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Buying interstate without buyers agent

Discussion in 'The Buying & Selling Process' started by Boston george, 3rd Jan, 2016.

  1. Boston george

    Boston george Member

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    I'm a first time invester looking for some tips on buying interstate. I recently tied in a quick holiday to brisbane with searching a particular suburb for a property. I went through a few property's but there wasn't anything on the market that ticked all the boxes. Being from sydney I now plan on traveling back to brisbane in a few weeks for more inspections. I just wanted to know if it's common to make offers on properties without a inspection or if there is any other tips you experienced guys have that may help. Cheers
     
  2. Boston george

    Boston george Member

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    Or any other method I could use instead of constant travel ?
     
  3. Be Developer

    Be Developer Property Developer Business Member

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    • familiarize your self with area, suburb, good/bad pockets, etc
    • build rapport with Local REA
    • make offer over phone subject to a,b,c, etc.
    • inspect property during cooling-off period.
    • if not happy, cancel the contract(pay a small fee)
    • rinse and repeat till you get what you want.
     
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  4. JacM

    JacM VIC Buyer's Agent Business Member

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    Hi @Boston george

    @Be Developer has answered your question. The obvious question to ask yourself is how much money you will be spending on flights etc familiarizing yourself with an area and/or inspecting properties before the expenditure equals what it would have cost you to utilize a Buyers Agent. The added benefit being you get the BA's knowledge of the area, pockets to avoid etc, and you spend your leisure time on other things.
     
  5. Boston george

    Boston george Member

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    Sounds like a sound method, thanks for the help!
     
  6. beachgurl

    beachgurl Well-Known Member

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    I researched the area online for a little while, then when a property came onto the market that ticked the boxes I made an offer. I flew to Brisbane for the day when the pest and building was being done. I've done this 3 times. One of these times I used my due diligence provisions in the contract to back out.
     
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  7. Boston george

    Boston george Member

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    I have a lot of spare time as I work a 2:2 week roster and I find it exciting looking at property. I originally planned to use a BA, mainly because of my inexperience although I figured i may as well give the whole process a crack myself save a few dollars and learn a few things aswell.
     
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  8. JacM

    JacM VIC Buyer's Agent Business Member

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    Ahhh fair enough :)
     
  9. Tonibell

    Tonibell Well-Known Member

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    We have been through the same process twice (but had some experience from prior local purchases).

    The hardest part is narrowing down your search in terms of suburbs and property attributes.

    On the first one the first time we saw it was 30 minutes before the auction - the second we had viewed a few times and travelled up maybe 3 times overall.

    We definitely would not purchase without viewing a property first hand - but a lot people do..
     
  10. Boston george

    Boston george Member

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    I have definitely narrowed down my search and selected my suburb and feel I have a grasp on the good and bad spots. I guess it is just a personal preference then. If I had a few properties under my belt then mayb I would be a little more confident buying without inspecting, being my first I think I'll do the traveling.
     
  11. Michael_X

    Michael_X Mortgage Broker Business Member

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    If you are buying in QLD, make the offers conditional on X weeks B&P and Finance (usually 2 weeks).

    You can use those conditions to back out and get your deposit back. Don't pull out on the cooling off period as you don't get your $1,000 deposit back.

    If you are offering, here is a generic template I use:

    Name – Insert name to be on the contract
    Offer amount - $XXXX
    Postal Address – Insert your postal address
    Deposit - $1,000 on signing of contract by vendor & $9,000 on unconditional contract
    Finance – 2 weeks from contract date
    B&P – 2 weeks from contract date
    Settlement – 6 weeks from contract date

    Apart from that, you are doing what's needed. Nothing beats on the ground research, it's tough work and takes time but best way to get results. There are no shortcuts in life.

    Good luck!

    Cheers,
    Michael
     
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  12. Boston george

    Boston george Member

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    Thanks for the advice Michael,
    Just to be clear if I was to make a conditional offer, sign the contract and flew up to inspect the property I could use finance as an exit from the contract without incurring the 0.25% fee ?
     
  13. D.T.

    D.T. Adelaide Property Manager Business Member

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    Some PM's are nice enough to inspect the property for you and report back on it.
     
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  14. Boston george

    Boston george Member

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    How would I go about this the best way?
    Do I select who I want to manage the property and ensure them I will use their services if they are able to inspect property on my behalf?
    Do they usually charge for such a service ?
     
  15. Michael_X

    Michael_X Mortgage Broker Business Member

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    Yes, that's correct.

    0.25% is NSW purchases. In QLD, just pay $1,000 on signing of contract by vendor and then $9,000 on unconditional contract when both finance and B&P is passed. The $10,000 is usually the total of the agent's commission so as long as that's in their trust account (pending where you buy), they are happy.

    If anytime you decide to pull out because of finance or B&P you get your $1,000 back.

    When pulling out on finance, they may ask for a letter from the broker to show evidence. When pulling out on B&P, just pick something from the report - there will always be things to pick on.

    Cheers,
    Michael
     
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  16. jodes

    jodes Well-Known Member

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    If anyone is looking to purchase in Sydney from interstate, I would be happy to go and check out the place, take photos, look at the surrounds, report on the "vibe" etc (I LOVE inspecting houses !!)
     
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  17. Boston george

    Boston george Member

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    Thanks Jodes but I'm buying in brissy :)
     
  18. Kinnon Bell

    Kinnon Bell Finance Broker

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  19. Michael_X

    Michael_X Mortgage Broker Business Member

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    Hi Kinnon,

    $1,000 on a $300,000 is pretty close to 0.25% and tends to be the more common practice, perhaps different in Cairns or for more expensive purchases. What I am also getting at is not to pull out using the cooling off period as you lose the deposit but use the conditions ie finance or building & pest.

    Cheers,
    Michael
     
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  20. Azazel

    Azazel Well-Known Member

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    Hey @Boston george , also be aware that some agents will not be interested in someone who hasn't bought like this before, especially in a busy market. You may want to give them the impression that you have bought like this before.
     
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