Latest QLD Buy (in progress) - Some thank yous

Hi PChatters!

Brisbane purchase is on the way. It might not be my first purchase, but for me this is the first time I have done the entire process alone hence it is a big step (for me )
I have had a lot of help in from the members here and would like to take the chance to say thank you for helping to get me this far.

@Rolf Latham and ASAP Finance team – big thank you for the speedy responses and good loan rate I requested so many Residex report that I lost count, not to mention the countless emails.

@Lu Bracher – thank you so much for your insights and proactivity. I didn’t expect the amount of help you have given in regards of contacting agents, taking photos, checking the location etc. The process would have been so much more difficult without your help.

@Michael_X – thank you for your time for a coffee chat several months ago. It really helps talking to someone who have been there, done that. Next coffee should be on me!

@Steven Ryan – thank you for tolerating my random messages and the recommendations on solicitor

@Beanie Girl – you have been the sounding boards of everything SE QLD (and oh, Melbourne!)

@PChatters - those who I PM’ed and kind enough to respond, and those who take their time to response to my questions on PC.

The rest of the post is my experience – it’s a long post and might not be very digestible. Feel free to move on to another thread

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QLD buying process

This is what I experience in a nutshell

Pre-shopping
1. Equity access – I made sure this is all done and fund is available
2. Suburb selection, get a feel of price of the suburb
3. List of contacts – Property manager, Solicitor

Shopping
4. Pick the properties
5. Get contract of sale
6. Make written offers with time limit and conditional clauses.

The one I use:
a. 14 days finance clause
b. 14 days B&P
c. 40 days settlement instead of the normal 30 days as @Rolf Latham mentioned that 30 days will be too tight
d. Time limit 48 hours

7. Offer accepted, contract signed by both parties received.
On the same day, send the copy of contract to broker, confirm with solicitor, get insurance quote and arrange B&P

8. B&P done – localised termite damage, rotten wood and stairs need to be replaced. Negotiated some price off in exchange of B&P going unconditional

9. Finance – ended up needing extension of this clause as valuation was not on time. Combination of bank not being on time and agent wasn’t able to provide access.

The solicitor is on the ball on both B&P and Finance and on pretty much everything else

10. Waiting for settlement. Hopefully no hiccups!

Post Shopping (planned)

11. Arrange Termite Barrier and any other maintenance before the property is rented out
12. Rent it out!
13. …. thinking …

Note:

It looks straight forward as I list the process. However in reality

No 2 Suburb selection, started as a structured process that ended up all over the place. The suburb I first came up with, what I finally choose to target and what I ended up with is all different

No 4-6 was done multiple times. I had at least 5-6 listings where I requested Residex report and they ended up already under contract. I put 3 written offers out.

First offer - vendor expectation is not in line with mine. It’s an LMR zoned property next to bushfire and noise corridor. Prices all around the place only justify a low-mid $400K. Vendor want $500K+

Second offer - vendor changed their mind, it might also be the agent mislead me on the price vendor would accept

Third offer – accepted on the 2nd round negotiation. Third time's the charm It's a regular 3 bed property with ok sized land.

Note 2:

There’s no visit to Brisbane, so I buy sight unseen - albeit seen by valuer, B&P and Property Manager. I also use Google Street view to see the location of the property and how it looks on the front.

This might be scary to others, but it maybe beneficial for me. I am quite opinionated on how a live-able property should look like. If I see the place it person I'm not sure how dare I'd be to make any purchases.

There will be more updates. Feel free to ask Qs

 

Thanks for the template! Well done.

 

You've got everything except a pic of the house itself! Can you post a link to the ad?

 

Can I ask why this was?

Thanks for the post, good reading about the actual process. Sounds like you're quite happy with it and no buyers remorse!

 

Thanks @EN710

Congrats on your purchase. Can totally understand what you've gone through. Where did you start your search, and where did you end up buying?

 

Wait till I settle.

Oh wait.

No! Not to the one I buy. I still want to stay half anonymous.

But this is the one of the one I looked at http://www.realestate.com.au/property-house-qld-rochedale+south-120363237
This is the 2nd agent they use

I wish I can say it's technical, but mainly it is because I was indecisive and scared of making mistakes.

I did all the data based research and thinking of getting into the northern side of Brisbane (Bracken Ridge). Was stuck and totally not confident with my own research. I can't make a move at all , so see an kinesiologist, feel better, get going again. Then I talked to Lu and some Brisbane locals, this point me towards the Southern part of Brisbane, for better infrastructure.

Narrowed down to Rochedale South. Rochedale South has similar profile as mainly owner occupier’s suburb – with better transport and non-toll highway to city.

Stalking Rochedale South properties and kept getting into Under Contract listing. So I direct my attention to other nearby suburbs.

I'm not at that stage yet! But hopefully no buyer's remorse...

The loose research start last year (yeah... ). Seriously narrowing it down is on June (the all confused, I'm so scared process). Got my equity early September and going full gear - got into contract mid September.

Edit: Just reread and you asked "where"
First round: Bracken Ridge
Second round: Rochedale South
Third round: Underwood

Somewhere between first and second: Sunnybank hills, runcorn, brighton, redcliff

 

Why Underwood @EN710?

 

Is it disappointing if I said it's right next to rochedale south, on the other side of the highway?

Reasons:

• It's still very accessible in regards on transport
• Property price is within range, and unlike rochedale south where owners are expecting high high price for their listing, there's room to negotiate in Underwood
• Next to Eight Mile plains that has a lot higher median price
• Bunnings at the bottom, springwood shopping centre at the bottom, eight mile plain schools on top, 5-10 mins drive. So positioning wise it's perfect. For a suburb that doesn't have much school and shopping facilities under its name, it sure is has easy access to all of them
• Low no of public housing, better salary median
• New release land at the bottom left side is selling about as expensive as one with house
• Travel time to city via highway can be as fast as 15 mins. this is for a house 20km away on Google map.

PS. on phone. Sorry about the typos

 

Cheers for charing the process. I'm sure this post will be a great guide for others.

And no worries re: the messages. Always happy to chat with anyone!

 

Thanks Steven

I have just got some unexpected things coming out
Starting to feel the remorse hahaha
Will provide update later once I have clearer picture on what I'm dealing with.

 

LMR in Underwood? nice.
How many T/H can you build on it?

 

No the LMR was in Rochedale south. It's a medium density zone so I think you can build units on it (but I can't remember the details)

Actually - screenshot of the listing. The land is irregular shape. Considered under noise corridor zone, just right next to bushfire buffer zone.

Interested in buying @RetireRich101 ?

 

What will be the rental yield there?

 

Gross? Nothing amazing
Approx. 5% - 5.5%

 

Congrats on the purchase and going through the process - great list there! Great use of leveraging a team of fellow investors (via PC!) to your advantage. I find the network of likeminded contacts really assists in narrowing down and making an informed decision. Plus property investing can require a fair bit of resilience (your process shows its not always that simple) - bouncing ideas of others makes it that much easier.

 

Congratulations on the purchase !

 

Thanks for the post mate! Very helpful!

 

Congrats!. Its a good feeling stepping out of the comfort zone

 

I'm not sure about that

 

Well done.
Only problem with Springwood / Rochedale / Underwood is the car park that the M1 becomes every afternoon from about 3 PM. If they can cure that, it would help values and interest in the area immensely.