If you’ve ever wondered what a buyer’s agent actually does and whether hiring one is worth it, you’re not alone. The role of a buyer’s agent has become increasingly crucial in Australia’s dynamic property market, especially as interest rates shift and new investment opportunities arise.
In this blog, we’ll break down exactly what a buyer’s agent does, how they help property investors, and whether now is the right time to jump into the market.
What is a Buyer’s Agent?
A buyer’s agent is a licensed professional who specialises in searching for, evaluating, and negotiating the purchase of property on behalf of buyers. Unlike real estate agents who work for sellers, buyer’s agents are dedicated to helping buyers secure the best deal, often uncovering off-market opportunities and providing strategic guidance tailored to individual goals.
How a Buyer’s Agent Helps Investors
A buyer’s agent does more than just find properties. They conduct in-depth market research, assess investment potential, negotiate pricing, and provide due diligence to ensure clients make informed decisions.
For example, at Aus Property Professionals, we use advanced tools like IP data to identify viable properties, ensuring they meet investment criteria and are legally eligible for direct contact. This allows us to strategically target opportunities in high-growth areas.
Market Timing: Should You Buy Now?
With interest rates fluctuating in 2025, many investors are asking whether now is the right time to enter the market. While waiting for rates to drop may seem logical, seasoned investors know that there is always an opportunity to buy.
Historically, markets tend to move once interest rates begin to decline. However, even with high rates, bullish markets like Perth and parts of Queensland continue to thrive due to strong infrastructure investment, population growth, and future events like the Brisbane 2032 Olympics.
In contrast, Melbourne’s market has been impacted by recent government policy changes, particularly a reduction in the land tax threshold from $300,000 to $50,000. This shift has made property investment less attractive in Victoria compared to states like Queensland, where the land tax threshold remains at $1,040,000.
Despite these challenges, Melbourne remains a historically strong market, and with a potential government shift on the horizon, conditions may soon improve.
Choosing the Right Investment Location
A skilled buyer’s agent doesn’t just look at market trends; they assess which suburbs are primed for growth and where the best deals can be found. In our experience, markets like Brisbane, Perth, and Adelaide are currently outperforming Melbourne, offering higher rental yields and strong capital growth potential.
For example, Melbourne traditionally had the second-lowest rental yield after Sydney, averaging around 3.3%. However, recent market shifts have pushed this closer to 3.8%. While this represents an improvement, it still falls short compared to other capital cities.
The Power of Case Studies: Learning from Real Investors
One of the most effective ways to understand property investment is through real-life case studies. In my latest book, I highlight the journeys of everyday investors who have successfully built their portfolios, often starting with lower deposits and strategically growing their wealth.
These stories provide valuable insights into how buyers navigate the property market, secure financing, and scale their investments. If you’re looking for inspiration or a roadmap to success, this book is an essential read.
Evaluating Investment Deals: Real-World Examples
To illustrate how a buyer’s agent assesses potential investments, let’s examine three recent property deals and their investment potential.
- 605 Wilson Street, Ballarat East (VIC)
- Listed price: $650,000 – $690,000
- Land size: 1,887m²
- Estimated rental yield: 2.5%
While the large block size suggests subdivision potential, the low yield and regional location make it less attractive for investors seeking immediate returns.
- 4 Toronto Avenue, Dapto (NSW)
- Listed price: Undisclosed
- Land size: 633m²
- Estimated rental yield: 4% ($620 per week)
Dapto’s proximity to Sydney makes it an appealing growth area. With strong rental returns and potential for value-adding renovations or a granny flat addition, this property stands out as a solid investment.
- 11 Whitehead Close, Kearns (NSW)
- Listed price: $900,000 – $950,000
- Rental yield: 4% ($700 per week)
While Kearns is a growth suburb, the price point suggests better opportunities may exist in capital cities like Brisbane, Melbourne, or Adelaide, depending on the investor’s strategy.
Value-Adding Strategies for Investors
A key strategy buyer’s agents implement is value-adding through renovations or development. For example, a property with a sizeable backyard could accommodate a granny flat, increasing rental income. Other tactics include cosmetic renovations, kitchen upgrades, and landscaping to boost property value and cash flow.
Should You Use a Buyer’s Agent?
If you want to build a successful property portfolio, working with a buyer’s agent can save you time, money, and stress. They provide market expertise, off-market opportunities, and strategic investment advice tailored to your financial goals.
Final Thoughts
So, what does a buyer’s agent actually do? They act as your guide, strategist, and negotiator, helping you navigate the complex property market with confidence. Whether you’re a first-time investor or looking to expand your portfolio, leveraging a buyer’s agent’s expertise can make all the difference.
🎙️ This blog is derived from the ‘Positively Geared’ podcast episode: “What Does a Buyer’s Agent Actually Do?”. You can listen to the full episode on spotify here: https://open.spotify.com/episode/5baXcJJcx9Fg3aPyUf7Tho for further insights and details.
🎥 Prefer VIDEO format over a PODCAST? We’ve got you covered! Click this link here to go to our YouTube channel to view the live video version of the podcast, make sure to like and subscribe to not miss out on further episodes while you’re there!
