FAQ: How do I buy in a different city?

Discussion in 'Where to Buy' started by MH7604261, 17th Aug, 2004.

  1. Lil Skater

    Lil Skater Member

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    Hi everyone,

    Lozza, not necessarily do you HAVE to have some one else. If you do enough research and look around you don't have to have someone (because they may know what THEY are doing but may not know how to help YOU. If you know what i'm saying.). You can very easily do anything i think on your own, in the sense like making and growing your profile,managing your own company or achieving a goal or task. But on the other hand it could come in handy sometimes to have a person or two maybe three to help you along the way.

    Diamondsalways-you're making some good remarks...i think i'll take note for when i'm older :p

    focusdev-i do agree i think that "they are enticed by the fact that they can purchase a brand new 4 bed 2 bath DLUG BV for under $300K and still get rent off around 5% on the purchase price"...but they might think it is a good deal, and it's not but then again i could be wrong i'm not in QLD am i??? As the average price for a new house in Sydney is huge, they will see these deals in QLD and think whoa and invest.

    cheers little skater...
     
  2. alexlee

    alexlee Member

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    Blind trust is, as always, dangerous. You don't need to know everything but you need to know enough to realise when the 'expert' you're depending on is actually competent. With a bit of study you can pick up basic law, accounting, tax and so on.

    Little Skater, I still can't believe your age. You know more about investment than most people who own property. Compared to most people, you might as well be another species (in the good way). Keep it up! And remember the rest of us when you become a zillionaire and sit back on your own island. Or when you buy NSW and declare it as an independent country (the Republic of Little Skater). The scariest part is that I think you can really do it.

    I wonder what will happen if in the future I start teaching my kids capitalism from birth?
    Alex
     
  3. lll

    lll -

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    i agree with you mate

    all i was saying is that not everyone knows it all, and its always good to have some wise people around you who are "informed" in the particular areas you are interested in so you can then bounce your ideas off them and get feedback:)

    Many people make mistakes by doing things on their own, when they could have got advice off others.

    Cheers

    Lozza

     
  4. skater

    skater Capitalist

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    It is a little scary isn't it. I think she can too.

    Not from birth Alex, more like the last few years & even then not really that much as being a normal teenager talking to the Parents is always boring. She is like a huge sponge, it goes in, but never seems to come out. I hope it stays that way.

    She gets her kicks out of showing that anyone can do it, you don't have to be old or have much money to get started you just need a can do attitude.
     
  5. dedfred

    dedfred Wannabe Property Guru...

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    My 2 cents worth....

    Hi All,

    This is a great post...I started reading it because I'm in a similar situation as MH. Residing in Sydney and trying 2 buy in SEQLD is crazy (in a nice way) :confused: , I've spent the last 2-3 months checking out properties for sale (online), talking to REA & even speaking to buyers agents based in Sydney, getting more info every day. I feel like I’m having a QLD information dump. :eek:

    Even though I've never been to QLD it now feels like I know the place a little better. However, is it hard to pick a spot or what???

    Each time I think I've got the right choice (in choosing a suburb) someone, something chucks a stone in my smooth running wheel and its back to the drawing board. :mad: I guess I have myself to blame as well as I’m possible being a little to cautious as it’s our first IP.

    The great thing about this post is where u guys have included trusting that 3rd person...which is so important. Especially for a 1st timer its extremely difficult to establish that trust...I guess the world we now live in has taught us not to trust another human easily (sad isn’t it). In most of the previous post's I've read I've only heard 'Trust yourself & nobody else' its good to know its OK to include Mr. 3rd person...now its just a matter of finding this person and establishing this trust factor.

    Just to give u some more info I'm closely looking @ Morayfields, Murrumba Downs and Forest Lake (based on Residex figures)...if u guys are happy with the REA ur currently dealing with and find them trustworthy and working with his clients needs (not his/her $$$) PLEASE provide a few details....I'll buy u each a 6 pack when I meet u guys.

    & 14 year old sk8ter....AMAZING!!!! did I say AMAZING!!! I'm gob smacked. Nice very nice...hope my 3 year old and 1 year old grow up to be as such. BTW no six pack for u :)

    All the best MH…hope we both make the right choice for the 1st IP :)

    Thanks guys
     
  6. alexlee

    alexlee Member

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    Dedfred, would you mind posting some of those 'stones' people have been throwing at you? Are those warnings / comments coming from investors who have made money from SEQ property? Or just people who don't have property and just like to talk?

    You shouldn't take advice from people who haven't done what you're trying to do.

