I imagine that most first-time investors buy in their own "back yard"… the (pshychological) reasons for this are understandable - low risk and high comfort, lots of caution… but an increased possibility of accepting mediocre yields or growth compared to properties in other locations with better performance indicators.
I have not yet bought my first IP, but hope to shortly. In my head I have accepted the fact that the best performing properties are probably not in my back yard. I know that Buyers Agents exist, and that they have been used successfully by others to select "non-local" IP's with better performance … and also that this might be a route to accelerating investment success, but...
I just cant get my head round it!… buying and running a property, for example in Melbourne, when living in Perth? It just seems improbable! I'm sure others feel (and fear) this too?
I'm really interested to know how the practicalities of inter-state IP's work? Presumably property managers do everything, and therefore this relies heavily on finding a very good, pro-active property manager? Is it possible to phone up your PM and say "I just bought a place… go fetch the keys and rent it out… sort anything that needs sorting..." and expect all to go smoothly. Just sounds so fraught.
Does this approach limit the investor to properties which have lower maintenance (newer units for e.g.)?
Ultimately, I'd love peoples thoughts on the scenario of a first time investor (like myself) with around $350-$400K to spend, buying an interstate property using a Buyers Agent. Is this a "seasoned investor only" strategy? Does it justify the extra expense at this buying point?
Cheers, Sam
I have not yet bought my first IP, but hope to shortly. In my head I have accepted the fact that the best performing properties are probably not in my back yard. I know that Buyers Agents exist, and that they have been used successfully by others to select "non-local" IP's with better performance … and also that this might be a route to accelerating investment success, but...
I just cant get my head round it!… buying and running a property, for example in Melbourne, when living in Perth? It just seems improbable! I'm sure others feel (and fear) this too?
I'm really interested to know how the practicalities of inter-state IP's work? Presumably property managers do everything, and therefore this relies heavily on finding a very good, pro-active property manager? Is it possible to phone up your PM and say "I just bought a place… go fetch the keys and rent it out… sort anything that needs sorting..." and expect all to go smoothly. Just sounds so fraught.
Does this approach limit the investor to properties which have lower maintenance (newer units for e.g.)?
Ultimately, I'd love peoples thoughts on the scenario of a first time investor (like myself) with around $350-$400K to spend, buying an interstate property using a Buyers Agent. Is this a "seasoned investor only" strategy? Does it justify the extra expense at this buying point?
Cheers, Sam
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