Just how stressful is buying a property in Australia?
As Australia’s property investment landscape grows more complex, it becomes worthwhile to gauge how stressful it can get in the business and assess if you are up for the challenge.
With this in mind, InvestorKit partnered with Smart Property Investment and Agile Market Intelligence to gather insights from hundreds of Aussie investors and sewed them together into the Buying with Confidence report. Interviewing more than 600 novice and seasoned investors, the report provides an inventory of the considerations prospective buyers must know before expanding their portfolio.
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When asked whether purchasing a property was easy, Aussie investors noted that it was generally a piece of cake, with a little more than one in two respondents sharing the same sentiment. Meanwhile, 36 per cent were neutral when asked how they felt about the process, and 10 per cent said it was difficult.
However, when we dove deeper into the statistics, the study found that this view wasn’t homogenous across all types of investors.
While 54 per cent noted the property purchase as easy overall, this number was skewed to the right by those using full-service buyer’s agents.
Specifically, the investment journeys of those who use full-service buyer’s agents were significantly more smooth sailing. This was also the only cohort where the majority of respondents shared they did not find asset acquisition difficult.
Those who commissioned full-service buyer’s agents were up to 1.5 times more at ease throughout the entire process as compared to their counterparts, and an astounding 68 per cent of this cohort shared that buying their property was generally easy. Only 23 per cent were neutral about the process, while only 9 per cent said it was difficult.
Having a professional cover all bases of the investment process, from market research to wrapping up the entire deal, likely plays a significant role in this high level of ease and satisfaction.
Unsurprisingly, the largest share of respondents who found purchasing a property difficult was from DIY investors. Still, 49 per cent of this cohort shared that purchasing a property was easy, and a roughly equal share of respondents said they felt neutral about the process.
Another notable insight was how DIY investors and those who used a local buyer’s agent had somewhat similar levels of difficulty when buying their property. Forty-six per cent of the latter shared it was generally easy, while 44 per cent maintained that it was neither easy nor difficult.
These numbers reveal the disparity between the level of ease felt by investors who do and do not use full-service buyer’s agents.
Through this research, we peel the onion on the different costs of property investing. As all investors are unique, novice and seasoned investors can choose which prices they are willing to pay.
At the minimum, it’s a choice between a smooth sailing journey and one without agent fees.
Don’t let the stressors get you down. Read our Buying with Confidence report and learn how buyer’s agencies like InvestorKit can ease your worries so you can focus on building your investment portfolio.