Due diligence in purchasing a property in Syd

That's only $2,500 on a $1,000,000 property - barely lunch money

We just had a Sydney couple buy a $900,000 property for investment. I was a bit gobsmacked, however they said that $1M gets you crap in Sydney.

SNM, please don't visit Brisbane and ask me to shout you lunch .... your view of a cost of a lunch is a bit above mine ... :)
 
We just had a Sydney couple buy a $900,000 property for investment. I was a bit gobsmacked, however they said that $1M gets you crap in Sydney.

I'm contemplating refocusing my efforts to under $1m now, $900k investment sounds good to me haha

I watched an auction this morning for a 4/2/2 house in Chatswood. Price guide 1.75, first bid 1.7, sold for 2.7.

What.

edit: more like 4/2/0 - it had no garage and you could only fit 1 car on the driveway without going tandem
 
In such a flaming hot market in sydney, how does one do their due diligence (pest and structural inspection) when purchasing a place. Properties get snapped within one inspection opening.. Literally one days time...

Is there anyone out here on somersoft who doesnt do inspection? Has this work out fine?

This is really a question about risk. If you are conservative, want your ducks in a row and to know what you are in for - then you get a good team together that can do a building and pest inspection at the drop of a hat and get your finance in order with unconditional finance ready to go. The downside of this is that you may miss out on properties as they get snapped up by risk takers (see below).

If you are a risk taker, you ignore all of the above and make an offer as soon as you see a property that you like/meets your criteria. Maybe you decide to use the cooling off period (if there is one) to do all of your inspections, get ducks in a row and get finance in order. If it all goes pear shaped then you lose a percentage, but you're a risk taker so you're ok with that. The downside of this is that there is the potential to lose money if you pull out of the deal, or you might lose money if/when you find out all of the problems with the property because you haven't done your due diligence. Could be expensive, or maybe not.. you could be lucky.

We purchased our IP in March 2014 in the inner west of Sydney. At the time the market was hot, not flaming hot like it is now, but it was still pretty heated. We are conservative but we had everything organised - we also had a Buyers Agent (best investment EVER!!!). We viewed the property for the first time on Saturday, building/pest inspection on Monday morning, offered on Monday afternoon, offer accepted on Tuesday, exchanged on Wednesday.

Good luck
vtt
:D
 
I've heard a lot of good things about buyers agents recently. Do they just handle the whole offer process for you? What do they do that you can't do yourself?

The buyers agents generally have two main options. One is the full search service where they source, shortlist, compare, offer and/or bid at auction. The other option is just make the offer/do the negotiating/bid at auction.

Some offer services on a more bespoke basis as well.

There are myriads of threads on here that talk about how they compare to a more DIY purchase option and what features/benefits they offer. They are not for everyone but in my view buying a property is a very big investment and I want to be properly advised and informed before making such a large purchase. To me, the BA that we used fit our needs perfectly, listened to what we wanted and got everything on our wish list whilst effectively managing our expectations. Money well spent imho.

vtt
 
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