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Property Investment Services: True Costs, Different Types, What To Be Aware Of

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Property Investment Services: True Costs, Different Types, What To Be Aware Of

They say anything worth doing is hard. And the perception of investing in property is probably falling into this category. But it really doesn’t need to.

Property investment is a complex and slow burning beast. It requires capital. It requires time. And once you’ve finally made that purchase, you need to ensure you track and measure the performance of that property. 

For some, this can seem overwhelming and can act as a barrier to entry for many. Property investment is complex, and that’s why there are a range of investment services that can help alleviate some of this pressure.

But be warned. Not all property investment services are the same! 

Here, we breakdown what they are, the different types and where PropHero falls into play.

If you’re considering investing in property it’s important to stay informed on the whole industry, so this post was written to help you decipher the difference between PropHero and regular old, out of the box investment services. 

 

Property investment services buy on your behalf

To begin, it’s important to understand what a property investment service is, and how they work with you to bring you into the investment market.

Firstly, an investment service will purchase a property on your behalf, and will manage the administration and maintenance of the property. 

A property investment company is attractive for new investors as they bring with them the experience and industry know-how of investing in properties with high growth and high returns.

Many new investors are unsure if they are making the right choice, so property investment companies take on the decision making load as well as the timely management of the properties that are purchased. 

 

Different kinds of services

There are all different kinds of property investments, so naturally, there will be different kinds of property investment services. We’ll run through a few of the common ones below, but email info@prophero.com if we have forgotten any important ones. 

Buyers agents

Buyers agents will help you find and purchase a property. They are there to help you scout and settle on a property and their engagement will end once the contracts are exchanged. Buyers agents typically work in a specific area though, so it’s important to keep that in mind if using one. 

Property management services

If you own a few real estate properties that generate weekly rental income, even something as small as collecting rent can be time consuming. There are a range of property management services available for those looking to reduce the administrative load of managing multiple investments.

These services will come into play after you’ve purchased the property and are very popular with real estate agencies given the multiple of properties they look after. 

Commercial property investment services

If you’ve invested in commercial real estate then your requirements will be different to someone who needs help managing and investing in residential real estate.

Commercial real estate is used for business, and although these properties can be the same size as some residential dwellings, some properties in this market can include hotels, restaurants, offices, industrial and more.

Commercial real estate properties may be built for a special purpose, and in these cases will require a commercial real estate management service that can help you manage and maintain that property to standards and regulations. 

Full suite property investment service providers

This is the category that this post is really about. An property investment service that searches for and purchases the property on your behalf and manages it on your behalf.

You may get regular reports on the performance of this property, but you may not have a lot of contact with the property or the tenants while you own it. The idea here is that you hold the property like an asset or a share, and you can sell it when you have met your financial target. This could take years or decades depending on the investment you make. 

Investment coaches and advisors

The last category we’ll cover here are real estate investment coaches and mentors. These are businesses that either offer 1:1 training or courses or books on the principals on property investment. 

They may sell you a book in order for you to get the insights, but you’ll then need to apply that knowledge to each region and property you consider purchasing. 

 

Things to be aware of when using a property investment service

It can seem really appealing to new investors to use a property investment service, but there are a few things you need to consider before using one. 

  • Firstly, you may never see the property or have much engagement with the process. Here the business purchases it on your behalf purely because it may fit the brief. 
  • Property coaching and advice might be outdated. There are always areas with cheap properties that offer high growth, but are the investment services and coaches keeping up to date with this?
  • The properties you purchase with services may be in a high risk zone for environmental impacts. You may not be given this information if you purchase through an buyers agent

PropHero is PropTech – and that’s what makes us different…

PropHero is different to traditional buyers agents and property investment services because we start at the one place no one else does – through data and a proprietary model for low risk, high return investments.

Our process is data-led, analysing over 18,000 suburbs and checking 200+ variables to ensure our clients see high returns. 

We are national – not local. And will never recommend a property because we are in its proximity. We also have offices in Spain and Bali where we sell villas and properties internationally. 

We offer our clients results. Our clients rave about us and leave reviews because they see results that are 17% higher than any other provider we’ve mentioned here. Don’t believe us? See what our customers say for yourself

If you’re unsure whether or not you want to use a buyers’ agent or a different property investment service, book in time with our team to run through the real PropHero difference here

In just 30 minutes, you’ll see how we work, the PropHero process, and how we deliver results better than any other service you can find. 

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