As uncertainty in the property market in Australia continues, it can be hard to know where to start your property search and what’s worth spending time on. If you’ve been an investor for a while, you’ve likely got some great contacts in the industry who keep you updated on the market and potential new investments. This is where you can greatly benefit from the growing trend of off-market property sales throughout Australia.
According to the McGrath Estate Agents’ 2017 McGrath Report, John McGrath found that off-market property sales were increasing in all price brackets. And while one of the main motivators of off-market sales is privacy for wealthy sellers and buyers, there are some great benefits of buying off-market for property investors as well.
One of the biggest benefits of buying a property off-market is the opportunity to get a better price. Without the need for a marketing and advertising budget, there’s usually more room to negotiate on price which could pay great dividends for your portfolio. With fewer people seeing the property than in a traditional sale, you’ll also have the opportunity to take more time with your due diligence than if you were competing with several other buyers in the crowded market.
If you haven’t been exposed to off-market property, the best way to access this market is by building relationships with real estate agents in your ideal markets. Make sure you’re upfront about price, your property and location criteria, and what kind of terms you like to negotiate in each property purchase. This will ensure the agent gets in touch only when a property
matches your criteria as closely as possible. If you leave yourself too open to all options, or you’re not specific with your criteria, you could end up wasting each other’s time.
Another way to expand your property search is by signing up to a platform such as Property Whispers. This platform was built specifically for buyers who were missing out in the crowded auction market and sellers who didn’t know if a traditional marketing and advertising campaign would meet their needs.
Of course, there are other ways to tap into Australia’s off-market property with Australia’s wider property network. This could come in the form of signing up for some property investor networking groups, conferences and workshops.
As with any strategy in your property portfolio, it’s important not to put all your eggs in one basket, but instead, simply leverage off-market property as another way to evaluate additions to your portfolio.