Property investment is a popular strategy to build wealth in Australia, with many investors relying on research to identify good opportunities in the market. 

With 15,000 suburbs and 80,000 properties for sale at any given time, it can be challenging to know where to start.

In this blog post, we will explore the property investing research that a buyers’ agent does to give you an edge in building a successful property portfolio.

A buyer’s agent has intimate knowledge of the market, this knowledge is constantly maturing with the market. Buyers’ Agents are at the forefront of the market, witnessing changes firsthand which allows them to identify opportunities that are below market value. 

Here are four property investing research tips that a buyers’ agent uses to identify great investment opportunities regardless of the budget.

Tip 1: The Ripple Effect

The Ripple Effect is a trend that can be observed when buyers overflow from one suburb to the next because it offers more value for money.

A good buyers’ agent can identify a cluster of suburbs with a certain median price and pinpoint a specific suburb that is relatively cheaper. This allows investors to position themselves in the market ahead of the curve and take advantage of the rising demand.

Tip 2: Days on the Market

In a booming market, properties sell fast, and in a slow market, properties take longer to sell.

A good buyers’ agent can identify specific suburbs where the days on the market are trending downwards, indicating more and more buyers are paying attention to that specific market.

This trend can be tracked on a month-to-month basis and is key to finding good opportunities.

Tip 3: Average Vendor Discounting

In a booming market, vendors don’t discount their asking price because there are plenty of buyers. In a slower market, they might have to discount to get the property sold without sitting on the market for too long.

A good buyers’ agent can guide you on what you should pay for a property without risking over-capitalising your acquisition. The lower the average vendor discounting, the hotter the market is.

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Tip 4: Supply-to-Demand Ratio

Finding a suburb where the demand outweighs supply is a no-brainer.

A good buyers’ agent can identify where there could be future undersupply of properties in a specific market and position you there ahead of the curve.

This can only be achieved by having access to good data and relationships with real estate agents across different markets who can feed back updates every week.

Finding the right property is only 20% to 30% of the equation. Support and guidance are also essential, from structuring your finance, and reviewing pest/building reports, to introduction to property managers and other relevant service providers. 

In conclusion, property investing research is valuable for those interested in building wealth through property. A buyers’ agent is an expert in identifying trends and opportunities that can offer an edge in the market. By leveraging buyers’ agent’s expertise, you can make informed decisions and build a successful property portfolio.

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