All Topics / Help Needed! / Sight unseen purchases

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  • Profile photo of Shell HShell H
    Participant
    @shell-h
    Join Date: 2010
    Post Count: 32
    January 5, 2013 - 10:50 pm

    Happy new year everyone !

    Just seeking what your  thoughts and experiences were on buying properties without physically viewing the property, or the town? 

    If you've done it, what your 'rules' are, do you have a spend limit when buying this way? and has it worked out for you?

    We started investing in 2009 and have purchased all three of our investment properties without physically seeing them.  We were happy with the numbers, had building inspections and rental appraisals done before hand, however we were reasonably familiar  with the area. We have been happy with all three purchases, and have still only been in one of the properties!

    We are aiming to purchase IP4 & 5 this year, which will both be in different states to where we live, we've done a tonne of research on both areas and feel reasonably confident in our area knowledge. 

    I'm just wondering if I will budget some hefty airfares into the equation when determining amounts needed for purchases this year.  The other thing that concerns me is that I genuinely love houses and tend to want to buy every property I enter – I get a bit of a heart flutter and rose coloured glasses in even the dodgiest of houses!  So I wonder if I may be better off just looking at the numbers.

    Anyway would be interested in hearing other people's experiences and thoughts on buying like this.

    Michelle

    Profile photo of Tony FlemingTony Fleming
    Participant
    @the-dark-knight
    Join Date: 2008
    Post Count: 396
    January 5, 2013 - 11:12 pm

    I've bought a few unseen. I just normally ask the agent for a picture of every room from different angles and the building inspector will pick anything up. He knows what he is doing and I don't :) Apart from that street view will give you everything you need to know about the location.

    Tony Fleming | Triumphant Property Group
    http://www.triumphantpropertygroup.com.au
    Email Me

    NSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury

    Profile photo of Shell HShell H
    Participant
    @shell-h
    Join Date: 2010
    Post Count: 32
    January 5, 2013 - 11:23 pm

    Thanks for the reply Dark Knight – I agree about the building inspector knowing what he is doing and me not !

    And as for street view  –  yep thank goodness for google maps yes

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    January 5, 2013 - 11:27 pm

    In addition to a Building Inspection remember in most cases your lender will undertake a valuation on the property and they certainly wont be advancing funds if they don't feel it is worth the property provides them with suitable security.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Shell HShell H
    Participant
    @shell-h
    Join Date: 2010
    Post Count: 32
    January 6, 2013 - 12:22 am

    Good point Richard.

    In trying to eliminate this problem, we've been looking at relatively new properties, with tenants already in place and looking at recent sale prices of comparable properties.

    Would you recommend getting the opinion of another agent, or even obtaining a valuation of the property before making a purchase? or would this just be in extreme cases?

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    January 6, 2013 - 12:53 am

    Hi Shell

    A new property won't necessarily value better than an older one. There are a lot of different factors that come into play with a valuation that aren't dependent on the actual property itself – they include a number  of market conditions in the area such as the direction of the market, how volatile the market is and the local economy.

    Another agent isn't going to provide much of an insight into the value of a property that they're not selling.

    An upfront valuation is possible depending on the lender – but it might not be a good look from a negotiating perspective because you may come across as looking overly keen. It's just my opinion anyway.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Shell HShell H
    Participant
    @shell-h
    Join Date: 2010
    Post Count: 32
    January 6, 2013 - 1:04 am

    Thanks Jamie, yeah I can just imagine an agent telling me there is  a property just around the corner that is much better value – and just happens to be listed with him!

    Noted on the newer property and value increases not necessarily being superior.    I guess the main reason we are looking at those is depreciation and of course maintenance.

    Thanks so much for your thoughts.

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271
    January 6, 2013 - 3:25 am

    Whilst I don't think there is anything wrong with purchasing a property without seeing it – I do think its worth paying a couple of hundred dollars in airfares and a few hundred more in accommodation and inspecting the property. I did this twice (but didnt end of buying) but did make a weekend of it with my wife.

    Regards

    Shahin 

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

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