On another note how do you buy interstate (appreciate there is a sticky covering this topic), it seems difficult to do without understanding the area well and having the deep local knowledge, not just the figures...
How long do you typically spend doing due diligence and getting to really know an area? The way I look at it I could easily spend another 6 months researching an area and save 5/10k or buy now pay market price but take advantage of the CG I would have otherwise lost out on - not sure if that's a risky outlook.
I moved to Brissy last October and had been researching for 4 months before flying up, I was shocked at how far behind Sydney it was. It took me 7 months of being up here before making a purchase, DD is hard to do interstate as each purchase really is a street to street proposition up here. In Sydney you could drive from Cronulla to Holsworthy before you notice a real difference in the calibre of resident up here it can 4 street in Wynnum for the same drop in socio economic comparison.[/QUOTE]
As an interstate Buyer , it's hard to have the depth of knowledge of a well informed local , However property investing is forgiving . You can still make money out of crappy properties . when the markets moving every thing goes up . Obviously the better you buy , the more you make .
We've moved on from the lower end of the market at the moment ( might go back ...) .
Like all things , the more you do it , the better you get .
When we started buying interstate , we had check lists which we'd fill in so we could compare properties etc .
Now , we can eliminate most properties just by looking at them on the net and google earth etc .
Then we spend lots of time talking to the agents / PM's about places to a avoid etc .
When we look at properties , WE ALWAYS GO IN THE AGENTS CAR . Makes it easier to look at the area , and another opportuinity to pick their brain.
Last trip , most of the properties we looked at were possible . One we eliminated because we realised the road was a cut through road and a couple because the layouts didn't work that well . Just a matter of seeing which we could negotiate the best deals on.
Spent two days looking at properties in Manly / Wynnum and ended up buying three . One has ended up renting $20 less than what we were expecting , but that's the only hitch so far . My wife had spent the day before looking around sandgate / brighton , but preferred manly / Wynnum . I trust her judgement ......
I'm sure someone locally , who spends all their time looking at property could have bought better , but I don't want to spend all my time looking.
Cliff
