What are the most important things to be aware of buying outer state? Obviously I’ll be researching the suburb, organizing an architecture inspection and pest control report. What else…I’m thinking agents could do nasty tricks to me [thumbsdownanimHi Porsha.
i would suggest you get as many recent comparable sales as possible , even buy a local price guide via http://www.domain.com.au. Prices can change by suburb and even by street.
Look at as many properties in the one area as possible to familiarise yourself.
What makes you not want to invest in your local area?
Hi Porsha. Just remember that each state has different buying proceedures/processes as far as making and accepting offers, gazumping, conveyancing (whether you have to use a solicitor or not) and other issues, as well as stamp duty and land tax rates etc. among other things. Make sure you check that out first depending on where you are looking…sorry if that is overstating the obvious, but was not sure how much you have looked into it. Yeh, NSW sucks the worst, makes you wonder why we live here. All the best.
is there any particular reason you are looking interstate?
cheaper?maybe moving later?better capital gain?better rental?
its always easier to buy closet to where you are residing as u know the market,can check on the property,
i have had friends move out of an area in the country and rent the property and come back a couple of years later and ithe house has been trashed.
if you live close you can always do a drive by and inspect regularly to check on your investment.
good luckMake sure you get an independent valuation, and a building check(i dont know what they are called, dam!). That would save having to go to the actual house as the valuer can tell you alot.
Also make sure you use a independent valuer and if you use one that is assigned from the bank you are recieving finance from they can sometimes be dodgey.
Note:I have not yet bought an investment property and am only 17(18 in 6days). So keep that in mind. Though I do show genuine interest and over the past 15 days I have read 6 and a half investment books(2Kiyosaki,2Jan Somers and 2 others).
I also advise you to read this book by Chris Gray called go for your life. Thats where I got the info about the independent valuer.Also whenever you buy a property you need to get a value done on it to see if you are getting a bargain, you dont want to find out later that you paid more than it was worth, when you could have found one that was underpriced and snatched it up. Hmm ive gone off topic here. Well good luck with your ventures outer state.
Christopher.
Thanks guys I’ll have to jot some of that info down.
Basically I’m not buying local because I live in Perth, I cannot afford Perth and my money has the ability to go a lot further elsewhere. There’s a larger selection of properties, higher quality etc and not to mention higher rent. I have in mind Brisbane or Adelaide at this stage. Of course this unfortunately means sacrificing my $7000 first home owner’s grant…[baaa]
Hi Posrsha
It is not a bad suggestions to stay local. Even thought the Perth market is booming, there are still pockets or opportunity, and you could even consider north or south or Perth.
I reside in Sydney, but have read a number of articles in Aust Prop Investors magazine about areas north and south or Perth. Even some bargain areas not to far from the CBD (units need refurbs) If you can get hold of some back issues they are worth the read for some food for thought and may provide an avenue for researchinf your final decision.
Despite what some people may say given in some states there seem to be a lot of doom and gloom talk, there are plenty of opportunities all over the nation. Seek and ye shall find!
Good luck, but a lot can be said for investing close to home, particularly if this is a learning curve for you. Perth is not too close to any of the other capitals and costly to fly to the eastern states compared to Syd-Melb, Syd-Bris, Bris-Melb.
Cheers
SImon CHi, before you give up on WA totally you may want to check out the forum entitled mining towns (afew days back)
I used to live in WA and it’s only 6 hours drive to Kalgoolie and maybe another 45 mins to Boulder…just make sure u do the speed limit through the little towns as they pick on city plates!
I wouldn’t recommend Mt Magnet! and Karratha is about 16 hours drive (very pretty!) from Perth. I would avoid Port Hedland no matter how good a deal sounded!
Good Luck, Kerri
[happy][buz2][build]A helpful tool for checking out remote locations is http://www.earth.google.com. I don’t blame you for looking outside of Perth the yields are generally VERY low. Prices have risen fast and it will take quite while for rents to catch up.
