How do you decide where to buy?

Discussion in 'Where to Buy' started by applesathome, 11th Jan, 2022.

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  1. applesathome

    applesathome Well-Known Member

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    I've been listening to different podcasts over the last few days, and one I came across was talking about researching properties for sales and ruling them in or out.

    The host was saying that before they even look at one photo, they scope out the area, and the actual house was the last thing they consider.

    It got me thinking how people here find properties to buy/offer.

    a) Narrow approach top down:
    Country > State > Council > Suburb > Street(s) > Property > Price
    Wait for properties to come up in your specific, more narrow areas then assess the deal.


    b) Wider approach bottom up:
    Price > Property > Suburb
    Happy to buy in a wide arrange of locations, if the price fits for the property. and your budget
     
  2. Noobieboy

    Noobieboy Well-Known Member

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    Whatever can afford as close to the city as possible. Surprisingly, seems to still hold even in COVID
     
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  3. Morgs

    Morgs Well-Known Member Business Member

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    Our approach when we put together our passive portfolio was more along the lines of A:
    1. Would do the macro level research to hone in on a general area (e.g. Brisbane-Ipswich corridor) and pick out some specific suburbs (we did this online).
    2. Jump on a plan to hit the ground and drive through each of the suburbs to determine if any suburbs should be excluded from the list (in person).
    3. Then go and look at as many properties as possible within that with view to short listing to 2 or 3 specific properties. We would then negotiate and basically buy the best property that we could afford with the servicing we had.
    It was usually a 3-4 day trip and would come home with a signed contract. Seemed stressful at the time trying to decide between property A/B/C but the compressed timeline forced us to make the commitment and in hindsight there were no wrong answers.

    Only other lens to add was going interstate as part of both diversification and avoiding too much concentration in NSW pushing up our land tax cost.

    When we buy development projects it is the opposite approach. All about the specific deal and how it stacks up in terms of feasibility.
     
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  4. PandoAndo

    PandoAndo New Member

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    I would pick a budget and find a positively geared property I can invest in with that budget. I only look at the numbers, if its positive cash flow for me and within my budget ...it wins
     
  5. Trainee

    Trainee Well-Known Member

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    How has metro Sydney looked to you in the last 10 years or so?
     
  6. applesathome

    applesathome Well-Known Member

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    I imagine part 3 would be harder in a hot market. Especially when some properties listed would have multiple offers within a day before you can even coordinate flights.
     
  7. applesathome

    applesathome Well-Known Member

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    Interesting, so do you consider CG at all? Or just looking at CF positive regardless of where/the type of property?
     
  8. Morgs

    Morgs Well-Known Member Business Member

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    Correct - if we take QLD at the moment often good quality properties are being sold at the first open so unless you've got pre-market access you need to be there at the first open.
     
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  9. inspiredbyprop

    inspiredbyprop Well-Known Member

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    I think we need a decision flow chart :)
    1. Main purpose: For investment or live in
    2. Property Type: (assuming residential) House, Duplex, Apartment etc.
     
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  10. Sackie

    Sackie Well-Known Member

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    Location:
    Vaucluse, Sydney.
    1. City cycle. Buy at opportunistic time.
    2. Identify demand zones within the chosen city eg coastal, distance to CBD etc
    3. Look for value/ripple suburbs in demand zones or near it. Talk to many players on the ground, forum etc to get a feel for the area and what's going on. This is the most time consuming step.
    4. Choose house which has add value potential in identified areas. Choose a type of house which has the majority demand for the demographic in the area.
    5. Negotiate one multiple properties as hard as the market allows for.
     
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