Some Noob Questions

I'm very new to the IP game and I'm after some advice from those of you that have been around a while. We are currently looking for a property to buy as an IP for our SMSF. We have around $570-$590k to spend and are struggling with finding where to buy.

1. How do you get early notice of properties? I've been looking at listings online, but it seems to me as soon as the majority hit realestate.com.au or Domain.com.au they are already 'Under Offer'. Are there better sites? Should I be talking to agents?

2. I notice a lot of people use myrpdata.com.au and apm.com.au for info; do you pay for the premium service for your research? Is it worth the subscription cost?

Thanks so much in advance for any help you can offer.

 

Building rapport with local agents and by being on their database may help.

Some agents simply list property because they charged client "marketing Money" despite having property under contract proior to listing. Keeps client happy and free advertising for agent and agency itself.

Yes, apm reports are paid service. However, there are few free report providers. Check out BoQ app.

 

Thanks. Have d/l, will have a look.

 

Talk to agents, if you have already bought in an area or appear to be a serious buyer they may also give you advance notice of properties prior to them being listed.

 

On your questions

1. Constantly be on realestate.com.au. If there is something good, be ready to move on it. Go to the open homes every weekend. Nothing beats in person research. If it's sold, ask the agent if they have any stock coming on the market. Come across as someone who is ready to buy if the price is right. Over time as mentioned above, you will build rapport with the agents.

2. Can be good to give you a guesstimate on the price. Over time you will have a better read of the market than those reports. The reports are good at becoming background information on the property, like last sale price, how long it's been on the market, what it was listed for etc etc

Best advice is to hit the pavement. When you first start, it will be hard to know what to look for what over time this will refine.

Most importantly, have a goal. What are you looking for in the property, what are you trying to achieve in property investing, what is your end goal?

Once that is answered, the rest will fall into place.

Hope this helps,
Michael

 

Hi Jeah -

Trust you are well.

Congrats on getting your super moving!

When investing in property through an SMSF be aware of certain restrictions, the obvious is you cannot live in the property and you cannot lease to a related party. Further, you cannot improve a property subject to a borrowing and generally there are restrictions on development of SMSF property. Obvious, but be aware of these restrictions before you choose your property.

Further, if you are borrowing to invest, consider the LVR that can be achieved, SMSF Lending is subject to change and aim for a 70% LVR for resi and commercial property. Important to understand your borrowing power before you make a purchase i.e. obtain a pre-approval.

In terms of choice - most capital cities are hot as you know, so nail down an area and do you some research, this will take time particular if off market, if new property its a little easier.

If you want an established property, express interest with an agent and they will provide access 'early' for a pre-listing of a similar property. Of course if your borrowing make sure your bare trust is in place and seek advice, and then throw a 10% deposit cheque to the owner with an offer they can't refuse to avoid auction

If your rejected, then rinse and repeat, its tough and tests your patience, if you do not have the time for the 'hunt' get someone to do the hunt for you.

Hope that helps

To success.... Ivan