NSW Facebook friend's first IP purchase...

So I look into my facebook and a friend on there is excited, telling us he exchanged on his first property today!

So there were a bunch of congrats messages etc...
Anyway I say, cool. Whereabouts is it and why did you buy it.... He says Moree.....

Ummm... Ok....
So I pm him and ask him does he have his cooling off period. He goes no, he waived it.... ummm... I asked, did your solicitor tell you to do that or the agent? He said he asked to do it himself!! I'm like whatttttt??? (Didn't say that of course). But I did say it was for his own protection...
Oh well...
Could be an expensive lesson....
#WeAllMakeMistakes?

 

Cheap lesson if it's Moree.

 

Definitely better than a mining town at its peak....

 

Cheap mistake mostly likely. Probably good cashflow if he has a reliable tenant.
Best you could say is it most likely won't stop further purchases but then again it might put him off all together.

 

And what did their solicitor advise?

Probably bought it site unseen too without a p&b.

 

Exactly. Hope for a reliable tenant.... I don't see capital growth unfortunately, population seems to have been consistently decreasing according SQM Research and vacancies are on the up. Still.... to be positive... heaps better than many other places?
(I still say.... run!)

I have no idea what the solicitor said, I only know he apparently decided to waive the cooling off himself by the sounds of it... he wasn't asked by the agent or solicitor...
I have no idea if he visited the area, I'll assume he had as a first time buyer.... but really... Idk... a quick internet search revealed nearly 100 properties on the market in the surrounds... it might not be easy to offload....

 

what is wrong with Moree?

 

What is his strategy? What is his borrowing capacity? If its cash flow positive then maybe that's what he's looking for rather than CG. An investor leans his trade by getting out there and doing it. If he makes mistakes along the way then that's part of the experience. Better than doing nothing I reckon. BTW I don't know this person at all but just looking at it from a different angle.

 

Bloody hell i don't know the bloke but feel very sorry for him. That's going to set him back years.

 

Hi Yson, there's a Moree thread on here, do a search.

Yes, his strategy was/is cash flow, but you have to get a good tenant. And hope you have an on the ball property manager... I think the expenses will be high as a percentage for the rental return though.
Cashflow doesn't help get you get to another deposit though if there's no growth....

Anyway... I'll throw it in a lesson learnt bucket.

 

Yes, years ago when I was looking at regional NSW it took about 2 minutes to discount Moree and I purchased in Orange and Tamworth instead. Regional can work but Moree doesn't pass any filter IMO. Too small, high vacany rates, no population growth, lack of economic strength and diversity. A centre in decline.
Strong positive cashflow regional places won't get you your next deposit quickly but they generally won't stop you purchasing again as the commitment is so small. He might learn a few things along the way without it the purchase being a terminal mistake.

 

Yep.

 

There are already 2 threads on here about Moree and the OP should drive up to look at the hot springs if he was going to buy there... Oh sorry .. His facebook friend was buying there
Moree still has potential but people are scared because it has a high Indigenous population and parts are Aboriginal Housing areas .

Yes Real estate agents there even if you ring up will admit theres a crime problem .

But it also is a tourism town with the hot springs.

 

Add em to the list of property investors who stop at 1 property.

 

There may still be other clauses in the contract he can use to bail out if he wishes. Such as the finance clause or building and pest.

 

I PMed him that question too... no reply...

 

Some need to learn their own lessons.
Doesn't mean we have to teach them or that they have to listen.

 

And I thank PC again for the comments and learnings I'm making through much reading (but not too much adding ). A link gently forwarded to said friend with an invitation to join the community now he's an investor! As said previously on PC, the lessons are best learnt and remembered when self learnt.

 

Some people will not listen or seek advice. It's their money so let them have it.

 

First a work colleague, now a Facebook friend.

Do you always stick your nose in other people's business unannounced?

pinkboy