InvestorKit expands into PPOR market as buyer’s agencies face downturn test

The move marked another step in InvestorKit’s broader expansion, following its recent seven-figure merger with a broking business that expanded its investor lending offering.

InvestorKit Group chief executive Arjun Paliwal said the decision to expand the firm’s offering followed a change in client needs, with some investors reaching a point where they could use accumulated equity to purchase their dream family home.

"Over the past eight years, many clients started their investment journeys as rentvestors, with the long-term goal of eventually using the wealth they’d created to purchase their dream family home," Paliwal told REB.

"We’ve helped them build their portfolios, grow their equity and work towards financial freedom. Now we want to help them take that next step and turn those financial goals into reality."

The new service will initially focus on established houses in Sydney priced around $2 million and above, before expanding into Melbourne and other major capital cities.

"We’re seeing a particularly attractive buying window in Sydney, with property prices sitting around 2023 levels in parts of the market.

“Combined with softer buyer sentiment, affordability pressures and reduced competition in certain segments, we’re seeing opportunities for financially prepared buyers to secure quality homes at attractive prices."

Led by buyer’s agent Phuong Ngo, the new service will provide end-to-end buyer representation, including property sourcing, market research, inspections, due diligence, price assessment, auction bidding and negotiation.

Paliwal said softer market conditions were also creating an opportunity for the agency to expand its services.

“Market downturns don’t mean opportunities disappear. In many cases, that’s when some of the best opportunities emerge. You just need to know where to look and have the confidence to make decisions backed by data rather than emotion."

He said weaker buyer confidence had also shifted negotiating power in some segments, creating opportunities for buyers’ agents to secure better value for clients.

"When confidence is lower, and there’s less competition for certain properties, buyers can find themselves in a much stronger negotiating position, rather than competing against multiple bidders and feeling pressured to make quick decisions."

“This is where a good buyer’s agent can add significant value.

Paliwal said the agency’s expansion would also bring its existing research and data capabilities into the owner-occupier market.

"Just because someone is purchasing a home to live in doesn’t mean they should compromise on the quality of the asset.

“We want to ensure the properties our clients purchase not only meet their lifestyle needs but also stack up from an investment perspective, with strong fundamentals and long-term growth potential."

InvestorKit’s move comes as buyer’s agencies review their strategies amid changing market conditions and client demand.

However, Paliwal cautioned against buyer agencies diversifying simply to generate more business during a slower market.

"Expanding into a new service should be driven by genuine client demand and the ability to deliver exceptional outcomes, not simply as a way to generate more business during a slower period."

He said owner-occupier representation required a different skill set from investment property buying, with buyer’s agents needing to account for clients’ lifestyle needs, family requirements and long-term plans.

"I think every buyer’s agency should be constantly reviewing its strategy, particularly as market conditions and client needs evolve.

"For agencies considering diversification, my advice would be to make sure you have the right expertise, systems and processes in place before expanding."

Paliwal said InvestorKit would continue supporting clients looking to grow their residential portfolios or move into commercial property, rather than shifting its entire focus to owner-occupier buying.

"Ultimately, the agencies that will stand the test of time aren’t necessarily the ones offering the most services. They’re the ones that consistently deliver the best outcomes for their clients, regardless of what the market is doing."