Being a real estate investor in Australia is a highly lucrative business that can give you a steady stream of passive income if you do it well. Still, what it does it really take to become a real estate investor? Furthermore, should a real estate investor get a real estate license? Investing in property itself is already a big investment without the additional training required to get a license. In fact, do real estate investors need a license at all? You may have heard that investors with a license in real estate have the upper hand to make substantially more money in the housing market, so let’s look at how many advantages this license actually gives you as an investor:
First of all, a real estate license for investors is a bit like having a “golden ticket” that lets you access a wealth of inside information that the average person isn’t privy to. For example, you can receive notifications of the best property deals, sometimes before they’re even officially up for sale. Because it’s standard practice that most listing deals are official before a home hits the market, you’ll be in the loop to spot great residences and make an irresistible offer before the competition finds out. Fast updates on the status of other offers is essential in the city because deals can fall through within minutes, so your perfect property could suddenly reappear for sale again at a moment’s notice. Only the first to step in with the right offer will win. In general, having a license also lets you view critical data like expired listings and other “handyman specials” that you can easily negotiate to buy at lower prices.
Secondly, an education in the practices of real estate and property financing will give you the necessary background to understand when you have a great investment opportunity in front of you or not. You can understand when the “guide price” is irrelevant because you’ll be able to accurately calculate how much a residence is really worth and make smarter offers. Since your education in real estate helps you learn what to watch out for, you’ll understand how to watch the pulse of the market. Therefore, knowing how much similar homes in that neighbourhood sold for and how quickly will serve to help you avoid making unnecessarily high offers. Researching where the government has set up regeneration schemes helps you target property areas that will have sudden increases in value. Then you’ll know where to buy up residences at modest prices so that you can cash out big in a few short years.
Knowing all the legal proceedings involved in home buying and especially how to get the best mortgages can save you thousands of pounds and make your offer more enticing to the sellers. Your experience with being prepared by getting a mortgage ahead of time, which can save you a month of waiting, is very attractive to those who are trying to sell quickly. Your knowledge about what you need to demonstrate proof of funds, having the right solicitor and surveyor will also greatly speed up the sale. Plus, you’ll know how to save on homeowner’s insurance and which policies are the best for properties in your area.
Best of all, you have no middle man’s pockets to fill either since you can act on your own behalf as the dealer, so you don’t have to pay extra commission fees.
As a licensed estate agent, you have inside access to see virtually any properties you want at almost any time. You can even be the first one to give a valuation on a home when a prospective seller reaches out, which puts you in the prime position to make negotiations on most-wanted residences early.
Here’s the bottom line: If you’re really serious about knowing how to become a successful real estate investor, then you should definitely get your license as an official estate agent to make the right contacts.
Tag:investing