just wondering what the correct way to go about purchasing property sight unseen is? I am aware after looking at properties in my own town that some times they look FAR from the pics online. any advice is welcome!
thank you in advanceJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
It helps a lot if you've got someone on the ground to inspect the property in person. I've got clients that use local property managers or buyers agents.
Also get a building and pest inspection carried out. See if you can call the inspectors during or just after the inspection to ask questions.
It's easy enough to do all of the due diligence remotely. You'll even be able to get an idea of what the street/neighborhood looks like via google maps.
JamieTheFinanceShopParticipant@thefinanceshopJoin Date: 2012Post Count: 1,271
Definitely get a building and pest inspection done and don't use the one that the agent recommends. Use a completely independent one.
Arguably I think you should buy properties unseen when you already have a few under your belt – otherwise pay a few hundred and inspect the property.Nigel KibelParticipant@nigel-kibelJoin Date: 2005Post Count: 1,425
Only buy sight unseen if you have someone on the ground that can do the work for you.
Never buy just over the internet. Frankly if you are buying a property interstate then the cost of an airfare is insignificant compared to the value of the property you are buying. People also buy in the United States often over the internet or the are dealing with wholesalers who are not located in the cities with the properties they are selling.
From my experience the quality of the people you are dealing with is the most important point and that will often determine whether your investing is successful or not.Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069TheFinanceShop wrote:
Arguably I think you should buy properties unseen when you already have a few under your belt – otherwise pay a few hundred and inspect the property.
Yeah I agree with that. It makes sense to fork out a few hundred on a flight to scope out a purchase that's in the hundreds of thousands.
Jamiejenni_nextplace.com.auMember@jenni_nextplace.com.auJoin Date: 2013Post Count: 36
Hard I know if you don't have someone on the ground who can take a look for you.
You could always post a job for someone to attend to the property and take a video for you, maybe the building and pest inspector will do if for you.
Thanks again forum people! I love having answers to all my questions!!Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539
Certainly tread with caution buying sight unseen. I've seen plenty of properties whereby the pictures are a few years old. For example, pictures taken immediately after a new property has been built, but has since been tenanted for a few years, perhaps the grass has died, perhaps the demographic in the street isn't as you'd hoped. The power of a pair of eyes and an attentive nose is very important. You cannot smell issues such as damp from the luxury of your sofa.
Thats exactly right JacM, some photos go back years! I'll just have to bite the bullet and go for a road trip!!EngeloRumoraParticipant@engelorumoraJoin Date: 2010Post Count: 618Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539mizfitz wrote:Thats exactly right JacM, some photos go back years! I'll just have to bite the bullet and go for a road trip!!
Always remember to keep the numbers of things in mind. Don't spend more on a road trip (petrol, accommodation, loss of wages) than you could just staying at work earning your wages doing what you do best, and outsourcing the hunting. I often come across clients who forget that very important equation and have been struggling for ages trying to understand why they are not moving forward.
Certainly when I started investing I ignored that particular fact and could've bought an extra property or two with the time and money I frittered away hunting about trying to get up to speed with things by myselfRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
The other consideration is the cost of visiting the area and scoping out possible properties / properties you put under Contract is not a Tax deductible expense.
The cost of investment advice is a Tax deductible expense as long as the advice relates to the generation of income so using a Professional can often be the way around it.
Yours in FinanceMark CoburnParticipant@mark-coburnJoin Date: 2006Post Count: 181
Jacqui is right.
Do what you are good at and get the best help you can find.
A bad first investment can set you back years and years. A good first investment can double in value every 8-10 years and be worth 8 times what you paid for it in just 3 property cycles (24-30 years).
I have bought a large property sight-un-seen once and got away with it. I should say, I had looked at it driving past and when it came on the market I knew which building it was. I would never buy a property sight-un-seen again, never.
The amount of grief one property can course is not worth the possible gains. There are good deals in the market every other day.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Agree with Mark the market is awash with some cracking deals at the moment.
With our unique 100% finance product my business partner is putting clients into some real cracking deals at the moment.
We take Power of Attorney for our clients and inspect and assess the properties for them as most of our clients lead busy lives and don't have the time or inclination to travel to see the properties or the experience to negotiate the contracts.
Yours in FinancekirbonavichMember@kirbonavichJoin Date: 2012Post Count: 23
Don't be lazy and go and look. Property and Pest inspections are incredibly biased as most inspections offer a service of rectifying the problem, for example, you may be charged $500 to put 'Tallen' or 'Rat Sack' in the roof, when really, it will cost $6 for rodent poison and 30 seconds on a ladder.