All Topics / General Property / Buying site unseen

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  • Profile photo of drewsterdrewster
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    @drewster
    Join Date: 2004
    Post Count: 13

    I hear from some investment seminars how people have brought houses site unseen and was just wondering if anyone here has ever done that and whats involved. I’d imagine theres alot that could go wrong.

    Cheers

    Profile photo of PurpleKissPurpleKiss
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    @purplekiss
    Join Date: 2003
    Post Count: 580

    Check with Mini, I think I remember reading a thread once that she has bought properties unseen and protects herself by getting all the checks done ie: structural, termite etc. Perhaps read some of her previous posts and see if you can find any info on it.

    PK

    Fortune Favours the Bold.

    Profile photo of elveselves
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    @elves
    Join Date: 2003
    Post Count: 507

    I bought property sight unseen. My stuff is via phone and fax.I didnt even meet my solicitor and it is just second nature to operate in this manner.

    Due diligence, conditions in contracts to protect yourself, lots of photos to be sent and good communications.

    I bought 3, I passed in three due to bad building reports

    Elves

    Profile photo of westanwestan
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    @westan
    Join Date: 2002
    Post Count: 1,950

    Hi Guys

    yes i have bought unseen before and it has been fine, i just got the Builder in. checked the rental assessment and demand with a property manager and i was happy.
    But always be careful it is best to see the property if possible as an agent will not tell you who is living next door or that there is a toxic dump behind the home.
    The last properties i bought unseen were two flats for 30k and 35k and the rent is 135 and 140pw. So i5t was an absolute bargain, too good to miss out on.
    regards westan

    I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]

    Profile photo of JulianJulian
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    @julian
    Join Date: 2003
    Post Count: 232

    I have never done it

    Julain

    THERE IS ALWAYS A BETTER WAY!

    Profile photo of kay henrykay henry
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    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    Just,

    I bought my last two properties sight unseen. One from the net, but in an area I know extremely well, and the second because I had seen one of these properties advertised on the net, fell in love with it, and made some phone calls to see if another one was coming up soon.

    I did a BPR on the second one, but not on the first. I don´t regret that decision about the BPR. I´ve come to know quite a bit about units, and given the age of the unit, and some background checks on the body corporate and expenses etc, i felt quite comfortable in purchasing it.

    I also did extensive net searches about the area of the second place. And made calls to independent RE agents in the area cand picked their brains about anything I could think of.

    The net has made the world global. I love it and i would be happy and confident to buy many purchases off the net.

    kay henry

    Profile photo of woodsmanwoodsman
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    @woodsman
    Join Date: 2004
    Post Count: 714

    Just_starting,
    Yo can do all the relevant due diligence via the net, phone, fax and e-mail. So I agree with the other comments.

    Unlike purchasing a home, where you are looking at non-financial criteria as well and therefore would probably want to view the porperty a few times. IP investment criteria are more objective, which lends itself to site unseen purchases.

    Currently looking at various areas, which are all off the web. Maybe in a month or two I will be ready to purchase. Would be happy to do so, if all checks out.

    James

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    JS

    I have never inspected any of the 134 wrapped properties we have purchased or indeed similar number on behalf of our Investors.

    If you undertake responsible due diligence and engage relevant professionals then you should have no problem.

    The underlying consideration is however to ensure that you do your own research on the area and the surrounds. Dont leave that to someone else.

    Create a win/win situation for yourself and make others feel important with their contributions.

    Cheers Richard
    richard at fhog.com.au
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of RubbachookRubbachook
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    @rubbachook
    Join Date: 2003
    Post Count: 288

    I’ve done it a couple of times for properties in faraway corners of the country. It’s not an emotional thing to buy IP, so on one hand you can trust the technical stuff to paid professionals.

    HOWEVER, just be careful you’re not buying next to a car wreckers / niteclub etc if you don’t know the area well…

    Profile photo of _se7en__se7en_
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    @_se7en_
    Join Date: 2003
    Post Count: 100

    Be very careful about buying unseen. Do as much check as possible, but remember there could be things that are not picked up or information is withheld.

    For a purchase of a property say $100,000, spending $500 flying out to physically inspect the property is well worth it.

    Remember to think about the worst case scenario if all goes wrong. Will saving $500 be worth it.

    I would only buy unseen if I had enough money to not be financally affected if purchase went pear shaped

    Profile photo of JetDollarsJetDollars
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    @jetdollars
    Join Date: 2003
    Post Count: 2,435

    I am in the process of buying sight unseen.

    The steps I take:
    1. Due diligence in the area
    2. Market researches, phone call the local business…..
    3. search property for sale.
    4. get property details, photos,….
    5. offer…
    6. buy…

    Warm Regards

    ChanDollars
    [Keep going, you’re on your way to Frolic Freedom!]

    Profile photo of battz71battz71
    Participant
    @battz71
    Join Date: 2003
    Post Count: 95

    A couple of examples I came across during a buying trip I had late last year…

    1. Property was actually on the main highway (which was also a road train route[:(!]) but that section of the Highway was renamed, so unless you were a local you’d have no idea.

