I am extremely new at this, and I have not purchased my first property yet. I have only had my mind opened to investing in the last few months and wish to act on this in the next few months.
I wish to buy interstate and I have found a few positive investment properties. I cannot get to these properties my self to check out, so what would be the best way to handle this? Or is this a bad move?I do know that there is a vancancy rate of 1-2%, and there is over $1 billion dollars being spent to expand the mining at this township. To further the cuurent question, can I trust real estate agents to give me the true facts about the properties I’m looking at? Or is there other ways of finding out?
Try a buyers agent or someone you can trust.
a 100k loan in interest is a fair amount, take a friday off and fly there and check it out. Would you marry a mail order bride? NO!
It is a big investment and you dont want to buy a sh1tbox, also while there you can build realtionships with trustworthy, realestate agents and what ever else you need.
Also this is tax deductiple, so you should be able to do the trip for under 1000 clams,
take out the taxable portion, it will only cost your $600 not much when considering what you are buying. dont be a tight a55[strum]If you are not yet that familiar with the town, you need a lot of research. As part of this, you could speak to as many agents as possible to find out such things as if there are less desirable areas etc. ask property managers if there are areas/streets where they prefer not to manage properties etc.
Once you believe you have a good feel for the town, when looking at specific houses you need stacks of photos, which the selling agent should be able to supply, and a pest and building inspection. This will give you a fair idea of what the house is like.
Nothing beats going there yourself, and no, you can’t always trust the selling agent to be completely honest. however, many investors successfully buy “sight unseen”
Regards
WakeA trip to research, or look at potential properties is not tax deductible. It doesn’t become deductible unless you are inspecting one that you already own there.
Wake
In general I agree with the above comments. I believe that vyaw2003 is wrong about the tax deductibility. I think you can deduct it off the capital gain if you end up buying a house.
But that is really immaterial.
NEVER believe a real estate agent without cross checking all the facts. They are SELLER agents interesting to maximise the sales price.
You can try to find a buyers agent, but doing your own research is really irreplacable. And often deals look good on paper but they are not really.
I just looked at a property in a town only 30 minutes from my place and got really exited until a local pointed out to me that it was really not a very desirable part of the town. Only two streets down and you are in the good area. This kind of local knowledge is really irreplacable and you definetly will not hear that from the selling real estate agent.
I would also be very careful to buy your first property interstate. I believe that there are too many pitfalls that are a lot harder to spot in an unfamilar surrounding.
Look for something close to home where you can learn the ropes.
It is a lot easier to fix a problem if you just have to jump into the car and drive for 30-60 minutes than at the other end of the continent.
The good interstate deals will still be around in a year or two when you have more experience.
Originally posted by Dazlaine:I am extremely new at this, and I have not purchased my first property yet. I have only had my mind opened to investing in the last few months and wish to act on this in the next few months.
I wish to buy interstate and I have found a few positive investment properties. I cannot get to these properties my self to check out, so what would be the best way to handle this? Or is this a bad move?Margaret Lomas in her latest book has a list of “20 questions you must ask” if you are trying to buy ‘sight unseen’.
See her website Destiny Financial Solutions to order the book. It will take all the guess work out of the process.
Having said that; by taking a (tax deductable) trip there yourself, you will learn a great deal for not a lot of money, and get a mini-holiday at the same time.
I did a road trip into Central Victoria a few years back to look at areas that were cfp – $50k houses with $110 p/w rent. I was away for 5 days, didn’t buy anything as the towns were all dying, but the experience was invaluable.Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Both properties that I have purchased interstate before were done by flying up and viewing. This provides the ability to check the area out to support your research.
WIth todays cheap air fairs its worth a fly up to check it out even if fly back the same day as purpose is only to check it out. The realestate agent may even be nice enough to pick you up from the air port and run you around showing you point of interest. You can then go back on your own later in the day for your own look as they will be biast in what they show.
Remember they are working for the seller however if ask the right questions etc can provide a wealth of information. Eg they will have the stats of other properties in the area that have sold.. They may not wish to share them though
Wayne
Mortgage Adviser
Email [email protected]
http://www.alphamortgagesolutions.com.au
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service we come to you!Hi there
Am currently in the same boat, however this is property # 2 I am looking at…First timing buying interstate so have decided to take this Friday off and fly up to have a look around. I also have recruited the help of a buyers agent who is showing me around the area, has emailed several positively geared properties that I can research further before getting up there. Happy to pass on further information on loaction and deals if you need it![exhappy]
sorry waynelad, can’t agree; agents are never working for the seller – they’re working for their hip pocket.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Marc, be careful.
Your first investigative trip is not tax deductible. Only trips after you purchased can get deducted. However you can claim the initial trip against the capital gain when you sell the property.
But this is really for the accountant to determine.
And a few hundred dollars initial investment can save you a lot of headaches, heart aches, money and painful memories.
Apart from this I agree with Wayne. As long as you are aware that the REA is working for the seller, you can use them to your advantage.
Sitting next to them in a car gives you a very relaxed, chatty atmosphere where you can learn a lot about the region. I believe they are a lot less guarded and you can build a good relationship.
Yes, they are working for the other side, but that does not make them enemies. If you go into the hardwareshop or the pharmacy you are in the same position. Still I will still take the advise of the salesperson on board when making my decistion. It does not mean that I leave my brain outside and swallow everything that they dish up.
Ultimately the REA and I am in it for the same thing: To make a profit and feed their families.
All that said, I would always cross check important information that comes from a doubtful source. But any information that gives you a chance to look at something from a different angle is good information.
[biggrin] Thank you for all your imput and encouraging words.
I’m looking at Kalgoorlie for my first investment, as it seems to have a lot of potential for expansion from the local mining companies, which means more homes are required for their workers to rent.
Unfortunately I’m unable to buy straight away due to finances which will be available by June 07.
But I am doing a lot of homework on this town at the moment so I’ll be ready when the time comes.
It sounds a very practical to look locally for my first investment, and then move onto Kalgoorlie.
I will also check out that book by “Margaret Lomas”
Once again thank you for all your time!Darren
[email protected]
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