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Analyse, Diversify, Achieve

Analyse, Diversify, Achieve
December 4, 2019 Propertyology

When it comes to property investment, there should be little room for emotion.

That’s certainly the approach 41-year-old Rish took when he looked to branch away from share investment and take the plunge into Australian real estate.

As an expat IT professional, Rish likes to apply a textbook approach to his analytical forward-thinking.

Now Singapore-based with his wife and three-year-old, Rish said he’s excited about setting the financial foundations for his return to Australian shores.

“I still call Australia home. At some point, we’ll come back. The question is, what do I do now to create a source of income through real estate for that point in time?”

Rish is no novice to wealth building. He readily admits his studious approach, coupled with being “in the right place at the right time,” had already resulted in some solid net worth via shares.

“As I think about my future planning, I started thinking about what a good diversification strategy would look like. Australian real estate has always been known to provide that sort of diversification.”

“So, I was working out how to take some of the gains I’d made in the stock market and diversifying those into Australian real estate.”

Rish said, while he found it relatively easy to research a wide range of available stock market options, choosing real estate across Australia’s vast landscape was tough, so he needed to rely on expert help.

“I was trying to understand the concept of buyers’ agents in Australia – the different types of them – and Propertyology fit perfectly with what I was looking for.”

“I knew that I could get property reports through CoreLogic and others, but a lot of that is hindsight rather than futuristic. Plus, I live in Singapore and given the vast number of properties you can purchase in different suburbs in Australia, so there was no easy mechanism for me to really go and tease out a specific area or a specific property.”

“Also, because I’m in Singapore, I wanted to find someone who could offer me end-to-end service in terms of negotiating, purchase and in terms of finding me a property manager and so on, so that I don’t have to make trips to Australia to fill out my real estate portfolio.”

But Rish took his filtering process a bit further than most. He decided on a ‘try before I buy’, when it came to selecting the best advisor for the long-term.

After have a close look at several buyer’s agency firms, Rish reduced his shortlisted to two candidates –a Sydney-based buyers’ agent and Propertyology.

“As a first step, I went ahead and purchased a property with each business to really understand the process. The intent was always, depending on the experience, that I would go ahead and purchase a few more with the firm that fitted my criteria better. That ended up being Propertyology,” he said.

“We instantly talked the same language.”

He said Propertyology’s abilities to look beyond a limited area really sold him on their service.

“The big difference that I found is most buyers’ agents have a list of just two or three locations that they’ve pre-identified. It is not a vast number of areas and they typically rotate from one to the next of those same areas.”

Rish said the Sydney-based agent only had three locations they’d invest in.

“They only looked at Sydney, Melbourne and Brisbane and a small radius within that.”

“That’s not a very comprehensive search from such a large country. And it’s not as though they’re refreshing their research on an ongoing basis either.”

“What I found with Simon’s team [at Propertyology] is that they do cast the net wide in terms of looking for locations.”

Rish’s portfolio now includes property holdings in Queensland, Tasmania, as well as regional Victoria, all purchased with the assistance of the team at Propertyology.

Rish also felt Propertyology’s approach to price point was sound.

Analyse Diversify Achieve - Your Results - Rish

“Each purchase was between $350,000 and $450,000. One of the reasons the price point was so important to me was the stock market philosophy which says I might hope to be 100 per cent right in my particular research around a stock, but I’m better off splitting the money across three or four different stocks for diversifying.”

“That aligns with Simon’s philosophy, too. Instead of putting it all into one property or one location, I diversify it.”

Rish said his long-term goals involve moving 30 per cent of his overall asset base to Australian real estate by buying one property every three months or so.

“Ideally, I want to get to a point where the yield on my properties will give me enough income to service my financial needs, while the investments in stocks will just be about capital appreciation, and cash will be for any short-term requirements.”

Rish said Propertyolgy has been an excellent partner achieving his aims.

“They really understand what’s happening in Australia and what the long-term growth drivers are – such as tourism, mining, education, agriculture, government infrastructure spending, etc.”

Rish said he appreciated Propertyology’s methodology in studying these drivers and which areas are set to benefit from their positive influence.

“I love how they quantify their research with the data around investment decisions – looking at the local economy, demographics, population and various other factors and then homing in and saying, ‘…this suburb potentially has a higher chance of capital return relative to other suburbs.”

Referring to Propertyology’s post-settlement service wherein they provide ongoing market updates, Rish said “…I don’t have enough time and money to invest in all those research tools, but they give me regular updates on what those locations are doing and what’s changing. It is a huge help.”

Rish says there were other key points of difference that elevated Propertyology above other buyers agencies.

“They’re a buyer’s agent with no conflict of interest and with data driven research that identifies opportunities that need to meet a certain set of criteria around market outlook, yield and level of investment etc.”

“They then tie in that particular process with their execution engine. They go and visit the location, they speak to local council, and so on. Then Bryan (Loughnan) will go and execute on that as a buyer’s agent. Then they have a back office that takes care of everything else with Mandie (Young).”

“That made it a seamless process for me. It’s a well-oiled machine where they all know what role they’re playing… I really enjoyed that,” said Rish.

“If I look at the brand promise of Propertyology, I have an implicit trust that they’re going to secure me the best property for the best price. In all of my dealings with them, I never got any sense that they were not living up to my expectations.”

Related article: Commitment to excellence and client best interests

Rish was also very comfortable having Propertyology deal with his needs while being overseas.

“The initial process had me sign an authority and so some of the steps didn’t require my involvement. It was mostly via email and, if it was urgent, I could just call.”

“The key for me was that purchasing a share stock I can do in two seconds on my hand-held device. But purchasing a property involves a very lengthy and onerous process. What Propertyolgy has done for me made that not to be an onerous and lengthy process.”

Rish now recommends the Propertyology team to others.

“I have a lot of friends in Australia who are in the same boat as I am. They can’t know research like Propertyology does, and everyone is time poor. The price point is about right. So, yes, I do recommend them… I talk about them all the time.”

Propertyology is Australia’s premier property market analyst and award-winning buyer’s agency. Every capital city, every non-capital city, we analyse fundamentals in every market, every day. We use this valuable research to help everyday Aussies to invest in strategically-chosen locations (literally) all over Australia. Like to know more? Contact us here.

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