Tuesday, 19th April 2016
You've decided to invest in Australian real estate, but where are you going to find a property?
If you listen to the media, you may think the only way to get to the front of the line for a new development is to enter a ballot, pay an upfront fee or be a first home buyer. These tales of scarcity and acts of desperation may leave you thinking there's not much point, but there really is another way…
Property portfolio specialists such as myself have a direct link to developers. This works in much the same way as any regular business wholesaler - the developers have products to sell and they know portfolio specialists have qualified clients ready and waiting to buy.
The fact is that usually property developers have to get a certain number of sales over the line before they go ahead. This form of capital raising and it's structured so that the best deals are available in the opening stages. It's at this point, I'm contacted with the development details, price and buyers' incentives.
Now if you're one of my clients and I'm actively looking for a property for you, I'll check the development to see if it matches your needs. If it comes close, but doesn't exactly match, I'll contact you and tell you about it - is it worth changing your area of interest to get a better deal?
Otherwise I'll see if the development matches anyone else on my list or someone who might be looking to add to their portfolio, especially when the macro and micro indicators line up with their existing investment objectives.
By the time the property development is released on to the market, the best options have already been sold, regarding size and value for money, best position/direction, and the developer's incentives may no longer avaliable. Wouldn't you prefer to get on at the ground level?
Until next time,