Property Investing in Unfamiliar Territory: Know Who to Ask

Selecting a real estate investment in a new market is a complex and challenging process for the first-time and seasoned investor alike. With a myriad of factors to consider, such as property conditions, location, market trends and local regulations, it's easy to make mistakes and miss out on high-yielding opportunities in expanding markets. However, this mammoth decision can be simplified ten-fold if you know who to ask. Real Estate Advisor or Real Estate Agent? Well, the answer lies in your scouting approach! Many investors’ first point of call is a reputable estate agency. A real estate agent is a licensed professional who helps clients buy, sell, and rent properties. Typically affiliated with a brokerage, they are responsible for listing and advertising properties and showcasing them to potential buyers and renters. They often assist with negotiating sale or rental prices and may also handle all KYC paperwork and facilitate other legal aspects of the transaction. Investors who opt for this route often engage with several real estate agencies simultaneously and conduct their own comparisons and assessments of the opportunities shown to them. This can prove to be a time-consuming and laboursome process, often requiring a number of back-and-forth flights for foreign investors. On the other hand, a real estate advisor is a professional consultant who assists investors in making informed decisions about their property investments. Their in-depth understanding of the real estate market translates to a superior value-add to clients through fundamental analysis of market trends, identification of high-performing investment opportunities, and provision of guidance on financial planning and budgeting. In this manner, real estate advisors can provide you with tailored advice based on your individual investment goals, risk tolerance, and financial situation. They also help you navigate the legal and regulatory aspects of the real estate market. Investors choosing this route will pay a consultation fee for this service and will unlock access to raw information and professional assessments of property investment opportunities. They will also benefit from access to a wider database of potential opportunities through a single point of contact, thus saving time and resources while safeguarding their interests. 

Some key differences to consider: 1. Representation: A real estate advisor represents the investor, while a real estate agent represents the seller. 2. Purpose: The key objective of a real estate advisor is to provide the investor with the best possible guidance based on their unique investment parameters, while a real estate agent's principal aim is to sell the property for the best price and terms for the seller. 3. Expertise: Real estate advisors possess an in-depth understanding of and an analytical outlook on the real estate market and can provide specialised advice on investments, while real estate agents are primarily focused on sales and marketing. 4. Unbiased perspective: Real estate advisors provide an unbiased perspective on the market and investment opportunities therein, while real estate agents often have a vested interest in promoting specific properties. 5. Compensation: Real estate advisors are typically compensated through consulting fees, while real estate agents are normally paid via commissions on property sales.  

If you would like the assistance of a Real Estate Advisory firm with your property investment journey in Mauritius, Blue Diamond Capital is glad to assist. We offer a free, no-commitment online consultation which can be booked by contacting us here.      Published by: Levana Naidoo, Property Investment Director February 8, 2023