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Buying interstate (VIC) IP using a BA

Discussion in 'The Buying & Selling Process' started by devank, 19th Jun, 2016.

  1. devank

    devank Look, lets just get on with this, ok? Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    728
    Location:
    Inner West - Sydney
    We have finally decided to bite the bullet and use a BA (@Jake Milne) to find a suitable IP for us.
    Why Melbourne?
    1. Seems like a good idea :)
    2. We don't have any IPs in Mel.
    3. I can never time Melbourne.

    Why BA?
    1. I don't have the local knowledge.
    2. I can't practically spend time inspecting properties.

    Budget: max of 700K
    Requirements:
    1. As close as possible to Melbourne CBD
    2. Easy to maintain house (Eg: no pools)
    3. Good quality tenants area
    4. Close to 5% yield
    5. Better quality than an average but lower than median price for the suburb
    6. Close to Transport, schools and shopping

    Let's see how this plays out :)
     
    monalisa, ellejay, Jake Milne and 7 others like this.
  2. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,456
    Location:
    Perth, Melbourne, USA
    can you try to add a deve site to your list? something where you can add value, prices in Melb continue to soar and deve sites in demand, middle ring is good as long as you are near rail. I like East.
    Not sure you could do this at your price point anymore? @Jake Milne should know
     
    Last edited: 19th Jun, 2016
    devank likes this.
  3. samiam

    samiam Well-Known Member

    Joined:
    5th Sep, 2015
    Posts:
    527
    Location:
    on my way
  4. Jake Milne

    Jake Milne #1 Buyers Agent, Vic. Business Member

    Joined:
    1st Jul, 2015
    Posts:
    159
    Location:
    Melbourne
    Still possible but quite far away from the CBD at that price point. Suburbs like Frankston, Frankston North, Seaford you can still get 900+ sqm on a busier road for $500k-$600k with enough margin for 3 Townhouses and a bit of profit. First time developers also are looking towards the north in areas like Glenroy and Reservoir where a 900+ sqm site (with old house) is around$700k - $800k. Usually though I'd suggest having $1m+ to develop as it opens up better areas.
     
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  5. devank

    devank Look, lets just get on with this, ok? Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    728
    Location:
    Inner West - Sydney
    + Say 700k Construction cost.
    I was tempted to do a small TH development.
    But we can go bankrupt if anything goes wrong. We don't need that level of risk. Keeping the family safe is the first priority.
     
    ellejay, Jake Milne and RetireRich101 like this.
  6. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,456
    Location:
    Perth, Melbourne, USA
    you need large buffers if you go down this road, or alternatively you find a project where you can put together a DA and on sell. I mentioned one of the forum members here did this in Melb last week sold his DA and made a cool $500K in 9 months. I am hoping he will post this shortly.

    There are more than 1 way to skin a cat, but sourcing the right site at the right price is key.

    MTR:)
     
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  7. showtime94

    showtime94 Well-Known Member

    Joined:
    15th Jun, 2016
    Posts:
    115
    Location:
    Sydney
    How much is he charing u ?
     
  8. devank

    devank Look, lets just get on with this, ok? Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    728
    Location:
    Inner West - Sydney
    Ask him :)
     
  9. Kangaroo

    Kangaroo Well-Known Member

    Joined:
    21st Aug, 2015
    Posts:
    254
    Location:
    Sydney
    Jacqui Middleton @JacM helped me with a remote purchase in Vic. Great experience, very professional and very knowledgeable !
     
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