FAQ: How do I buy in a different city?

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

  1. Rixter

    Rixter $uper Investor (Retired)

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    Rav,

    I live in Perth and invest in Brisbane property. Have been doing so regularly since 2003.

    I do my macro due diligence from here in Perth via internet etc and fly over for a period usually 7-10 days to conduct my micro due diligence.

    If you want to know finer details feel free to PM me or we can chat live via msn messenger. Just click on my contact details.



     
  2. stockt12

    stockt12 Member

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    did you use a local agent rixter?

    how did the bank[which bank if possible] handle the transaction?

    how smoothly did it all go?

    what obstacles did you have to overcome?


    i've got a number of areas outside the goldcoast where i'd like to purchase... been there many times too.. just need to "get it going" :)
     
  3. Rixter

    Rixter $uper Investor (Retired)

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    Stockt12,

    Yes I book air fares, accommodation & hire car online then fly over usually for a period of 7 to 10 days.

    In that time I get out & about in my chosen areas identified by my previous Macro DD. Then inspect everything that meets my purchasing criteria at the Micro DD level.

    If I see a property that exceptional I will put in an offer there and then, otherwise I will bring all my micro & inspection notes back to Perth, then over the next weeks pick the best of the crop and make an offer remotely from here.

    The offer/contract process I conduct by phone, fax, email & registered express post. Once an offer is accepted a signed contract copy is forwarded to my mortgage broker to get the loans process under way. We have a number of brokers we use. Last purchase we used our broker here in Perth but on other occasions we have used our Brisbane based broker. Geographically it doesn't matter where your broker is based. I have no loyalty to any one lender - preferring to spread lenders.

    I also immediately forward a copy of the signed contract to our Solicitor to start their side of the conveyancing process. We always use a Solicitor / Conveyancer that is located locally the state the property purchase is in because they are familiar with the settlement process system for that locality.

    I then organise the relevent contractors / agencies required in relation to fulfilling our contract conditions / requirements , such as independent valuers, building inspections, pest inspections etc etc. Once these requirements have been met satisfactory to myself I then notify my solicitor of such and the solicitor liases with my mortgage broker to take the contract through to settlement.

    Over the years we have found the whole process to run fairly smoothly. With each subsequent purchase you learn from the previous ones so you can fine tune the way you do things along the way. This kind of stuff you dont learn form text books. Its hands on practical experience where the nuts & bolts learning is really acquired.

    The biggest obstacle that needs to be conquered in your own thinking. Basically its the having the courage to over come the fear of stepping out of your comfort zone to things that are all new and foreign to you. Are you doing things right, what do you need to do next and the fear of losing are all thoughts you will have to move through to succeed.

    At the end of the day once you have moved through these barriers that stop the majority of people you will think to yourself that it wasnt as bad as you thought it was going to be. Chances are you will be revved up wanting to do it all again - I know I was.

    As per my signature - You dont have to get it right you just have to get it going!

    Hope this helps.

    PS , msn me and we can chat live if you like. Its always great to network with other local Perth investors.
     
    Last edited: 4th Oct, 2008
    Bantam Roosta likes this.
  4. stockt12

    stockt12 Member

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    Absolutely brilliant. Thank you very much.

    As soon as I come back from my trip there, I will contact you for further advice [don't want to waste any of your time] before I make my purchase.
     
  5. rav

    rav Rav

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    Thanks Rick. Will add to my MSN list.
    Quick question, what is "micro due diligence"??

    Cheers
    Rav
    ThePropertyDomain
     
  6. Rixter

    Rixter $uper Investor (Retired)

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    Rav,

    Sorry for the delay in answering, i've just stumbled across your question.

    Micro due diligence is my research inside the immediate local area to where the property is located (ie quality of housing nearby, distance to amenities/infrastructures etc etc) & the specific property attributes (ie type of property like house , townhouse, villa etc, number of bedrooms & bathrooms, spaciousness, comfort like AC/Heating etc, and security for their belongings including their vehicle.

    Hope this helps.
     
  7. gismo

    gismo Member

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    Haha,

    I'm from Brisbane and feel Melbourne is a better bet which is why I joined this forum...one of us will be right, or we both could be right...time will tell!

    I'm very interested in reading people's thoughts about where to buy...I'm planning to purchase in about 6-12 months.
     
  8. Sonny

    Sonny Member

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    I Work & Live in Brisbane

    Hi there,

    I sell New Transportable homes on brisbane's northside and can offer a bit of advise.

    At the moment there are a few vital areas that are growing.

