What kind of investor uses a buyer’s agent?
There is no one-size-fits-all to investing. However, certain determinants influence an investor’s tendency to want to opt for a buyer’s agent.
By analysing a total of 626 responses, InvestorKit partnered with Smart Property Investment and Agile Market Intelligence to produce the Buying with Confidence report. This release drafts a portfolio-building blueprint by drawing lessons from hundreds of Aussies’ investment journeys.
Property ownership, gender, age and income have been found to drive investors towards certain purchasing strategies.
The study found that most single-property investors start as DIY investors. However, as they grow their portfolio, they shift to seeking full-service and local buyer’s agents to grow their assets.
Specifically, 43 per cent of first-time investors opted to go solo, 34 per cent tapped a local buyer’s agent, and 23 per cent went for a full-service buyer’s agent’s services.
This then changes as they mature in the field. Investors owning two to three properties are already strongly polarised towards working with full-service buyer’s agents, with six in 10 sharing they are currently using one in their investment journey.
Gender-wise, a huge disparity remains in property ownership, with two in three respondents being males and only one in three being females.
Another notable finding has to do with their choice of wealth-building strategy. Female investors are more inclined to go solo than men. Specifically, seven in 10 women (103 of 149) shared they are currently DIY investors, as opposed to six in 10 men (165 of 280).
When it comes to using full-service buyer’s agents, the statistics are three in 10 men and two in 10 in women. Meanwhile, an almost equal fraction tapped local buyer’s agents.
Income likewise comes as a strong factor in their inclination towards a specific game plan. For instance, among individuals earning 180,000 and over, tapping full-service buyer’s agents was the most popular choice at a usage rate of 38 per cent.
Meanwhile, twenty-four per cent used a local buyer’s agent, while the remaining 32 per cent opted to go solo.
It doesn’t come as a surprise that age also plays a role in their inclination towards a certain game plan.
According to the survey, the youngest investors are twice as likely to use a full-service buyer’s agent than grow their portfolio on their own. This tendency is in stark contrast with the oldest cohort, who are significantly 500 per cent more inclined to go the independent route.
The majority of investors are between 40 and 49 years old. Within this cohort, equal segments utilise local and full-service buyer’s agents at 34 per cent each. This number shows that Australia’s largest investor cohort by age is 1.2 times more inclined to tap the service of experts than be on their own.
The report confirms how Australia’s property investment landscape is a composite of multigenerational, multiincome individuals at different points in their investment journeys.
While going solo is generally a pronounced trend for newbies, those with more experience tend to gravitate towards arming themselves with the tools readily made available by buyer’s agents.
InvestorKit helps you work like a pro by leaving most of the heavy lifting to a team of experienced buyer’s agents.
Download the Buying with Confidence report and see how we can help!