I called up a real estate agent out in country Victoria this morning, and he was telling me about the property I am interested in. Out of curiosity, he asked if I had recently attended a seminar in Melbourne. I replied by saying “There are many seminars going on in Melbourne. Which one are you referring to?” Then he tells me about this other chap from Melbourne who was interested in the same property and had asked for the Section 32 documents to be faxed to him so that he can go ahead and put in an offer for the property even before viewing it!! I quickly told him that in Steve’s seminars, he would STRONGLY suggest to do the proper due diligence and follow the correct process, and not fall for the same “emotional” buying that some people out there would, just because it looks good on paper and hear-say, and concluded that I would follow due process. The real estate agent said “It’s crazy how they do that!” referring to the buy-now-view-later client, and told me to get my butt there as soon as possible.
Anyway, thought I’d share that with you.ChoC
I know lots of people on this forum buy without viewing and they have strong views in relation to doing this. I like to know the area I am buying so I can tell they type of area and they type of people living there etc.
I lived in a very poor working class suburb most of my life and would never have invested in it ten years ago. However, after revisiting the area I saw the changes the improvements completed and so I bought an investment property there in Feb this year.
So by seeing the changes in the area I could tell this was a good location to invest, becuase the old adage location location location is still just as important with investment as it is with PPOR.
Just my thoughts though.
It all depends on your level of due diligence.
If you have learned everything there is to know about the area, if you have done your research, seen photos, had all the building reports etc done, crunched the numbers etc then why would you actually need to see it?
It is a pure unemotional business decision you are making. If you are worried about what is next door etc, then get a property manager in the area to provide an independent assessment for you.
I have found that good property managers will do these things and in my experience provide honest advice. Make sure the manager is from a different agent than the one whom you are purchasing through.
Furthermore, I have found that most building inspectors are quite happy to discuss the property generally with you after they have done their report.
I think that if you are buying interstate it is impossible to personally inspect all the time. Further, if you make the expensive trip you feel a little obligated to justify the expense and make a purchase.
i totally agree with everything Kirby said.
I also think that if you are buying cheaper properties it almost doesn’t work out if you have to travel to buy them.Being limited to buying in an area I can physically inspect at a moment’s notice wouldn’t have worked for me – neither time-wise or money-wise, as I live in Sydney, and can’t afford to buy a negatively geared property in Sydney or surrounds (yet). If I hadn’t bought ‘sight unseen’ in NZ cheaper areas (subject to builder’s report and as much due diligence as i could think of at the time) I still wouldn’t be ‘in the game’.
cheers-
Minihi guy’s
i’ve got no in principal disagrement with you about sight unseen. But my one and only time of buying sight unseen was a big learning experience. It was a property in Clarendon Vale Tas bought in 1997 for 33k was a good building only 15yrs old, brick, nice views.
But i had nothing but problem tennants one after the other. was pleased to get rid of it for 55k this year it was one big hastle.
Now i would never buy unseen, looking is fun, a tax deduction and gives a chance to see the whole area. this is what i should have done in Clarendon Vale may still have purchased, but to be in the area and talk to the neighbours etc is very valuable.
regards westanI’ve purchased 6 properties sight unseen. (i’ve still never seen them). All has gone well so far!!!
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Westan
> looking is fun,
Hmmmm… I guess….but I found the novelty wears off a bit after about 10 or 20…Last summer I looked physically at houses over several weeks in NZ – found one – but I made so many mistakes – from getting emotionally involved/falling in love with the house, ‘wanting it’ too badly, then getting intimidated by real estate agents to up the offer or lose it to another buyer (which to this day I think was a bogus agent tactic) and to top it all off, the builder’s report turned out a super-dud so I pulled out.
So I felt like i wasted my summer holiday and got nowhere. All that time and energy and still no house. By that stage my boyfriend was climbing up the walls cause he was soooo sick of the word ‘property’ so I thought ‘i gotta find another way to do this that’s more time effective’.
>gives a chance to see the whole area.
>to be in the area and talk to the neighbours etc is very >valuable.I totally agree, I wish I had been able to do that with my ones too, however, it was questions I could have asked people such as the building inspector – or really any local that’s not involved with selling you the property. I was lulled into a false sense of security because the house had a long-term tenant with rental documents (who left as soon as it settled!) so I didn’t ask enough questions.
I think I’m going to get better at buying sight unseen as I know more what I need to know about a property I am thinking about buying, and how to find it out.
cheers-
MiniHi all
looks like everyone is up late tonight, i’ve got to work tommorrow better get to bed soon.
Mini i try to have a good time looks for houses, reward myself. When i went to NZ 4 weeks ago looked for 4 days then holiday for 6. Relazing in the pools at Hanmer springs was one highlight, sitting in 40 degree water with the snow around was fantastic, even when my son hit me on the head with a snow ball. i still love the thrill of the hunt. sometimes i start negotions over the phone. In Jan i saw a property in Shepparton on the net for 79k i offered 60k they came back with 65k. so i jumped in the car and drove 3 hrs to see it, itwas a mess got it for 63K spent 20k is now rent for 160pw and worth 130k, i love this game.
westan
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