I live in Sydney and I have so far found that all the positive cash flow properties I find are interstate or a hell of a drive from Sydney.
What steps can I take to ensure that if I am going to buy interstate (or somewhere I cannot physically go and inspect) I don’t end up with a money pit and a bag full of costly problems?
Cheers
seanjHey Sean,
I am guessing you have taken a position on the price of the house and you think this is worth pursuing for whateveryou investing reason!Here is what I do.
Once you are signed up with your 10-15 day due diligence clauses intact…
1. Grab the internet and goto http://www.yellowpages.com.au
2. Check out at least 3 realestate agents and get rental return inspections and also ask them what they think could be done around the place to possibly increase the rental return.
3. Get a price on those repriars /upgrades to establish your costs if you should decide to complete these recommendations.
4. Get a well referred property inspection company (try finding one through this site or the yellow pages).
5. get a full inspection report done with Digital photos to show al rooms and exteriors and good and bad points (unlike the real estate photos) – Typically $280-550 depending on locations
Evaluate your inforamtion and make a decision if you are to proceed or not.
This has a lot of risk … if you are not experienced with purchasing properties and looking over dozens of property reports …. as with experience you will see what the standard reports look like and the “alarm bells ringing” reports look like. Just because the report comes in unhealthy… does not mean to write off the deal… you have another negotaition point to discuss with the vendor/agent…. “photos speak a thousand words!!! and once you have shown an agent … they had to disclose these faults with any oher possible buyers as this is now a disclosed fault.
Anyway best of luck!
Cheers
KiwiThanks for the advice Kiwi. I feel more like I can look more seriously at these opportunities now I have an idea of how to proceed.
Cheers
seanjSean Jenner
You might be able to use a buyers avocate to check out the property on your behalf and buy it on your behalf.
Yup good Idea Duckster…. I find opportunities and if I can’t find a buyer … I take the deal myself!
All Positive cashflow though …. I just can’t see the point in digging a hole for yourself …. especially if your risk is too high and you are just starting out….“Play hard but play it safe and use you head not your braun”
Cheers
Kiwi
[baaa]I found a property a couple of years ago that was a great deal. I needed to act very quickly – seller’s market back then. I got the Yellow Pages and tracked down a local builder. I transferred $200 into his bank acct and got him to go to the property with his mobile phone and talk to me as he walked around it. Not an ideal situation, but it turned out to be a good investment.
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http://www.depreciator.com.auHi Sean,
I have bought properties sight unseen 3 times and I just made sure I did alot of research and got professional people to check them out for me. Here’s a few suggestions-
Call some different realestate agents/property managers to get more information on the area (as others suggest)
Download google earth http://earth.google.com/and see if you can view the property with it (use in conjuction with http://www.whereis.com.au)
Get an RP data or property value report on the property
Ask the local council about flood zones etc
Do a general internet search and find out as much about the area as possible
Do all of your number crunching on the cost and returns
Use good building and pest inspectors and ask them extra questions
Get lots of photos.
Get people to inform you about any huge towers, industry, sewrage treatment plants etc that may turn out t be your next door neighbour.
Todd Burns
http://www.freepropertyhelp.com.auThanks to everyone who have provided such a vast range of advice for me here.
I have no excuses [blush2] now but to get on with it!
Cheers all
SeanjSean Jenner
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