    As an aside, in some of the discussions on Perth, people are saying how former 'slum' suburbs are recording 30, 40% a year gains.

    I remember when I first started buying Brisbane (when I worked in Sydney) people asked me why I was investing in a backwater like Brisbane. When I worked in Tokyo and spoke to a few guys from New York about property investment, they asked me why I was investing in a backwater country like Australia!

    The point is, trust your research. You don't have to get everything absolutely right. Make a few mistakes, and refine your technique. Buy cheaper properties, and buy often. Make sure it is at or below the median for the suburb, and make sure you can hold it for the long term even with interest rate rises, vacancies, repairs, etc. Can't go too wrong doing that (and you'll certainly do better than if you didn't buy!)
    Alex
     
    Last edited: 8th Jul, 2006
  7. lowb

    lowb Member

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    From a general perspective... investing in another city, for me, would involve these steps

    1. Step one: selecting the city

    -what sorts of things do you look at when selecting your city?
    -how do you compare it to different cities?
    -what sorts of references and data do you use?

    2. Step two: selecting the suburb

    -what sorts of things do you look at when selecting your suburb?
    -how do you compare it to different suburbs?
    -what sorts of references and data do you use?

    3. Step three: selecting the property
    -do you have to use a buyers agent?
    -looking on the internet can only provide you with limited images/data, and I dont trust the agent who is trying to sell the property...
    -do you use organisations that recommend IPs
    -is it possible to organise rennovations on that IP?

    Step four: organising the transaction

    -all the bits and pieces like
    --loan, conveyancing, mortgage, inspection, etc.
    --how do you do these... by email/phone?
     
  8. Sargeant

    Sargeant Member

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    Licenced Agent Brisbane

    If you are looking to buy in Brisbane, Tell me what type of Area would suit ie distance from the CBD or Gold Coast and also land sizes and other ammenities. If you can give me a price range I can send you in the right direction (trust me I am a Real Estate Agent) even if its not in my area.

    I will give you an honest opnion.

    Thanks

    Aslam Sargeant
    0408 730 295
     
  9. johnno

    johnno Member

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    How do i buy in a different area

    Medine Sound advice Research is the key. Can i suggest a new property listing website called NMDDATA www.nmddata.com.au It lists all Mortgagee & Deceased Estate properties for sale throughout Australia.Theres about 50 or so listed around Brisbane Check it out. A lot of people have made a fortune buying these types of properties. Ideal to rent or flip.
    Johnno
     
    ozi likes this.
  10. Syvergy

    Syvergy Member

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    Websites like Our Brisbane can give a lot of great information on suburbs - not just the profiles (they are on there too) but also events, activities and information on facilities and services.

    The best way to find out about a city without going there, I've found, is to talk to long term residents (5-10+ years) and get honest opinions on different areas.

    Areas that may sound cheap and equitable on paper may not look so fantastic in real life.
     
  11. sailor

    sailor Member

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    Just one point about actually visiting another city to inspect properties. Think about lining up a few properties to view and organise for a few REA's to show you a few more, whilst you are there.

    The cost of flying up for a world-wind visit can be very cheap if you use FF points or some of the last minute deals offered by Virgin.
     
  12. Peter Parker

    Peter Parker Member

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    Listen by all means, but I woudn't put too much weight on this.

    There have been many areas that locals have despised but have gone on to produce good capital growth. Read Karina's story for a good account of this. And the best 'cheap areas' have gentrified and produced outstanding growth to the amazement of locals who are now regretting the chance they had to buy when houses were $50k.

    Within the cheapest suburbs you will find huge differences. Eg streets of dilapidated concrete houses with rubbish in their yards (which is what the local prejudices are based on) alongside streets of modest but neat brick houses available at bargain prices.

    Perceptions are slow to change, may be 5-10 years out of date and do not necessarily include nuances of streets as opposed to suburbs.

    However if I buying interstate and the better suburbs are only fractionally dearer, I'd possibly avoid the cheapest suburbs due to the higher value I'd place on something that's 'hassle free'.

    Peter
     
  13. West Coast-PI

    West Coast-PI Member

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    Buying interstate

    Buying Interstate is not as difficult as it seems. I have a some friends who are doing similar. We utilise Somersoft forums, regularly invest time reading PI mags and talk to a lot of Buyers Agents/Realestate Agents/Councils (town planners etc') and utilise realestate.com/domain.com/RPData/GOOGLE and a host of other www's - a lot!!

