Hello
In trying to find cashflow positive deals, I seem to find good deals that require a plane ticket to be able to get there to physically view the property as none seem to be where I live(Sydney). I guess I am seeking advice re: how essential is it to view the property if you have done adequate research – valuation etc and arranged a building inspection. I am worried that otherwise I may accumulate considerable costs in checking these properties out.
I know I sound completely green but thought I would ask the question in the hope of getting some advice.
Thank you in anticpation
Amanda123
Have the valuer and builder seen the correct property? I heard of one scam where an owner of a flat who was wanting to refinance borrowed another flat in the same building, changed the number on the door and got the valuer to inspect that flat.
Personally I like to get a feel for the neighbourhood etc. A house might be “good value” and built well but there might be difficulties in tenanting it or later resale if it’s out of place in its area.
Maybe you should select one area, get a few properties and then fly out and check them out. At least you’d reduce the number to be valued/inspected or might be able to identify some undervalue or other potential. Also you can do a number of minor things when you inspect eg check all windows work,doors shut properly, etc which might mean you save an inspection fee on something that looks good on paper but isn’t as good as the ad.
Also you can interview some potential managing agents etc.
Hey. What a great idea, changing numbers on the unit doors!!
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I only invest near in the surburbs near home. I am an investor not a gambler. And I dont want the hassles of being an out of town landlord.
Check out this post –
https://www.propertyinvesting.com/forum/topic/14205.htmlI dont want this to happen to me. As someone told me when your not in town, you are the first to be used. Agents look after the locals first (they are the ones who speak face to face at an agents office), repairmen know your from out of town and charge you more etc.
I would not do it. But thats just my choice.
Hi Yack
I take your point and read the forum you directed me to. Yes it put the fear of God in me!, it worked. But is that being too conservative?? The place I was considering was a commercial property and to be honest the kind of return it offered far exceeded the sort of return a Sydney commercial property would offer. When you read about people’s property portfolios and their great success stories they seem to have accumulated property all over Australia from New Zealand to Newcastle eg: the feature story in last month’s property investing magazine. Maybe being such a beginner as I am, it would make sense to stay closer to home but then I feel that I am not going to end up with anything, well nothing thats cashflow positive anyway. The other thing is that I guess trips taken to look at investment properties can be a tax deduction… maybe a small consolation!Cheers
Amanda123Personally, I would prefer to buy something close to home, even if its negative geared. Owning property is a real eye opener. I learnt a hell of a lot from my first investment property purchase. I would hate to do one interstate and get burnt by the experience not to buy property again.
Anyway your choice I suppose. If you know the other area very well eg you grew up there I might try it. But unless i had plenty of time, I would not buy on positive cashflow terms alone. As for commercial property – you really need to do your research. High returns comes with high risk.
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