we consider both existing dwellings and house and land packages that are suitable for clients.
Once we have identified the area and the properties that meet all of the requirements, we approach the real estate agents, builders or developers and enter discussions. For a lot of our South-East Queensland properties, we already have wonderful partnerships and relationships with the real estate agents, builders and developers in the high growth areas we currently work in. So, often we are able to not just find our clients a property, but work with the people we know can deliver the quality and level of service our clients deserve to experience, making it a fantastic overall experience for our clients.
So that is how we work! It’s how we identify our properties and ensure they are the best possible opportunities for our clients, whatever their financial goals are.
If you would like to learn more about our process, then please click here.