    2. Property was neighbouring a railway line and directly opposite a rail freight terminal.[V]

    Now the problem with these examples is even if i had done all my inspections: pest/electrical/building and even if I’d had commissioned my own independant valuations, there is a good chance the I would not have know that they were on railway lines/major highways.

    And do you think the agents in either example offered that information?

    If I trusted someone in the are to “check out the area” to give you a general overview, then that would be a different story…

    Cheers, Battz

    Profile photo of Still in SchoolStill in School
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    @still-in-school
    Join Date: 2003
    Post Count: 1,844

    Hi Guys,

    have bought a few properties unsighted and never seen, 2 of them, i have no idea of what they even look like, ok may sound very risky, but depending on how you have created and organised your system and due dilligence of property investing, buying property unsighted and unseen can be quite fun, and keeps your minds wondering, what the property may look like.

    Cheers,
    sis

    People 4get that by saving just $3 a day & investing it sensibly
    over a working life, you’ll end up with around $1 million

    Profile photo of _se7en__se7en_
    Member
    @_se7en_
    Join Date: 2003
    Post Count: 100

    I recommend that only very experinced investors buy unseen, Kay and Chan$ seem to know what checks are needed and the right questions to ask, but unless you are experinced you could end up with sleepless nights.

    Even after inspecting a property there is still so much that can go wrong, but at least you might pick up something that could of gone unnoticed.

    When spending thousands of dollars, a few dollars to see the property is a good investment.

    But each to their own.

    Profile photo of shaunwalkershaunwalker
    Member
    @shaunwalker
    Join Date: 2003
    Post Count: 403

    i did my first deal on an ip in darwin sight unseen.
    as i had been in darwin 3 months earlier and had looked around, that and i had lived there for years. i had a good idea of suburbs etc.
    problems i had were,
    RE agent told me the rent was under value by 20 p/w, i should have rung other agents to confirm, (i didnt)
    didnt get a written rental appraisal which would have helped in the decision making.
    didnt confirm RE agents commission fee on renting, darwin is about 10%, cried to RE agent and got him to knock it down to 8%. i should have checked this also
    the map i had used was old, there was no uni 2 blocks away. other than that i bought in a good area (larrakeyah), with solid tennants.
    hope this is of some help
    shaun

    Lead, Follow or get out of the bloody way

    Profile photo of JetDollarsJetDollars
    Participant
    @jetdollars
    Join Date: 2003
    Post Count: 2,435
    Originally posted by battz71:

    A couple of examples I came across during a buying trip I had late last year…

    1. Property was actually on the main highway (which was also a road train route[:(!]) but that section of the Highway was renamed, so unless you were a local you’d have no idea.

    2. Property was neighbouring a railway line and directly opposite a rail freight terminal.[V]

    Now the problem with these examples is even if i had done all my inspections: pest/electrical/building and even if I’d had commissioned my own independant valuations, there is a good chance the I would not have know that they were on railway lines/major highways.

    And do you think the agents in either example offered that information?

    If I trusted someone in the are to “check out the area” to give you a general overview, then that would be a different story…

    Cheers, Battz

    If you used a local pest or building inspectors you can alway ask that person once the inspection done. That’s what I did. The building inspector guy been living there all his life so he even know the street name and where it is. is it a good/bad street?…..

    Warm Regards

    ChanDollars
    [Keep going, you’re on your way to Frolic Freedom!]

    Profile photo of ScullyScully
    Member
    @scully
    Join Date: 2003
    Post Count: 48

    We have bought 1 property sight unseen and had no problems whatsoever. Same advice as most of the other posters here, however I probably would not recommend doing it for the 1st couple of IP’s. But that’s just me. It was good to have a bit of experience first.

    Cheers,
    Karen[:D]

    Profile photo of FrankYoungFrankYoung
    Member
    @frankyoung
    Join Date: 2003
    Post Count: 13

    i dunno, if you were to look at a property on site with your own eyes, you could then justify the faults and areas in/on the structure that needs rectifying or fixing up. what i’m saying is that if your not there and you rely on another pro to do an inspection for you, then how can YOU negotiate a proposed settlement figure with the agent/owner. i understand what you are all saying but this could be a way for you to lose alot of money, (ie you could have negotiated the price down CONFIDENTLY). sorry i’m a builder and seeing an investment property for myself is vital. best is to invest near you or easy travelling distance from where you live. isn’t that what investing is? Making Money!

    regards

    frank young

    Profile photo of westanwestan
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    @westan
    Join Date: 2002
    Post Count: 1,950

    Hi all

    i agree with most of the comments. Scully good point about having a few under your belt first. I should have mentioned that i would only do it if it was great deal, average deals are all over the place no need to buy off the net for an average deal.

    regards westan

    I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]

    Profile photo of brucegrahambrucegraham
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    @brucegraham
    Join Date: 2002
    Post Count: 17

    G’day all,
    All photos, regardless of where they come from,internet or Kodak, look far superior than the real thing.What looks good in photo form just isn’t that good in real life.
    bbruham.[V]

    Winners make it happen.
    Losers let it happen.

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