I sat down with some clients, Michael and Claire a few years ago – and yes, they are happy for me to tell their story.
They had been researching the market for a long time before being referred to my service by one of my clients. They were a time-poor, educated, professional couple with a very busy lifestyle, so making the time for our initial meeting seemed impossible.
Their focus was on building wealth through property investment using the equity in their home, and they had looked into a number of so-called ‘hotspots’, but had stalled on the actual purchase.
At our initial meeting they pretty much balked at the proposition of paying my professional service fee, after all, they had already done all the ‘research.’ After digging a little deeper it turned out that their ‘research’ was actually based on what a property spruikers had to say about a couple of suburbs and that a few properties they saw on the internet looked ‘really nice.’
None of this aligned with Prospa Property Advisory’s investment property acquisition metrics. The first area was a mining town offering great yields and nothing else; the second area was in a suburb with high unemployment and an extremely high proportion of other rental properties.
Where is Prospa Property Advisory’s value in all of this?
Firstly, we are backed by fulltime Research and Acquisitions teams. This means we have a dedicated team of professionals whose sole focus is to research the right areas to invest in around Australia, and then find the right investment properties in those areas for our clients – with a proven track record.
There is a strict methodology utilised for the selection of properties we recommend to our investors. We take into account:
- Infrastructure and planned projects in the area (great capital growth indicators);
- Demographics (focusing on incomes, employment statuses, professional status and family structures)
- Supply of similar properties in the area so oversupply is avoided (i.e. projects that are approved for construction and those pending approval)
- Low vacancy rates (it is a ‘liability property’ not an ‘investment property’ until a tenant moves in and starts paying rent!)
- Percentage of rental properties in that area (you don’t want to be competing against a large number of other landlords to secure a tenant in a limited tenant pool and in general terms, owner occupiers look after their
properties better than tenants so streetscapes will be nicer)
Secondly, all Property Strategists at Prospa Property Advisory have extensive experience in property investment. We don’t do this as a hobby, we live and breathe property.
And our clients, who were actually the catalyst for starting our 100% satisfaction guarantee? …Let’s just say that they parted with their money and after 18 months were around $45,000 better off because they took Prospa Property Advisory’s recommendation!
– Adam Hindmarch