The challenge for buyers is a long list: location, budget, property type, advice from a tax planning, entity/structure, legal and foreign buyer considerations and the list goes on. This all takes time to navigate and gets even more complicated with initiating from overseas. 

The ‘list’ can take weeks, or months, to research, understand and settle, taking up hours of precious time. The devil is in the details, which is where the skill of an experienced property professional kicks in.  

Let’s use a couple of examples that are all too common, but not often understood. 

#1: Risk Mitigation 

A deal too good to be true, likely is!  

A buyer was looking to buy a House and Land investment property in Western Australia and found a site they deemed suitable that was right on budget at $600,000.  

Property NTX evaluation:  

• Why are developers selling stock at $600K? Comparable properties in nearby suburbs are selling at $700K. 

• The location has been oversold; therefore, home values haven’t risen like surrounding suburbs.  

• There is an oversupply of available properties for rent in the immediate area. So, finding a tenant is going to be difficult.  

• The banks are reducing how much they will lend on these properties. Bank pre approval on your mortgage is no longer accurate.  

Conclusion: The location and price initially look great, but for the long-term gain there’ll be minimal growth and hurdles to overcome.  

Next steps: Let’s investigate other property areas in the same state or nationwide. 

It’s our job to understand the nuances of the market in each location and provide a full circle evaluation and recommendation for our clients to ensure they can make a holistically informed decision about their investment. 

#2: Location & Market Dynamics  

We understand location growth cycles, so you don’t have to!  

A buyer was looking to buy an investment property in Australia but couldn’t decide between Melbourne and Brisbane. They had been to Melbourne a few times on vacation and were slightly more inclined for that area as it felt more familiar.   

Property NTX evaluation:  

• We looked at capital growth potential, tenant vacancy rates, jobs, migration, property taxes, government infrastructure investment and more.  

• As we investigated, we found that: 

• Brisbane homes have seen extraordinary capital growth in the past few years, rising 50.2%* since the onset of the COVID pandemic in March 2020. With the 2032 Olympics in Brisbane, the infrastructure pipeline is creating massive job opportunities and migration for staffing.  All this drives up tenancy occupancy.  

• Over the same period Melbourne values rose 11.0%*, which is the weakest increase of any capital city market. Due to COVID debt levels in Melbourne, Victoria has implemented the heaviest taxes on property investors Australia wide.  

Conclusion: Both are amazing cities to own property in, but currently the prevailing trends on all fronts point to the Brisbane and greater South-East Queensland corridor (Gold Coast & Sunshine Coast) as the top choice. As the buyer was buying for pure investment, the numbers point towards Brisbane being a better option for growth. 

Next Steps: If the buyer is aligned with the higher growth area, Property NXT will start to pull together options on properties within the budget for the buyer to decide. 

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As independent consultants: Your Agenda is our Agenda  

While we would rather call ourselves partners than your buyer’s agent, essentially these are just some of the scenarios that we work through our clients with to help navigate a complex system.  

We also help guide you on acquiring loans, understanding the best financial or tax structures to buy in, connecting you with trusted experts based in Singapore to advise on this.  

What excites us most at Property NXT is being able to have conversations with our clients to understand their priorities. As we say, let’s “Spark the Conversation” and Let us Guide You to Your Next Property. 

*Source: Corelogic. Based on 2024 information.