Why We Select Only 2 Out of 20 Properties as Quality Buys: Insights from Brisbane Buyers Agents

In the dynamic Brisbane property market, discerning buyers often wonder why only a small fraction of available properties are deemed quality buys. At UBA we have a meticulous process for selecting the right investment opportunities for our clients, and over the last 12 months, on average, we are only deeming 2 out of the 20 properties we view to be quality investment opportunities.

Our selection process begins with a rigorous evaluation of each property. We consider a multitude of factors, including location, property condition, market trends, and future growth potential. Each property is scrutinised against our experienced checklist to ensure it meets the criteria for a sound investment. This thorough vetting process means that only the best properties make the cut.

How we determine a good opportunity:

1. Location, Location, Location

   One of the most critical factors in our selection process is location. We prioritise properties in areas with strong growth potential, good infrastructure, and desirable amenities. Proximity to schools, public transport, shopping centres, and recreational facilities are all taken into account. Properties in prime locations not only offer a better lifestyle but also promise higher returns on investment.

2. Property Condition and Potential

   The condition of the property is another crucial factor. We look for properties that are well-maintained and require minimal repairs. However, we also consider properties with renovation potential, where strategic improvements can significantly increase the property’s value. Our goal is to find properties that are either move-in ready or have the potential to become exceptional with the right enhancements.

3. Future Growth Potential

   We focus on properties with strong future growth potential. This involves analysing market trends, upcoming infrastructure projects, and economic factors that could influence property values. By selecting properties in areas poised for growth, we ensure that our client’s investments will yield substantial returns over time.

Once we find a property, we then need to determine a good deal:

Market Value and Pricing

We carefully analyse the market value and pricing of each property. Overpriced properties are immediately ruled out, as we aim to secure the best deals for our clients. We look for properties that are priced competitively and offer good value for money. Our extensive market knowledge allows us to identify properties that are likely to appreciate in value, ensuring a profitable investment for our clients.

Property Due Diligence

Before recommending a property, we conduct comprehensive due diligence. This includes thorough inspections, title searches, and reviewing any potential red flags. We ensure that every aspect of the property is examined, so our clients can make informed decisions with confidence. Our meticulous approach minimises risks and maximises the potential for a successful investment.

Finally, we undergo our Risk Management process for each property, the final hurdle for them to pass:

Risk management is a cornerstone of our property selection process. We understand that every investment carries some level of risk, and our goal is to mitigate these risks as much as possible. Here’s how we do it:

• Market Analysis: We continuously monitor market trends and economic indicators to anticipate potential risks. This proactive approach helps us avoid properties in declining markets or areas with uncertain futures.
• Thorough Inspections: We conduct detailed property inspections to identify any structural issues, maintenance needs, or potential hazards. This ensures that our clients are fully aware of the property’s condition before making a purchase.
• Financial Assessment: We perform comprehensive financial assessments to ensure that the property is a sound investment. This includes evaluating rental yields, potential for capital growth, and overall return on investment.
• Legal Due Diligence: We review all legal documents, including title deeds, zoning regulations, and any existing liens or encumbrances. This helps us identify and address any legal risks associated with the property.
• Contingency Planning: We develop contingency plans for each property to address potential risks. This includes strategies for dealing with market downturns, unexpected repairs, or changes in rental demand.

By incorporating these risk management strategies, we ensure that our client’s investments are as secure and profitable as possible.

While the quality homes that we would buy as investments may be small, just remember you only need 1, at a time. There are always great opportunities, and they don’t need to feel like a needle in a haystack. When you have a clear selection process, finding the right investment simply becomes a numbers game…