5 Key Questions To Ask From Your Property Consultant In Australia Before Investing In A Property
The current COVID-19 situation has put many investors in great trouble. Buying a house or a commercial real estate property is just planting a tree for a lifetime. As no one can predict the future yet property strategists use some reliable indicators to decide what is the best way to invest in the real estate business? Do not hesitate to ask as many questions as you can. Do not trust an unworthy investor who resists answering those questions.
In this article, you find 5 key questions you have to ask your property consultant. Always remember those questions to generate maximum profit from the investment.
1. What is their investment strategy in today’s marketplace?
The experts at property advisory firms design repeatable, safe, and realistic investment strategies to meet your requirements. Your property strategist must know about a well-positioned property that supports capital growth. Will their strategy is actionable or to get passive income?
It saves you time, as you do not have to analyze hundreds of strategies and picking up the one suitable for you.
2. What are the micro and macro factors to drive the property market?
‘’Population and Migration’’ are the two most common factors to stimulate the property market. As the Australian government sends a warm welcome to immigrants, it boosts population growth. Hence, more people will need houses to live in.
Likewise, railway lines, airports, health care facilities, educational institutes, and industrial units create jobs and boost local demands for housing. Employment is also one of the biggest factors.
3. What should be a minimum time frame for property investors to hold the property?
Many home investors leave investments after two or three years. I know it’s difficult to manage all expenses on your own, but it gives excellent outcomes. According to experienced property consultants in Australia, a minimum term of 5 to 7 years is important to generate a sufficient return on investment.
Well, the longer you hold the property, the more you will get ROI. Do not take a hasty decision and follow the advice of your property consultant.
4. How do they create a property portfolio?
Well, it is the most technical question. Everyone dreams to have a substantial portfolio by analyzing all aspects. The professional property advisors perform a detailed market analysis and study relevant risk factors to create a portfolio.
The property strategists have mortgage brokers, buyer’s agents, solicitors, property managers, tax accountants, and depreciation specialists to design an application portfolio. Usually, property portfolios include the net value of the equity.
5. Do my investment property still profitable with a low interest rate?
The property consultants in Australia believe that investment properties with low interest-rate create a positive cash flow. It does not mean that you can blindly pick up any property with a low-interest rate. Be extremely vigilant while picking up a property with a low-interest rate.
Check location, demographics, price trends, employment rate, stock level, facilities, development projects, vacancy rates, and many other parameters before investing in a property with a low interest-rate.
6. Price negotiation skills:
Although you have excellent communication skills yet sellers take advantage of less knowledge of the market value. Being unaware of the market value rates, you fix a wrong deal with sellers. As a top property agent has negotiated hundred of houses, they know all the tricks and flattery language of the sellers. They know about the driving demand of the market and choose the best price according to your requirements.