FAQ: How do I buy in a different city?

[Cammclellan]

Hi Guys,

Just joined so here goes my first question to you guys who know alot :

I live in Melbourne, but think that Brisbane will be a better bet over the next say 20 years.

Without flying up there 3-4 times to check out properties, attend auctions, what is the best way to do all your research when you can't be there in person yourself?

Can I really just go off web sites, then contact the agent and make a bid?

Interested in your thoughts

Here's a video I did when in Brisy recently. It shows what's required when investigating an area in a city you don't know. I ended up buying a couple of properties in the northern suburbs to add to the kids portfolio (hopefully they thank me one day). I explain what questions to ask when meeting with town planners regarding infrastructure. Both budgeted and unbudgeted (I also picked up a new high rise apartment development in West end and met up with Nic the new editor for Australian Property Invetsor magazine) http://openwealthcreation.com.au/ta...property-wealth-wod-work-out-of-the-day-ep-9/
You're not buying lollipops. You can't afford to make a $500k mistake. Do your research. Then buy confidently.
Hope this helps

 

[investra]

Never buy without proper due diligence;

+ Make a list of criteria that you require in the investment (price, cashflows, vacancy, type of house, your investment plans)
+ Subscribe to a tool like RP data and talk to real estate agents, council, fellow local investors
+ Make a visit to see the property before you buy
+ If you are time poor engage a good buyers agent

Remember 'make money when you buy, and not when you sell' !

Cheers
Jay

 

[lauranguyen]

Hi Guys,

Just joined so here goes my first question to you guys who know alot :

I live in Melbourne, but think that Brisbane will be a better bet over the next say 20 years.

Without flying up there 3-4 times to check out properties, attend auctions, what is the best way to do all your research when you can't be there in person yourself?

Can I really just go off web sites, then contact the agent and make a bid?

Interested in your thoughts

Hello,

Are you in Melbourne, i would like to buy a land - off the plan in Taneit< Could you please inform me about that area?

Thanks

 

[lauranguyen]

We believe Brisbane to be a market with a lot of opportunity. there are many very large infrastructure projects completed recently and more underway. the Brisbane market has been relativlely flat over the last few years and with simmilar population growt to the other eastern states we dont think it will stay like this forever. we have have made a strong commitment to develop more projects in Brisbane for this reason.

it is in my opinion important to form a selection criterea that meets your needs so you can invest in differing markets so you can spread your risk and and opportunity to ride the cycle. markets move at different times and are very rarely in sync. the criterea you formulate will not be same for everyone but there is obvious basis thing you may look for such as Employment, Population, Infrastucture, % of renters etc.

i have noticed a few posts with many people having all of their properties in one state such as Melbourne. i personally dont get this, as you would firstly end up paying a lot of land tax, and you would never buy another asset class such as shares in this way. not sure how many people drive past Telstra's head office every day because they have their shares, so why do we need to be close to our rental property?

in my opinion and from personal experience over the last 26 years, every capital city on the eastern seaboard is a great spot to invest. but of course do your homework.

Regards,
George Mariotti

Hello George

You are very knowledgebable on investing, could you tell me how is the melbourne market now, or even in 2 years time

Thanks

 

[Michael Murray]

Hi Guys,

Just joined so here goes my first question to you guys who know alot :

I live in Melbourne, but think that Brisbane will be a better bet over the next say 20 years.

Without flying up there 3-4 times to check out properties, attend auctions, what is the best way to do all your research when you can't be there in person yourself?

Can I really just go off web sites, then contact the agent and make a bid?

Interested in your thoughts

A buyer's agent is definitely the best way to help facilitate investment in other cities, or even closer to home. Buyer's agents don't have the same problems of potential conflict of interest that can (not always) arise from using a listing agent to buy property, plus engaging them usually costs you nothing.

Buyer's agents are also more specialised in working with buyer's to find exactly what they want in terms of location, returns, and capital growth. Buyer's agents should be experts in finding, valuing and securing properties, so there is really no need for you to be flying up and back.

I myself am a buyer's agent operating in Byron Bay, NSW so I couldn't help with Brisbane, but I am sure any specialist buyer's agent in Brisbane will be help make the process a smooth one.

 

[see_change]

IMHO , The best way to buy interstate , is to do the due diligance yourself ,and to get to a point where you feel confident about you decision .

With lots of reading , asking questions , I think you can get to that point within a couple of months

If you don't have that time , or lack confidence , use a BA , but you still need to do as much DD as possible so you know the BA is doing the right thing . You also need to make the decision on wher you want to invest and what type of property you want .

Any profession has its charlatans .

Cliff

 

[knightm]

IMHO , The best way to buy interstate , is to do the due diligance yourself ,and to get to a point where you feel confident about you decision .

With lots of reading , asking questions , I think you can get to that point within a couple of months

If you don't have that time , or lack confidence , use a BA , but you still need to do as much DD as possible so you know the BA is doing the right thing . You also need to make the decision on wher you want to invest and what type of property you want .

Any profession has its charlatans .

Cliff

Agree cliff. People need to choose carefully with ba's as any other major purchase. And with your first point - the property game is all learnable with dedication, time, focus. It really depends if someone wants to put in the hard yards over time to learn a second profession or not. Horses for courses.

 

[lila77]

Use a buyers agent either one based in the area or an expert in the area. This doesn't mean your don't do you due diligence though.

 

[INVESTU]

Thoughts about investing in Mickleham VIC

Hello

I'm a first time user to this forum and I was hoping to get an opinion on potentially investing in Mickleham VIC.
A description of the property is;
- Brand New
- 3 Bed
- 2 Bath
- Single Garage
- Almost all inclusions one could ask for
- $380k
- Rent $340p/w
- Land 330sqm

Appreciate your thoughts
INVESTU

 

[Rixter]

Hello

I'm a first time user to this forum and I was hoping to get an opinion on potentially investing in Mickleham VIC.
A description of the property is;
- Brand New
- 3 Bed
- 2 Bath
- Single Garage
- Almost all inclusions one could ask for
- $380k
- Rent $340p/w
- Land 330sqm

Appreciate your thoughts
INVESTU

What are you looking for it to do?

 

[INVESTU]

Hi Rick

This would be my first IP, I'm planning to hold it long term, looking for it to be as reliable as possible with appreciating in value, get stronger in rental return, and provide some depreciation benefits.
Thanks in advance for advise

 

[Rixter]

Hi Rick

This would be my first IP, I'm planning to hold it long term, looking for it to be as reliable as possible with appreciating in value, get stronger in rental return, and provide some depreciation benefits.
Thanks in advance for advise

Now ask yourself based upon your due diligence is this area and property likely to provide you with the specific CG, yield and depreciation levels you are looking for over your required time period?