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Work with a commercial property
buyer’s agency to avoid negative gearing
Discover how working with real estate professionals can help you avoid the financial pitfalls of commercial property investing.
Why avoiding negative gearing is important
As a commercial property investor, no one would like to earn less than what they are putting into their investment property. Unfortunately, this scenario is not uncommon among many investors who fall into the financial traps of the commercial real estate market.
Negative gearing occurs when the investor is paying more to finance and maintain the property they are investing in than the income they gain from their property rental. As negative gearing means that investors are unable to offset the amount of money they are putting into their property, it can be financially detrimental to the investor. Between 2021-2022, it had been revealed that 1.1 million investors had negatively geared properties.
To avoid this financial pitfall, commercial property investors, whether new or experienced, should turn to a commercial property buyer’s agency for advice and assistance in their commercial property endeavours. With their help, investors can depend on and learn from experts in the real estate sector on how to navigate the constantly changing real estate market and boost their investment acumen to create a financially stable investment.
Let’s explore the different ways a property buyer’s agency can help investors avoid negative gearing in their property investment pursuit
How a property buyer’s agency helps investors avoid negative gearing
1. They help with your property selection
Buyer’s agents assess various properties based on factors such as location, property type, size, condition, and potential for capital appreciation. They evaluate rental yields relative to purchase price and ongoing expenses to ensure properties are cashflow positive or have the potential to become so. They also consider factors that can influence rental demand and property values.
2. They help negotiate complex contracts
Buyer’s agents leverage market knowledge and negotiation skills to secure favourable purchase prices and terms on behalf of investors. They also conduct thorough due diligence to identify any property issues that can be used as negotiation points to lower the purchase price or request concessions. They negotiate with multiple parties to optimise the financial outcomes for investors.
3. They help with property improvement
Buyer’s agents conduct property inspections and assessments to identify opportunities for value-adding improvements, such as renovations, upgrades, or conversions. They also provide advice on cost-effective improvements that can increase rental yields, attract higher-quality tenants, and enhance the property’s resale value. They also ensure compliance with relevant regulations.
4. They help with portfolio diversification
Buyer’s agents advise on diversifying property portfolios across different geographical locations, property types, and market segments. They balance the portfolio of investors with a mix of high-yield, low-risk properties and properties with the potential for higher capital growth to optimise overall returns and mitigate risks. They help minimise exposure to market fluctuations.
Why work with Unikorn?
At Unikorn, we are dedicated to assisting new and experienced commercial property investors in building a profitable, cashflow-positive commercial property portfolio. Our experts will guide you through every step of your investment journey, eliminating confusion and aiding in wealth growth.
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FAQs
A commercial property buyer's agency specialises in identifying properties with strong rental yields and potential for positive cash flow. They conduct thorough market analysis, assist in property selection, negotiate favourable purchase prices, and provide tax planning advice to optimise your investment returns and minimise the risk of negative gearing.
Helen Tarrant, a property expert with more than 10 years of experience will show you the ropes to making educated decisions in commercial property investing.
Book a strategy session with us, today! Click here