Buying interstate.

[tangychips]

I'm considering buying interstate as opposed to in Vic.

Obviously there are logistical issues but besides that what other pros and cons are there.

If someone has experience on this, please feel free to share.

Cheers

 

[danwatto]

There's been a few threads on it.

Personally I did it in Adelaide for a few properties but had the help of some good contacts there.

Just starting to do it in Brisbane, but with Adelaide as a learning experience I think it's best to do a lot of Saturday flights for alot of inspections. It's the only way to really get to know the market, as being online isn't enough to know what's good value when you find it.

Some buy sight unseen (I have too), but you need to have people there you can rely on to inspect it for you, and it's harder to gauge the correct offer amount and what due diligence you need to do.

 

[LeoT]

I have bought quite a few site unseen and my experience was that its NOT that hard.

First I like to research the market and learn as much as I can and get familiar with "my patch" im interested in. btw, I use RP data Professional and I find it INDESPENSIBLE.

Then once I have a good understanding of what im dealing with I like to (if possible) fly down and have a look at the general area for a few days (might buy at that time or buy following months)

For particular properties im interested in, I have used agents to take details photos for me and make it clear to them that im buying site largely unseen and if they take only 3 or 4 crappy photos its not likely im gonna be interested. Most agents do a decent job at taking photos, some cant be bothered and that's fine.

then its all down to B&P. Really by that stage you should have a good idea if you like the place or not.

RP data gives me all kinds of valuable info on the place, eg

1. what the current owner paid
2. Ownership..eg husband and wife, or single, or whatever...that actually lets you get into the mindset of the seller (very valuable advantage)
3. Lets you look at recent 12 months, 2 years etc sales
4. Lets you see the boundaries of the place, even how many meters frontage is etc (more so important for development)
5. Shows you how many days its on the market and how they have come down in asking price over time (again great negotiating advantage to have this)
6. Even often gives you the direct contact numbers of the vendors!!

you can learn all the above 1-6 in a matter of minutes and start to put together a picture and learn a lot.

ok ill shut up now too long a post

 

[D.T.]

Not really any different to buying locally.

- Go see the property if you need to see it, or have someone else go look at it for you. Depending on the deal, some of mine I've not needed to see.

- Be aware of each states contracts, settlement process etc. Plenty of info on this on these forums.

- Ask for contacts on things like B&P inspections, property managers etc.

- Everything else works the same as normal. Really matters little whether its the house next door or opposite side of the country. The PM is going to do their job and then send you the rent money either way.

 

[jpcashflow]

Hi

Hi,

Buying property in other states is pretty common. I am a mortgage broker from Melbourne and allot of my clients are purchasing in other states.
Just ensure that you organise a building and pest inspection and in most cases i would recommend you see the property your self - or appoint a buyers agent to help you out.

If you like a property you see, before making a offer get a local conveyancer to look over the paper work. Every state has different laws!!

Cheers
Johann Psaila

 

[ToGetProperty]

There are few threads talking about the procedure of buying interstate and I have contributed some of them.

Always easier to find a good deal if buying in the quieter market and much harder in the hot market.

 

[Peter_Tersteeg]

Lots of good suggestions here. Residex and RP Data are useful resources, but it comes down to taking the time to get to know the area you're planning to buy in and honestly I think you've got to get there and walk the streets.

This is something I didn't have time to do for our last purchase so I engaged a buyers agent. Given the time and cost it would have taken for me to get there and feel comfortable with the interstate location and eventually purchase there, I felt that the BA's fee was a bargain.

I also know other people have used a property manager they're already dealing with to get a pre-purchase report done as an alternative.

 

[Jamie M]

If you've got the time there's plenty of due diligence you can do from your PC. The property reports will assist - especially the comparative sales.

Call and talk to some local agents and PMs too. Get a feel for how the market is moving and what the vacancy rates are like.

Use google maps or similar resources to scope out the look of the area.

When you're ready to purchase - fly in and inspect some properties in person.

Cheers

Jamie