Hello all… I was just wondering what everyones opinion was on the subject of buying an IP without having physically inspected the property yourself. For example, a young person such as myself could only really afford a rural property without having other people as guarantors etc.. however due to the distance of some these properties its sometimes difficult to make the journey to visit prospective properties that I may want to buy. I know you can use a building inspector, get a pest (termite) inspector and get a valuer in before purchase… Does someone have any ideas on getting around this issue?
Cheers,
Jay
***************************
You must stay pOsitive…
…then the cAsHfl0w will come!
***************************I think that it is all about the people that you are using to be your eyes. I’ve got a building inspector in Launceston who I’ve used a number of times and now feel confident in using his eyes. A couple of digital photos e-mailed to you as well should also help.
I would not be happy buying without seeing. I think that you would be leaving yourself vunerable to being ripped off somewhere along the way.
bribie
G’day…
You may end up owning a white elephant or a pig in a poke. Some would consider this a fulltime job for it to be successful….and it sure is.
Take all the people in the Real Estate Industry that are “part timers”…an absolute disaster.
Not only for them but the rest of the Industry as they knock off 5-6 properties a year…usually at the wrong price…someone gets hurt.The income and opportunities for those giving it 110% effort is reduced by the sheer number of half commited so called part time R/E Agents.
You must protect your interests/investments… you may very well end up buying a property from someone who has stolen anoters identity..worse you may end up with something that doesn’t exist.
Either your IN or your OUT.
Go for a drive as many times as it takes…won’t be near the cost of a huge mistake…110% or zip
Billfromoz
Billfromoz,
My sentiments exactly – i’m a person of few words but you expressed it well. thanks
bribie
good oya bill
i read somewhere that if you dont have the money to jump in a car/ plane to check out places, you shouldnt be investing……
trips are a tax deduction by the way…..
maybe we should check out some”property” near the
Gold Coast.its lovely up there this time of year…….[
]dags nobody
the hippie investorThanks for all the responses… point taken… i must put in the effort (ie go see the properties no matter how far they are) in order to get the results… [^]
Cheers,
Jay
*************************
You must stay pOsitive
…then the cAsHfl0w will come!
*************************Good on you Jay..
Now ya talkin mate…
Best of luck… do your homework and if you come back empty handed… so be it… another place another time.
Billfromoz
Good advice from Bill and Bribie,
Personally I would never buy a property nor land without seeing it first.
I would like to relate a story to you, for all it is worth.
A land salesperson that works for a large land developer gives me a call and says: “We are having a new stage release. This is going to be a beauty! there will be blocks with 180 deg panoramic views on the river, some are already sold etc…”
Well, I think to myself, sounds good to me. However I was a bit busy at the time so didn’t go and have a look. A week later he calls me again and says, “I will take you up there, when can you make it”.
OK so we make a time, he drives me up there and tells me there are still blocks with great views etc…
So we get there 40 mins later. Don’t like the feel of this place. (He did tell me it was right NEXT to housing commision homes.). He then shows me the views. I COULD NOT BELIEVE MY EYES!!! there was nothing to see!! (there were really NO views what so ever). They were all duds! He wasted my time and I was sooo disappointed.
The worst is that I was really looking forward to it. I thought I could trust him … I had bought quite a few blocks from them in the past.
So the moral of the story is:
– Don’t trust other peoples opinion, especially if they are salespeople. (they always see things a “bit” differently!)– Learn the talk of salespeople! “a 180 deg panoramic views of the river” means “water glimpses through the tree tops”.
Pin
Pos and all
i would never advise you to buy unseen, but i have done it a few times. most recently the deal was just too good and it was impossible to inspect it. i magaged to get a good team of people who reported back to me, all reports confirmed each other. i found the agent very honest, she told me what was wrong and what i needed to do to inprove the property, an independant person told me virtually the same thing (maybe they both had the same script[]). the properties are in a town of 5000, were about 35k and rented at 110pw, the deal was to good to refuse. time will tell if i made a mistake.
westanThanks for asking the question Jay, the replies have given me something to think about and has changed my mind on a potential deal. It is a unit for $60000 with weekly rent of $120. It is ten hours away by car and I was thinking of buying site unseen, (although I had a friend in the town, and I did see a digital photo) I think maybe I might just take a drive JUST IN CASE[8D]
A few members of my family have formed a syndicate and this will be our first IP. It’s all pretty exciting
Steve O’D
Hi all, I know it is preferably to see the property for yourself, and as someone did write “i read somewhere that if you dont have the money to jump in a car/ plane to check out places, you shouldnt be investing……” BUT some investors live O/S and it makes it quite difficult to jump in a plane and go and see, even if it is a tax deduction. You also need to have people who know, they will benefit from helping you and be your eyes and ears. A win win situation.
C2
” Is it true that the more you owe the more you grow until the bank steps in? “
I have a different view.
I have purchased 8 properties sight unseen. I wouldn’t just be buying properties off the net though. If you have a buyers agent or real estate agent you can trust (like I have) then why not. You can order various building checks etc. If you look at teh property, what can you see anyway. i suppose the main thing is location etc, but it doesn’t really matter what colour the carpet is. If the numbers stack up or not is the main thing.
Terryw
Discover Home Loans
North Sydney
[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
Agree as long as the number stack up, however if you can pay a visit before buying is recommended but its not always the case.
Anyway what commission is the buyer agent get? they share commission of 2% with the seller agent?
regards,
Erwin
I have a different view.I have purchased 8 properties sight unseen. I wouldn’t just be buying properties off the net though. If you have a buyers agent or real estate agent you can trust (like I have) then why not. You can order various building checks etc. If you look at teh property, what can you see anyway. i suppose the main thing is location etc, but it doesn’t really matter what colour the carpet is. If the numbers stack up or not is the main thing.
Terryw
Discover Home Loans
North Sydney
[email protected]Thanks for asking the question. I was wondering the same thing. I have one property in my area negative gear – and looking for a second, but I can’t find a positive gearing property close by (central coast, NSW). Thanks for everyones input, it certainly gives me more to think about as well. [:X]
Lee
]
]). the properties are in a town of 5000, were about 35k and rented at 110pw, the deal was to good to refuse. time will tell if i made a mistake.
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