In some cases you will be undertaking the role of advisor because you have access to properties for sale. At other times, you will remain independent of the actual purchase. If this is the case, you may decide to assist your client in their search for potential properties to meet their criteria.
There are a number of methods to use to search for potential possibilities. These include:
- Using recognised internet sites such as www.domain.com.au,
- Visiting property premises when they are open for inspection; and
- Attending auctions in the area of interest.
In your background research you can work with a licensed estate agent who will have a thorough knowledge of what is available within their geographic area and who should be willing to pass this information on to the investment advisor.
In Module Two, Topic Two, we discussed the importance of researching, collecting and analysing data, and where you will find relevant information. You should revisit those topics to reacquaint yourself with how to research the market. Your objective is to help the investor make a profit and this may entail understanding the pattern of capital growth in a specific location and, in particular, the growth performance of properties similar to those to be considered for purchase. You may be able to find this information from local real estate agents, but you may be better served through regulatory bodies such as the Real Estate Institute in your state or territory or the Valuer General’s Department.