the beginners test to buying interstate

Hi Alf,

I live in Toowoomba, Qld and may be able to provide anecdotal evidence or personal comments on the area in question. Email me at [email protected].

Call the local council, they will often give you some good information on local conditions.

Gary Young
Home Loan Connexion
Mobile 0407 64 66 32
Fax +61 7 4636 4841
email [email protected]

Hi Alf – I don’t disagree with the concept of buying interstate, though as one whose just booked (another) trip to WA, why not look around WA country areas first?

To answer your questions on info sources:

a. vacany rates

Ring up property managers in the area and ask what properties/locations are in demand. Firstly ask about what they can offer as a PM. Say you’re thinking of using them and want to find a place that will be easy to let out and won’t be a hassle for them to manage.

b. jobs

Get stats on unemployments rates from govt or ABS websites.

c. future plans

Contact local council or regional development authority.

Find out what are the area’s main industries and read about developments in those industries.

Look up websites for local papers and ABC regional news.

d. infrastruture

As above.

e. house condition

Get a property manager, valuer, or builder to look at it. Maybe even give them a checklist so nothing’s missed.

f. location

Find out which locations are best from your discussions with PMs. One volunteered that once I have several places on my shortlist I ring them to get their views on the street before proceeding. I will do this and will most likely use this person as my PM (after I’ve met them in person).

There are a lot more questions to ask about things like rates, BC costs, etc.

Time frame – from deciding on a location, doing research and selecting a place could be 4-8 weeks. Once I’m in a town I’d allow 7-10 days to walk the area, select a place and buy it.

My approach which I am planning to test (very soon) goes something like this:

1. Beforehand: Get details of previous sales over the last 6-12 months. Get street maps of the area. Ring PMs re good and bad areas. Make an assessment of preferred suburbs. Ring REA a few days prior to your visit. Tell them what you’re looking for. You might also say that price is less important than rate of return and you’re aiming at somewhere near 10%. They might suggest some places, which you should take note of.

2. Arrive in town on a Friday night. Ideally you’d have dinner in town and look in agents windows afterwards.

3. 9am Sat morning: Quickly go around REAs grabbing rental lists and having another look in the windows.

4. 10-11am Sat morning: Actually go into agents and ask about what properties are available. The only info you need is: 1. Asking price, 2. Adddress, 3. Rates, 4. Strata levies, 5. if tenanted, the rent it attracts.

5. Sat afternoon: Using the rental lists you’ve gathered as guidance, estimate the rent of each place for sale would fetch.

6. Sat afternoon: Look at yields (rents/price) of various places as well as comparing fixed costs (rates, etc). Develop a shortlist of high yielding properties to inspect.

7. Sat evening: Have dinner and walk around areas on your shortlist.

8. Sunday: Wonder around looking at places on your shortlist.

9. Monday: Get back to the agents and tell them which of their properties you’d like to inspect.

10. Based on what you see, previous sale prices and what would be a reasonable rental return, put in offer(s) and arrange building/pest inspections.

Regards, Peter

Hi Alf – For WA properties, try Dept of Land Administration (DOLA) ($24 per postcode, they email you the info). Or use Home Price Guide ($49.95) who also email.

I then go down to the local internet bar and print it out on their laser printer (cheaper than wasting half my inkjet cartridge on it).

Peter