How good buyer’s agents determine the best areas for property investment

The first thing to consider when before purchasing an asset is the economic profile of the area. Ask, What are the main industries that support its economy? Which of these does the community rely on the most?

Simon explained: “It might be manufacturing, it might be health education, it might be tourism, whatever it is … [consider] what's the outlook for those key industries.

“If we're having this discussion three or four years ago and we're talking about mining as one of those key industries, it might be [the] one to avoid,” he added.

Aside from asking the questions mentioned above, take time to determine the biggest employers in the location as well as their plans for the future. Ask, Will they be expanding or reducing their workforce?

According to the buyer’s agent: “At the end of the day, property is shelter … [so] it's really [important to understand] a town or a city through its economic profile.”

The demand for property as well as the supply available in a particular area are [included as] other relevant data [needed] to determine in order to know whether or not you should push through with your property purchase. Ask, What is the current vacancy rate? How quick are property transactions at the moment? What is in the supply pipeline?

Simon said: “You won't get that from driving around that city because they haven't been built yet.”

“If you're a big construction company that operates in that particular town or city and you've got hundreds of new apartments or a massive new house and land estate approved, what sort of impact is that going to have on future supply?” he added.

There’s a lot of moving parts that property investors and their financial team must keep track of so they can ensure that they are making the best decisions for the consistent growth of the property portfolio and the ultimate success of the investor.

Invest time and effort in the process of acquiring knowledge before you finalise a purchase and don’t hesitate to ask assistance from property professionals. In a field as complicated and ever-changing as property investment, the guidance and wisdom you get from buyer’s agents and other professionals are most certainly worth their weight in gold.

Tune in to Simon Pressley’s Q&A episode on The Smart Property Investment Show to know more about how to pick the right buyer’s agent to suit your own needs, how to balance your time effectively as an investor, and how confident you should be when using a buyer’s agent from another state.