This Is How I purchased My Interstate Investment Properties.

LOL, any investors and inspectors here wanna be friends?
I'm sure a carton of beer (from ALDI or Costco) is fair for an inspection between friends ay!

 

Cheers Rixter

 

not a worry, happy buying,

 

Thanks Rixter. Sounds like good advice.

 

I would also like to share my experience buying interstate, and most of you might don't agree because most of my friends don't agree because all my interstate properties I've never visit them personally ever

Assuming you already done your macro fundamental analyst and is now down to a more deep down approach.

Step 1: Call as much real estate agents as possible, ask them about the property they are advertising and ask them which street you should avoid, after a number of phone calls you'll be able to get an idea of how's the suburb like.

Step 2: Go on Google map and search for the address you're interested to buy, pay very close attention to both street view and from the sky view, I personally find using Google map I'll discover more things than going in person because you'll get carried away easily when you are physically there, By using the top down view from Google map can also show you how's your neighbours are like (you can look at how their back yards are like and your surrounding houses how their front and back yard looks like, check if there are some street with a lot of junks at the front yard), than use street view to look around the area, this usually give you a pretty detailed view as the camera captures more image than our human eye.

Step 3: Go to the local council website and check out some of their future projects and also check they that area is in a high risk area by using the council map.

After I done all these and the numbers still stacks up, I'll than start making more strategic calls to sus out the agent and start putting in offers, by that time you'll have probably more knowledge than most of the residents there.

Some might ask me why don't you go there and inspect the property yourself? my answer to that is if it is obvious defects, usually the photos will show and you always ask the agent is there anything that need to fix upon purchasing, the hidden defects you'll find out during your DD via your building & Pest report.

And than some might ask you if you never been there how would you know if you like it or not? my answer to that is if I go there and look at it, I will just turn back and go home. Property investment is like business, if you put too much emotions in it you are digging yourself a deep hole. You need to remember that different people have different needs, some places might look dodgy to you but it's heaven to the others, don't limit your opportunities.

And basically after all these you will just do your normal proceedings just like you buy any property such as getting your solicitor to look at your contract and deal with the vendor solicitor and get your loan approve from the bank.

 

You've already posted location details in another thread.

 

Thanks Rixter - a great systematic approach to investing.

 

I'm happy to go and look at places if I'm in the area.

 

Great post rixter! I got the local paper when i was in Logan and found a fair view listings that were not online and dont forget to take a phone charger

 

One tip in relation to booking motel or airbnb accommodation, make sure it has wifi access.. You'll be surprised these days how many still some dont.

 

A great approach Rixter and very thorough!

Although I would argue that most people won't be able to allocate the amount of time on the ground as you do.

I recently purchased in Brisbane (northern suburbs) and like you did the macro DD in the months prior but only had 1 weekend to do the fun stuff. I rounded up a shortlist of 10-15 properties (during the week) to view on the Saturday. Spent the Saturday night in the hotel room going through each property (pros/cons/$$) and then on the Sunday conducted 2nd inspections on a few followed by offers.

 

I've tried this before and got myself into a bit of trouble and learned my lesson. I think the one thing to add is if buying property sight unseen is to ensure you get the right team around you, e.g property managers and solicitors and potentially investor friends who live in that area.

Though IMO I still wouldn't buy something unseen as you may miss out on other opportunities in the area that you wouldn't see online or hear from an agent if you were physically driving in the area.

 

It can be a strange feeling, but it's an investment, there really isn't a reason you physically need to see it. If the numbers stack up... But you're right, you do need a certain amount of trust in the people you choose do the work for you.

 

Quite a few times, the property I thought I was buying wasn't the one I saw in person....a few reasons why I go up for each purchase:

- If there are multiple offers, you might get the edge as you have seen it in person
- Network with the agents
- Deceiving pictures. This can work both ways. Most times the property is in worse shape but a few times they are actually than expected
- Check slope of block. Found a few times, it's hard to tell from Google Maps

If I am working on a deal, I normally

1. Start negotiating with the agent
2. Send through my property manager to suss out the work required and take lots of pictures & videos
3. If all checks out and we are close to a price, I fly up and lock in the deal

Before this if you haven't been to the area, suggest spending a few days just to get a lay of the land.

Hope this helps,
Michael

 

Here's the thing, once I had done my Micro DD on the areas I identified from my Macro DD, subsequent trips to those same suburbs required less time on the ground because you already know the area very well.

 

I'm now up to 9 purchases from interstate (well overseas actually). Ideally I would have liked to inspect in person but due to circumstances it wasn't possible.

However, it has made me be a lot more systematic with my analysis and takes the emotions out of the purchase. I'm also hopeless with anything tradie so me looking at the properties probably isn't that helpful anyway.

 

Hi Khoa,

That's awesome! I would love it if you could please share your experiences and how you purchased 9 properties from (is it Singapore)?

Thanks

 

Well done on your 9 props....yes, systems in place creates a cookie cutter approach which takes the emotion out of it for sure.

 

Love your work Rikster, thanks for sharing!!!

 

Glad to help littletee.