    I think it would be foolish not to visit the area you wish to purchase from, whether it be local/interstate or o'seas. Just follow a set criteria - I.e Are you after capital gains/positive growth? Are you basing your suburb location on strong data - % of home-owners/renters, ave weekly earnings, number of predicted future (im+migrants) residence - or on infrastructure changes etc' What ever your investing criteria these are the most important keys to your investment success. You can get your hands on this information easily using previously suggested material. Once you have this data narrow down on the specifics of each property - pre/post depreciation + close to schools/hospital/shops/parks + busy road? + large block etc'. I usually GOOGLE the suburb & just see what comes up (Qld has flooding in parts of city - BCareful!) - I check out Somersoft and ask Q (just like you) & would watch the market for a while & check out the ave number of days on market + ring estate agents and check out rent avail (rent ratio etc'). The data you obtain via phone is generally more important than the RPData as this dates fairly quickly.

    Once you have narrowed your search to a few properties ring up the agents and organise for a fly in/out trip. You will notice large power-lines, the number & style of new investments being built. ~Check out the quality of the area and then you will see if the area has potential...then the properties you examine will reflect their true value...Once you have found "THE ONE" you need to get BUILDING/PEST inspections + organise for a rental agent (we found one who took photographs for us and was present for the HANDOVER...saved us a return trip) + legal stuff + insurance etc' & so it is important to narrow some of these guys down also before you purchase....esp' if you are going to buy at auction as in some states these need to be implace prior to auction...but you will find all this out as you talk to agents etc' in the state you are looking to purchase.

    Anyways, good luck with your investing. Hope some of this information is of help. I would have to say the most important ingredient in all of this is to use your own head & not rely on buyers agents or anyone else to make final decisions because if you are from OTTA town you really can be led astray easily!

    Cheers
    WC-PI
     
  14. Peter Parker

    Peter Parker Member

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    I would agree with all that.

    I think it's very important to understand the urban structure of the city you're buying into.

    The best way of doing this is to understand your own city in detail.

    General trends like first homebuyer families on the fringes, older people and higher income childless closer in, posh suburbs near the CBD, river or bay/harbour, etc.

    But not all the inner suburbs are oldies and young singles or DINKS. The untouched parts of the Wakelin belt houses high income families with kids (and their soccer mums) where NIMBYs rule and trees meet above the street.

    A notch down are otherwise prime suburbs with less than idyllic streetscapes caused by a transition from houses to townhouses and apartments (a process started by the 1960s flat builders).

    Gays in the trendy inner around 5km from the CBD, and if there's a uni nearby, student share houses as well. Big political support for the Greens in these parts, but less greenery - trees don't grow on the narrow asphalt nature strips. These areas may have been gritty inner ex-industrial suburbs that have gentrified.

    Past the great middle-brow owner-occupied belt that characterises middle-suburbia, are the 1960s housing commission suburbs that remain cheap today. The latter are either filling up with Africans or have reputations of being ocker bogan hoon-holes with more plateless cars than places to park them.

    Equally if not further out are new high-priced developments with lakes and/or golf courses but precious few other services or infrastructure. Buy out here if you want to buy $300-400k houses for their big depreciation benefits but little else.

    Bayside or beachside suburbs 30 - 50km from the CBD were great low-rent places to get the dole while going to the beach, but tighter welfare and the appeal of coastal living have made these dearer and are changing their make-up.

    Every major Australian capital has suburbs like the above.

    Once you know where these are in your city, then it's easy enough to find equivalents in other cities. You can then make comparisons and spot undervalued areas across the nation.
     
    Last edited by a moderator: 1st Jul, 2007
  15. The Fisherman

    The Fisherman Member

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    Is there any way to find out the average household income for a suburb?
     
  16. Twitch

    Twitch Member

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    Go to here and then about half way down the page is a form to generate a free suburb report. This has income distribution, cap growth, population demographics and more.

    Enjoy. :)
     
  17. The Fisherman

    The Fisherman Member

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    Thats a handy little tool Twitch.
    Thanks for the tip :)

    Darren
     
  18. janskar123

    janskar123 Member

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    Real Estate

    It's better if you contact a good real estate agent to know the updates about your properties and to attend the auctions, because real estate agents know more about the property market.
     
  19. dennis

    dennis Member

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    Is it still wise to invest 3b t/h in Mackay

    Hi, as far as I know, coal & sugar are two highlights of Mackay. Is it still wise to invest 3 bedroom townhouse/house in Mackay in 2008?



     
  20. rav

    rav Rav

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    I feel the same......

    I live in Perth, the property here is too expensive, have visited Brisbane few times, my first impression was this is it! But i'm not is it practical to fly there to look for properties, have used the net, but its not same. :confused:

    http://www.thepropertydomain.com