Go to the reports page of my website to get the latest information on the micro property cycles for each major city and regional area in Australia. Base your decision on real data analysis.
Todd Burns
http://www.freepropertyhelp.com.auHi Phorsha
I agree with Todds advice that wherever you look you must do your ‘factual due dilligence’ but also remember that your future tenants will be living in the area you choose.
I spent six years driving an extra 200ks to get to the maccas in Karratha rather than subject my kids to the interesting Port Hedland! and the eldest had lived in Kal. No-one looking solely at the figures could understand the Pilbarra mentality, thats why so many of the ‘fly-in/fly-out’ kids are lucky to last one tour!
However, what I really mean to say is that you will need local ‘Human” input wherever you choose to look and travelling interstate is expensive. Perhaps you have trusted friends interstate who can get the ‘street goss’ for you but remember you can’t really blame them if they miss something (unless you have paid them according to a contract or made them a partner in the investment). The only way to get a feel for a place is to physically visit it, an agent won’t tell you if the current owners are leaving because of the people two doors down holding all night parties.
As a ‘hold’ property the potential rental in rural WA is (subject to due dilligence & dumb luck) often enough to outweigh the smaller & potentially non-existant capital gain. It really depends on what type of investment property you are after.
Funny how GWN shows major takeaway ads followed by ads for Perth motels…
Wishing you well, Kerri
[happy][buz2][build]hey phorsha,
i understand there can be a bit of fear when buying interstate, fear of the unknown, perhaps you want to think about using a buyers agent until you get to know certain areas? They will provide you with all the information everyone has suggested, and more, enabling you to make a better informed decision.
I know a good one if your interested!
Otherwise, just make sure you research as much as possible, you can never have enough.
Good luck!Originally posted by Phorsha:
What are the most important things to be aware of buying outer state? Obviously I’ll be researching the suburb, organizing an architecture inspection and pest control report. What else…I’m thinking agents could do nasty tricks to me [thumbsdownanimIf you’re worried about realestate agents, a good buyes agent could assist.
You can also interview several Property Managers to find one you like, then get them to look at the property you decide on (they will be manageing it anyhow).
A good broker can also ensure that you dont pay too much for the property and act as a checking mechanism.
Look at the different Real estate institute web sites as many contracts are different in each state.
Get lots of photo’s of potential IP’s and start building upa file on your suburbs till you know “more” than the locals
Who will do your conveyancing etc..start pre-planning?
Do the sums and projections…………
“Money is a currency, like electricity and it requires momentum to make it Effective”
Online Positive Cashflow and Renovating CalculatorsIn a nutshell, time is not on my side. I work 6 days a week, basically I just need a foot in the door. I need to know what suburbs to stay away from and what ones to seriously consider. I’m looking Adelaide (city) and Brisbane (inner bris/city), 2-3 bedroom townhouse (or unit f the right one presents itself), pretty simple really but easier said than done!
Something like this is what I’m looking at, what do you guys know about runcorn?
Hi Porsha,
I have a house in the suburb next to runcorn. It’s about 20 mins drive to the city on a good day or 40 mins in peak hour. There are several schools there and shops close by. It is very close to both main motorways (M1 & Gateway) which connect the Gold Coast & Brissie + airport. As for the demographics, it is mainly families with a medium to lower income, but by no means the wrong side of the tracks. It had a bit of growth around 2002-03, but I think there is plenty of room to grow in the near future.
Alotti
Thanks ‘Aloti’, didn’t realize I had another reply to this topic. I think buying in a suburb such as Runcorn and others with an ‘average’ sort of reputation etc is the way to go; ideally I want a townhouse because of the minimal garden and maintenance etc but the corporate body fees chew up a whole lot of profit. I am amazed how different things are compared to here (perth). I will be keeping my eyes open the next few months for any bargains which may appear!
[cigar]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
