Using an Investment Agency vs Investing Alone

Market Insight

Investment agencies can help investors benefit from the specialist market insight, by locating top investment hotspots across the country. Often, investment agencies will scout investment hotspots and look for key factors to identify growth in the area. Agencies help investors find the ideal properties to achieve their investment goals. Whether an investor is looking for capital appreciation or high yields, an investment consultant will be able to find the best opportunities available.

Investors who opt not to use an investment agency are far more likely to invest in an area they know well. However, this offers limitations, for example, many investors are based in London, which is being outpaced by growth in the North of England. If an investor purchases property in an area which is not profitable, they could miss out on maximising their earning potential.

Developers

Investment agencies usually have good working relationships with reputable developers. By obtaining industry knowledge over a number of years, agencies will know the developer’s past work, financial stability and will have direct contact throughout the development process. This can benefit investors as the agency will be able to assure the investor of the quality of the finished development. Additionally, for completed developments, investment agencies will have reports completed for snagging and quality assurance, making sure the buyer knows if any further investment is required.

Investors who are working alone may struggle to make direct contact with the developer. However, if communication is made and the investors secure the property without researching the market, the result could be far from the result that was expected. If the development has a low build quality and is not to the specifications expected, the investor may incur additional costs to bring it up to standard.

Early Access

Investment agencies can often supply landlords with exclusive listings. These opportunities may be off-market, so competition is low. This will help investors secure a property which is not yet publicly listed, meaning they can secure the property and have priority choice of the units they want. Gaining early access to exclusive opportunities may help investors secure the property at the best price possible.

Some existing landlords will search the open market for investment opportunities. While this can be a good way of securing a fruitful opportunity, options are limited. Furthermore, if investors find an opportunity they are interested in, they could be outbid, as competition is typically much higher. Therefore, to secure the property they want they may have to bid above market value, limiting the potential return on investment.