Real estate investment

Take the Pain Out of Buying an Investment Property

Buying an investment property can be a very complex and challenging process. And it can be very stressful. However, it doesn’t need to be. Getting a buyer’s agent from Cohen Handler on your side can make it very easy. You use experts for every big decision in your life – your health, your wellness, your investments and your finances – so why not for your real estate purchase? Get an expert to help you with your purchase – we have completed 40,000 inspections and over 1800 transactions across prices ranging from $450k into the millions, we know how to buy property.

How can a Cohen Handler Buyer’s Agent help you with your investment property purchase?

1. Get access to off-market properties: All our buyer’s agents have a huge network of real estate agents in their geographic area of expertise, through these networks they are able to source and acquire properties which are not listed on any website. This immediately doubles your chances of finding the right property – approximately 60% of our client purchases in any month are off market properties. In areas as white hot as Sydney, Brisbane and Melbourne, buying off-market properties can be the only way to ensure that you’re meaningfully adding to your portfolio, or getting properties with the yield you need at a price that meets your budget.

2. Get expert advice on value and timing: Our buyer’s agents have years of experience in purchasing for our clients, and know their suburbs like the back of their hands, helping you find the best place to buy investment property. They can quickly estimate the right value of your property and guide you towards the right price for the property you seek – we will ensure that you don’t overpay for your investment, and we can also guide you on the best suburbs to pick for rental yield and capital appreciation. Whether you’re buying investment property in Sydney, Brisbane or Melbourne, we can help make your journey a success.

3. Save time, save money: An experienced buyer’s agent can help you find the right property very quickly – and then help you settle at the right price and get the deal done. Our experience with negotiation and their ability to settle pre-auction where possible means that you will get the realistic best price, which could save you several thousands of dollars – as most of our clients have done. Our average savings 7-13% (based on comparables across ~ 1700 transactions).

 

The benefits of property investment

 

Build the financial future you want. Millions of Australians of all ages rely on property investment to help them achieve the lifestyle they want for themselves and their families, and you can join them. Buying an investment property can be a great way to add a passive income stream to your life, helping you supplement the income you receive from your employment or from other investments. 

The benefits of adding investment properties to your portfolio are considerable. A secure and long-term investment, when tenanted and properly cared for it can provide stable and reliable income in the form of rent. One investment property can open the door to further expansion in your portfolio, with every bit of equity in your current home loan making it easier to take the next step in your portfolio. 

A significantly different market to other investment products, property is a great way to diversify an existing portfolio of managed funds and stocks, helping you further decentralise your income and potentially mitigate risk. 

If you’ve never considered property investment before, we’d invite you to take this opportunity. Cohen Handler provides comprehensive support for those buying investment property in Sydney, Brisbane and Melbourne. Talk to one of our buyer’s agents to learn more.

 

Common mistakes to avoid with property investment

 

Despite the stability of the market, property investment is not guaranteed income. All too frequently investors are undone by a lack of knowledge or predictable errors. These mistakes may be minor individually, but together they can compound, cutting into your profitability and negatively impacting your confidence. 

One of the most common and damaging is a lack of patience. Falling into the trap of speculative buying rather than taking the time to reap the benefit of a long-term investment can cost you dearly. Properties are hard to dispose of in a variety of market conditions, and ‘flipping’ can be more expensive than you’d otherwise think. 

Equally damaging is poor cashflow management. While you may be able to negatively gear a property and achieve significant tax benefits where your rental yield does not cover your expenses, you must still pay these expenses. Relying on lump sum payments in the form of tax returns to support your property is often not sustainable – poor cashflow has been the downfall of many investors. 

Most critically, many property investors simply fail to have any comprehensive plan at all. To be successful in property investment, you need a strategy, one more complex than ‘be successful’ or ‘make money’. Recognising the steps needed to build towards long-term goals like living entirely off of passive income is key to being a successful investor. At Cohen Handler, we can help you build the awareness needed to be a truly successful investor. You’ll partner with our experienced buyer’s agents who can help you develop a winning strategy that gives you optimal chances of success in all market conditions. There are no shortcuts to success, just a staircase you need to climb one step at a time – take the first with Cohen Handler.

 

Tips for buying investment property

 

Here are a few handy points to keep in mind wherever you are on your property journey. 

Tip one is never stop learning. Succeeding in investment property is a constant fact finding process. If you’re not taking in new information about the market, about trends and about your properties, it’s likely you’re falling behind. Don’t keep your eyes squarely focused on the short-term either. Make sure you’re reading the words of other investors and learning from their strategies to help develop your own.  

Second, consider your financing options and the resulting tax implications very carefully. Investors can take advantage of a wide range of loan products from a diverse selection of creditors, so taking the long view and doing your homework can set you up for success before you’ve even taken the keys. 

Finally, while you may always hear investors stressing the importance of buying the right property at the right price, remember that there is no singular best place to buy investment property. The right property for you will depend on your budget, your goals and the market at large. 

Don’t let a lack of certainty put you off property investing. Talk to a professional and reap the benefits of one of the most stable investments in Australia with confidence. Our number one tip for buying investment property is getting the right guidance – talk to the team at Cohen Handler and find out how you could make your next step as an investor your best yet.

 

Frequently Asked Questions

 

Is an investment property a good idea?

An investment property can provide stable, consistent passive income that can supplement the active income from your employment. If you’re looking to retire with a good standard of living or simply have financial goals above your salary, an investment property can help you achieve it. 

What deposit is required for an investment property?

Different banks will require deposits of different sizes for different properties, but as a rule of thumb being able to provide 20% of the value of the property upfront is a good idea. Not only does this reduce the amount of interest payable over the life of the loan, it also means you likely will not have to pay lenders’ mortgage insurance to the bank. 

What is the best way to buy investment property?

The best way to buy investment property is intelligently. When you’re thinking about purchasing something as big as a piece of real estate, knowing that you’re making the informed choice is vital. Partner with a buyer’s agent from Cohen Handler and enjoy the confidence that comes from working with people who know the market. 

How long should you keep an investment property?

Property investment is not day-trading – don’t expect to see the full value of your investment overnight. How long you should retain a property depends on the market, the property in question, and the economy at large, but broadly we’re working on a scale of years, not months. Speak to a Cohen Handler buyer’s agent to learn more.

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