IP's for the time poor?

[Yupcember]

Hello all,
I've look around this forum at the wonderful advice. It's made me hungry, and helped me decide I can no longer be a lazy investor. I just didn't want my money 'tied down'.
I have 200k, in a garden variety high interest safe bank account and ad to it. It of course is being eroded faster then a levee in hurricane Katerina, by tax and inflation.

My situation is that I earn just shy of 100k, have no dependents nor even rent to pay, at the moment. I'm in a fly in, fly out job within the mining boom industry, doing seismic work over shallow waters, looking for the black gold. It's 6 weeks on, 3 weeks off...only giving me a window of time, less then 3 weeks to search, sign and complete the deal. Also property management would be impossible. Since it's an international company, there's a good chance I'll be on their projects overseas, soon. Having even less time in Australia.

I realise that most here, would do research and put in the time to find something worth while to speculate on. I'll probably have to pay for a property broker to find places for me, and pay an agent to property manage. Would you continue to invest in IP's if you couldn't do the time to research, look at the house, make on location decisions to attract renters and hope it's rented out? Would all the extra fees and lack of control make it worth while?

 

[alexlee]

You can use a buyers agent if you don't have time to research yourself. However, remember you don't have to 'complete' the purchase within the 3 weeks. You just have to decide on a property. Making offers can be done by phone and fax, and as long as you have a postal address, phone and email you can coordinate things from wherever.
Alex

 

[steveadl]

You'll have time to do the searching for the IP when you're here for the 3 weeks. Once you've found the deal and bought it, use a PM to handle all matters on your behalf. Doesn't really need much effort on your part at all if that's the way you want it - all you need is a phone.

By the time you go OS (if you do), you could have 1 or 2 'set and forget' IP's sitting there awaiting your return!

 

[Nougati]

Or you could look at DHA properties (Defence Housing). They have a fixed lease term and management is taken care off for you. On the negative: properties tend to be more expensive due to certainty of rental income, they may achieve a lower price in case of a forced sale and the management costs are also quite high.

I personally don't have any, but have looked into them in the past.

Try http://invest.dha.gov.au

 

[wylie]

What about investing in a place you know. We live in Brisbane and have always invested in the suburb or next one to where we live because they are good areas with good growth and we already know our values, so we don't need to due any due diligence about the area.

If you get a few agents looking so they have some properties to show you in that three week window, find a place you want to buy and get your solicitor started, with a six week or longer settlement, you can still be around for the settlement, though there is no need, as long as you can coordinate from where you are.

 

[sunshine]

I realise that most here, would do research and put in the time to find something worth while to speculate on. I'll probably have to pay for a property broker to find places for me, and pay an agent to property manage. Would you continue to invest in IP's if you couldn't do the time to research, look at the house, make on location decisions to attract renters and hope it's rented out? Would all the extra fees and lack of control make it worth while?

Seems to be quite a few cashed up and time poor people wanting to get into the game ATM...

As suggested there are many options to pay for somebody else to do a bit or all the researching and purchasing for you, or continue to ask questions here and we can help you narrow your search.

In my humble opinion I reckon the extra fees and lack of control (limited really) still make property investing worthwhile, of course it depends on the purchase and how well purchased etc.

Is there anybody that you know or work with investing in property? This forum is a fantastic resource, but if you are a bit time poor, seeking out someone that you see on a regular basis and "picking" their brains can sometimes point you in the right direction.

Sunshine

 

[Yupcember]

Hello all,

Thanks for your thoughts, views and opinions.

I see that 3 weeks can be enough for search only, and using an agent(PM) to complete the mundane stuff of contract. I thought you might need access to a justice of the peace, to witness your signature, but I suppose you can have clauses in the contract, to wait for your return, to continue the paper work needed. This will mean you have less leverage as a buyer, as no seller wants to wait for their money (who blames them).

Thanks for pointing me to that DHA site, Nougati. Yes they do seem expensive for what they are, but since there is less risk (a real guaranteed rent income), the potential for capital gain is reduced. But like any investing, the safer it is, the less return. Something to consider.

I really don't know Brisbane, Wylie...placed it in my profile because it's where I'm holidaying with family. I grew up here, but it's a different city now. Having an agent or two look and show for me, rather then trying to do it myself sounds like something logical I should have thought of earlier. After all they get the comish!

Thanks for your thoughts Sunshine, about the extras one will pay, unable to do it yourself. I chatted to a friend who's more in the know then I am. He suggested co-ownership. No one will invest in a dud with you...at least if they're investing in the same thing as you are.

I'm about to head off back to work, some what wiser.....thanks.