Hi all,
I am in Perth at the moment and starting out in property with no equity so i have little funding. It is hard to get property here with the cost so was looking at going interstate.Has anyone done this and what did you do? Did you fly there to look at houses? What are peoples opinions on this matter because Perth is hard to get into at the moment for someone with little financing.
ThanksHi there
have you any relatives over the east side of the country?In our case – our first IP was actually interstate but it was near my husband's family – so when we visited them – we did our inspections and bought a property – it also meant they could keep an eye on it for us and any subsequent visits we did, we could claim some of our costs if we also did an inspection and undertook some maintenance of the property.
Perhaps you could do something similar?
thanks
I'm in Sydney and all of my investment properties are interstate.
It's not a barrier, infact I think that you tend to put a lot more effort into researching an area and doing the numbers, making sure you have finance etc, before you jump on a plane and start to look at physical properties.I must admit though that a friend was looking at properties in Cairns and saw one that he thought we might be interested in, we agreed he put a holding deposit on for us and before we knew it we had purchased our 1st property 2000 km away and we hadn't even seen it.
The trick is do you research, do the numbers, while working out your finances. If you can't afford to do what you want at the moment, the worst that will happen is that you will have learnt about the regions you have been researching, and will be better prepared to spot a real bargain. Hey, tell a mate about it, and maybe they will return the favour one day.
Hi there,
I live in SA and bought my second IP when I was 20. I found it on the internet and without seeing it, bought it for a good price. Knowing what I do now and still learning, I would not recommend buying a house without seeing it personally. Although this investment turned out well, I look back now and can't believe I did it… I mean you spend more time looking over a car that you want to buy…. and that's only 10% of an IP!!!
The difficult thing about an interstate IP is travel and trusting your PM and tradesmen, that what they say is really happening… But a good point is that when you go on a trip to that state and you go past the area, part of your holiday is a tax deduction!!! Overall like anything there are good points and bad points..
Cheers
Thanks for the help guys.
So i guess buying the property without seeing it isnt the greatest idea although i already knew that. I am just worried about flying over to see the property and not wanting it, then that trip is a wasteHi Spudsta,
I'm also from Perth and found myself in the same position recently. I would have loved to purchase in my home state, but as you know the prices are just crazy if you don't already have a property behind you. If we stretched ourselves financially we could have purchased an undesireable unit in Perth but given that this would not be suitable as our PPOR, we figured we should look for the best IP we could get for our money regardless of location. We narrowed our search down to SEQ and have now had an offer accepted on a 3 Bed cottage in a nice suburb (awaiting settlement).
I wasn't comfortable in buying 'suburb unseen' and am very grateful that I made a 3 day trip to check it out. This was the best thing we could have done as it changed our suburb preference. We were lucky and inspected our property during the trip, however I wouldn't have minded buying 'property unseen' after I was comfortable with the suburb. If I was to do this I would have looked for a place that is already tenanted as this gives an indication of condition and you aren'tdependant on Agents opinions on rental values.
I'm very much a novice as this is my first property, so don't take this as a recommendation just what I did to my first rung on the property ladder.
Cheers
Hi, I'm in a similar situation though I thank god I already own a house over here in Perth. I can't really believe that Perth can go much higher (but we've been proved wrong on that one many times already I guess) and historically it seems Sydney has usually been the price leader in Oz so I feel that it must be a good time to use some of my crazy West Coast equity to buy an IP interstate.
Unfortunately I know very little about Sydney, been there once for a couple of days on a ski trip years back and have no friends or relatives in town but I'm flying over for a few days next week and as I've only just discovered this site could anyone give me a few tips on where to look, who to talk to, good agents (buyer and seller). I'll get a hire car so traveling shouldn't be a problem but I think I'd prefer to stay around the city and harbour but I'm certainly open to suggestions. I think my budget could be anything up to 400k, depending on cashflow, though I would like to start smaller.
wow – so many people here in WA! i have currently my own house and 2 IP's, however am eagerly looking to buy a couple more. Like the other West Aussies on the forum, I too am looking interstate however time off work, away from kids, money etc are obstacles that make it difficult to just pop over and have a look at properties i have seen on the internet.
Moreover, it would be even more difficult purchasing a property in USA through gr8realestateinvestments.com don't you think. There we would have to pay for the service of finding the best properties, and likewise if purchasing over east if unable to physically view them, perhaps paying for the services of buyers agents might end up a more profitable option? i don't know……….comments please!
We recently purchased our first interstate IP (though with the size of WA I once purchased an IP 2900kms away).
I spent a large amount of time conducting DD here in Perth, then flew over to QLD, hired a car and spent a week pestering REA's and visiting various suburbs of interest, eventually picked up an IP with a 5.75% Yield (plus depreciation) and with a rent rise due soon, the IP next door sold for about $15k more 10 months prior, so i'm happy with the purchase price as well.
I also ran into two other WA Investors whilst there so we caught up for dinner and compared notes..
As a bonus the whole trip is tax deductible as well
Is the trip tax deductable if you dont already have a property over there? It doesnt sound like you would be able to deduct the whole trip if you spent a week looking and then bought one.
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