Hi,
Im a young investor who currently have 2 ip’s. I wouldn’t call them bad purchases but after doing alot more research post acquisition i defiantly think my money could have been used better.
I am now looking for properties that have as a minimum neutral cash flow. My question is around leaving my comfort zone and purchasing properties without physically being able to see them.
Currently, I have targeted one area in regional NSW and I am using targeted goggle searches to gain an understanding of the area. I use sites such as realestate.com to gain an understanding of property prices and potential rental returns. I podcast your money your call to hear discussions around different areas across the country. Currently my research is limited to these type of tools (and generally I like to focus on one area,which im not too sure is the right approach)
Im a chartered accountant and have no issues doing my own calcs, analysis etc, however like anyone else my time is valuable to me and always look for efficiencies. Do people suggest investing money in tools such as rpdata and residex, and if so which types of reports? Or are there other key things I am missing in my approachMany thanks in advance
Hi,
You can get some good free data from Home Price Guide (data from Australian Property Monitors). If you search on a suburb and then click on the demographics tab, you can see lots of info such as age group, birthplace, type of properties in the area etc as well as seeing some recent sales prices and median values.
I have also purchased a hotspotting report (Terry Ryder) previously for around $90 which I thought had some pretty good research in it and good ideas of where to invest. The report I purchased was actually based on regional NSW hotspots (such as hunter valley region).
Hope that helps,
Darren.
The thing with buying in areas you don't know or haven't been to is that you don't know the good/bad streets/parts of suburbs etc.
I did a lot of research on a town in NSW. Looked at 8 properties coming up for auction. Decided on 3 I would bid on but when I visited it was a different story. One place which the agent was raving about turned out to be a problem. As luck would have it the agentr couldn't take us there and a young apprentice took us and started telling us about the street brawls etc. The street was a no go zone. Agents wouldn't take the properties on their rent roll due to issues there.
I'm actually finding better deals in Sydney. I can do a quick reno and get 7.5% yield with increased equity. I wouldn't buy regional again.I know people buy sight unseen but I'd want to be familiar with the area. Houses can look lovely on the net and of course the agent will give it glowing reports. Tread carefully.
I would advise nutting it down to a few areas then go for a visit. Many people buy completely unseen but that doesn’t sit well with me…. maybe they have to much money…
You need to establish your investing strategy and then choose the areas you are interested in. Buying the hotspot national top 10 is a good place to start, Im sure there are a few posts on here which could point you in the right direciton for areas set to do well in the next couple of years.
Then just research research research.
You mention that you made a couple of bad investments. I feel if you do not get out there and stomp the ground you could be setting yourself up for another dud. If you don’t buy in a particular suburb this purchase you might buy there next and having already been there you know the area.
Thanks for the feedback guys
Regardless of what you see on a brochure or computer screen … grab local knowledge.
Spend some time talking to a realtor about the area you wish to invest in. Ask the questions.
There wont be anything that tells you a property budgeted at 150k isnt right next to welfare morons who will harass your tenancies .. and when your tenants dont want to live there anymore .. strip the property of any valuables. That .. you will have to find out on your own.
The good the bad and the ugly of a property can only be determined by walking the street .. and talking to the locals.
Priceless advice and yet most people dont even ask for it.
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