Avoid Buying a Property Sight Unseen – Consult a Property Manager Before Making an Offer:
Investing in the property market is gaining popularity, especially among East Coast investors who are making the most of opportunities here in the West. However, a real problem that we’re seeing is the unrealistic rent expectations from some investors who, in numerous cases, have purchased the property sight unseen, relying solely on the sales agent for information about the suburb and potential rental income.
There’s also a common expectation that properties will be tenanted quickly after being advertised, yet by setting the rent too high, this can lead to prolonged vacancies. As with other cities in Australia, Perth is experiencing a rental crisis, however it’s important to recognise that tenants won’t apply for properties that are overpriced or are unaffordable.
If you are in the market to purchase an investment property and are unable to view it yourself, consider engaging a Property Manager to do the legwork for you. A Property Manager will give you honest feedback on the amount of rent you can expect to achieve, the type of tenants the area will attract, and will provide recommendations on whether the property meets legislative requirements for tenants and any other work that’s needed. A Sales Agent may provide you with advice, however in most cases they are not experienced when it comes to residential tenancies and, is working on behalf of the seller – not the buyer!
Before committing to a purchase, be thorough in your research. Be a savvy property investor by talking to the right people who understand the rental market and who will give you the right advice. Investing in property is a big decision and commitment that if done properly, will avoid unnecessary stress and provide financial security for your future.
In conclusion, navigating the property market requires careful consideration, especially when it comes to investment decisions. The pitfalls of purchasing a property sight unseen, coupled with unrealistic rent expectations, is evidence of the need for a strategic approach. Engaging a Property Manager is a wise step, as they can offer valuable insights, from expected rental yields to the suitability of the property for tenants. Unlike Sales Agents, Property Managers focus on your interests and will guide you through legislative requirements and any necessary property adjustments.