    Caboolture in the Northern suburbs is currently grown very fast and still has a lot of growth to come yet of the next 10 years.

    After Caboolture the next growth area seems to be Gympie, it is slowly starting to go ahead, but cheap enough to buy land and put a house on or buy house and land. It will be the next biggest town up the coast.

    From there, although there is speculation that mines will be closing in central qld, there are still many opal mines and so on, which there still believes to be a shortage around board for accommodation for the miners.

    I hope this of some help to you. You need any assistance, feel free to let me know.

    Sonny
     
  9. michaelws

    michaelws Member

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    You can go through websites so that you clearly get an idea of what to do. You can also contact the agents directly or through phone. Never stop with one agent, keep inquiring with different persons so that you can fix up your mind on one particular property investment area.
     
  10. redlake2

    redlake2 Planet Denise

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    I buy in different cities and locations

    I like to buy in different areas as it is not always an advantage to buy the best deals locally.

    I do all my research via the internet and telephone calls.

    There are heaps of things that you can do to get all the information yourself.

    Check out Google street view, you can even have a look at the address and streets around the house just like you are driving down the street in a car. Unfortunately google missed a few streets but it gives you a really good idea of the location.

    go to google maps, type in the address, click search maps, then click on street view if a small photo pops up.

    Hope that helps.
     
  11. s.w.i.s

    s.w.i.s Member

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    Hi All pro's,

    This is my first time here and as i read all your messages, a questions come to mind that perhaps one of you can answer.

    Can anyone suggest a Pre-Purchase Check-List for Buying Interstate Investment Properties?

    Thank you in advance.
     
  12. BayView

    BayView Member

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    The best place to look is in Margaret Lomas' books - the latest one is called something like "20 must ask questions for every property investor".
     
  13. Perp

    Perp Member

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    In answer to the thread title:

    Ensure that the city in which the property you're buying is located is different to the one in which you live? :confused:
     
  14. JCM

    JCM Member

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    RE's that act as buyers for a small fee

    I noticed in one of the posts that MJK mentioned that he developed a relationship with a realestate agent that acts as a buyer for a 2.5% fee.
    I was not aware that this practise is legal, as it sounds like a great idea to have someone (an agent) especially if purchasing interstate or in an area you are not familiar with to source properties for you for a small fee.

    Could you also inform me what is the average fee paid to agents that source properties for potential buyers? and how do i approach an agent about all this?

    Regards
    John
     
  15. Rixter

    Rixter $uper Investor (Retired)

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    John, they are commonly known as 'buyers agents'. and have been around for a few years now. Fees vary but 2.5% is a ball park. Alot require an upfront fee to cover their DD costs then a balance worked out on % of sale price.

    I personally do my own DD, organise a air ticket, accommodation, car hire etc and fly over myself for 7-10 days to make inspections and offers. Basically all up I can cover all this for under $1800 which isnt really coming out of my pocket as its paid via equity from my LOC funds (OPM). :)

     
    Last edited: 10th Sep, 2009
  16. Dazz

    Dazz Banned

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    I suppose it's all relative.....people's definition of "small" does vary.
     
  17. JCM

    JCM Member

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    Yes it makes good sense

    Thanks Rixter,

    I guess it is a fact that no one is going to care more about your investments than yourself. So it does make sense to physically go yourself and research it all and gain knowledge and experience in the process, which in the end is what you are paying a buyer's agent for. And if you end up picking a bargain then the costs involved in the travelling and accomodation are somewhat insignificant.


    Regards
    John
     
  18. ozfutures

    ozfutures Member

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    BIS Shrapnel projections - growth till 2012, Melbourne, 19%, Brisbane, 15%

    BIS Shrapnel had this segment on TV in Brisbane with the Late News a couple of days back. Melbourne will fair better by 4% till 2012 compared to Brisbane.

    Adelaide is tipped to grown 23%, Sydney by 20%?

    Here's my question: who are some of the best value for money builders in SE Melbourne - Frankston, Carrum Downs area?

    Ozfutures

     
  19. pinotedesco

    pinotedesco Member

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    Have you ever thought of using a buyers agent that is experienced in buying property in that area? Also some buyers agents can assist you form an overall strategy rather than just purchasing help.
     
  20. Propertunity

    Propertunity Real Estate Buyers Agent

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    No, it is not illegal for a real estate agent to act as a buyers agent. What is illegal, is taking a commission off a seller as well as taking a fee off a buyer of the same property.

    It would be better, in my view, to use an exclusive buyers agent to buy for you. i.e. one that does not list and sell as well.