All Topics / Help Needed! / Buying property unseen

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  • Profile photo of god_of_moneygod_of_money
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    @god_of_money
    Join Date: 2008
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    Hi All,

    Just want to ask.. has anyone ever bought the IP unseen (i.e. not physically seen the property)?
    If yes, what is/are the hiccups/pitfall/problems that need to watch/avoid?
    Could you please share your experience?

    Thank you

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    i have previously bought about 10 unseen. But now I probably woudn't do so again. You need to get a feel for the area and see the surrounding houses and parks and whatever else is there. Otherwise who knows what you could be getting yourself into. Getting a mate or a building inspector etc to look at the place won't really tell you this info.

    I think I was just lucky that I had no major problems

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of JimmyJJimmyJ
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    @jimmyj
    Join Date: 2007
    Post Count: 49

    Anyone who’s read any of Margaret Lomas’ books will know she is a huge advocate of buying a property site unseen. She believes it stops you from making an investment based on emotions rather than research.

    Not sure if i could do it myself, but then how do you buy in different states? Go on ip junkets around the country?

    Anyone else with good/bad stories?

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
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    No matter how remote the location, I find that it is always best to do the inspection personally for all the reasons outlined by Terry. There are things which are discoverable by your own due diligence (demographics, distance to schools, shops, parks, hospitals, universities, transport etc) however other things ie intangibles are often only uncovered by personal inspection and some meetings with locals eg a couple of tradies, property managers, council, community elder etc – yes it may mean some personal attachment ie the place has a good feel to it however it is then up to you to confirm that the numbers that you have worked on really fly.

    Profile photo of god_of_moneygod_of_money
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    @god_of_money
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    Terry,

    How do secure the regional property deal? I am talking about population more than 20,000.

    Scott,
    You can always look at from the google earth and streetview. I am trying to secure a property in the regional city.
    I am not sure whether I should fly to see the property or not. It will cost me at least 400 dollars fly in/out.
    The rental return is about 10% which is okay and not far away from the base hospital

    Cheers

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    God

    Never buy rural!

    unless you want a farm.

    if you really want one, then you should inspect it because of the extra risks involved.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of god_of_moneygod_of_money
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    @god_of_money
    Join Date: 2008
    Post Count: 970

    Terry, how can you find the cashflow positive in the big cities?
    What is you definition of rural? I am talking about regional cities…

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    I classify anything not in the major capitals regional (if it is in a city), rural if it is in a town or less (village/hamlet).

    As for spending $400 on flights, how does that compare to the rest of the cost of purchasing & the risk of not spending $400 to find out?

    Profile photo of suavemechanicsuavemechanic
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    @suavemechanic
    Join Date: 2004
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    Ok heres a view from the opposite end of the scale….
    I have been interested in Emerald ,Black water and Rockhampton for some time
    so i got a job out here , moved my family etc
    and had a good look around
    and after 9 months we are about to move back to the coast
    having kept my hands in my pockets !

    i know its the LAND  that goes up in value but it its the house that rents out and pays the mortgage
    i like to walk around the neighborhood and check out both

    AND I wont negotiate unless i can see the other party s eyes
    how else do you know you are getting the best deal  ( or is that not important ? )

    If you are an investor $400 and a hotel room will be nothing in the long run
    if you are a gambler  cut out the middle man and slap it on black or red

    good luck either way !
    cheers !

    Profile photo of suavemechanicsuavemechanic
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    @suavemechanic
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    ps you might find its such a good deal you want to buy two….
    then how would you feel having only lined up finance for one  ?

    cheers !

    Profile photo of v8ghiav8ghia
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    @v8ghia
    Join Date: 2005
    Post Count: 871

    Hi GOM – I have, but must admit would not if I did not know the area a bit (Had an idea of the general lay of the land when we bought one property sight unseen) and always got a building inspection (and pest too – although not needed in Tassie!)
    We did put in an offer a couple of years back on a place sight unseen, and got a building report which came up with too many issues for our liking. ….it was tempting to think 'if we dont buy we've wasted $400……but as pointed out in the above posts, a small price compared to buying a dog and regreting it long after the pain of losing a few $100 bucks has gone.

    Cheers

    Profile photo of god_of_moneygod_of_money
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    @god_of_money
    Join Date: 2008
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    Thanks for all the inputs…

    What  I mean is… each inspection will cost about 400-500 dollars… I guess that if it is only one inspection.. then that is ok..
    How about 3-4 inspections… in the regional city ( don't like to buy in small town).. it will cost a fortune.. plus time consuming as well.

    I am too scared to buy unseen.. despite the figure/google earth/rpdata etc……

    Profile photo of suavemechanicsuavemechanic
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    @suavemechanic
    Join Date: 2004
    Post Count: 106

    if it was easy ,cheap and simple everyone would do it

    can you not go there for a weekend ( on frequent flyer points )
    and look at a bunch ?

    then send the inspector around to the best couple having done a "  two for a discount "  deal ?
    or make your offer subject to an inspection being favourable and book it after

    i asked a guy for a deal once based on the fact he lived in the suburb and would not have to travel far
    he was surprisingly receptive to the idea

    cheers !

    Profile photo of god_of_moneygod_of_money
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    @god_of_money
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    Post Count: 970

    Well.. I am thinking about flying to Albury to see some of the properties before making the commitment..

    I went to see a property (main house with 2 bed granny flat) with good return but short of expectation after inspection.
    Lesson learned.

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