Interstate investing

[rocko]

We are contemplating doing a small development/reno/subdivision interstate. Is it worthwhile doing when you cannot be there yourself? Will the costs of the various professionals & trades people dissipate any profits?
We would appreciate hearing the experiences of others who have done interstate projects. Thanks.

 

[rocko]

Any comments? Anyone? Positive or negative experiences ..... I'm happy to hear.

 

[Rixter]

Looking at the response I would think there is no one doing them interstate. Maybe due to logistical and financial constraints. What does your due diligence and number crunches suggest?

 

[westminster]

I am prepared to do it but haven't yet.
It would require doing as much homework as I would buying locally - ie ensure I know the design and development guidelines / requirements, learn about local councils, learn about the state offer and acceptance process.

I have no trade skills so I can't do the work even in my own state so will always need to pay.

You could use a BA who would often have some contacts for Reno work or source the site and trades yourself but I think you really need someone to oversee the work and check its done properly.

 

[tgan]

Hello Rocko,
I am in the process of cosmetically upgrading a property that is not in the state I live in. It was a bit hard to get my head around how I was going to achieve this, but once I inspected the house and decided on the trades, everything has fallen in to place. In terms of cost, maybe its cost me an extra $2k because I am not there to do some of the minor maintenance/ clean up stuff but I am ok with this. Also, the other trades, ie painter, floor sander, tiler, have whipped through their jobs pretty quickly. The key is good communication between your self and the trades, give all the trades the contact details of who else will be working in your house, and a plan of action and time line that everybody is aware of. Also, a property manager who is also up to speed with your plans really helps too. So far, its been good.
Good luck,
Tegan

 

[Blacky]

I'm doing one internationally. Well technically 'from' international.

I own in Perth but work overseas.
It adds a lot of complexity and slows processes, but it is possible. You have to rely on your team to do everything for you.

I would employ a good project manager who can do most of the leg work for you. I also lean very heavily on my brother, who is happy to do a lot of running around as he is happy to learn, plus it's not his cash on the line. But even he has his limits.

There are certain time you will need to be present, and regular visits are essential.

Though Im not sure why you would. Do you believe there are better deals interstate than local? If so, then why haven't the locals picked them up. You would also need to learn a new market, new local laws etc. not that this can't be done but it adds to an already complex process. Just be carefull.

Oh, and by the way, I won't make a profit from mine, and it has cost me 5 years of lost opportunity. A costly learning experiance.

Blacky

 

[Blacky]

Hello Rocko,
I am in the process of cosmetically upgrading a property

I should note that my project is bigger than a cosmetic upgrade.

 

[MTR]

We are contemplating doing a small development/reno/subdivision interstate. Is it worthwhile doing when you cannot be there yourself? Will the costs of the various professionals & trades people dissipate any profits?
We would appreciate hearing the experiences of others who have done interstate projects. Thanks.

Hi rocko
I am from Perth and completed reno and other stuff in Sydney, Melbourne, Gold Coast and in USA.

I personally believe for the project to be successful its more about you controlling it/keeping tabs on the project.
My advice is to make sure that you always verify the information you are given to ensure that it is correct, it will come down to you doing your homework.

Also, it would be helpful if you can inspect the project, alternatively employ someone to inspect this on your behalf, this could perhaps cost $300, not a great deal in the scheme of things

MTR

 

[rocko]

Thanks for your replies. Interesting to hear of the variety of experiences.