This Is How I purchased My Interstate Investment Properties.

Discussion in 'Investor Stories & Showcase' started by Rixter, 21st Jun, 2015.

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  1. KDP

    KDP Well-Known Member

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    I'm in Singapore now, was in Vietnam previously where the bulk of the purchases were made. Nothing really extraordinary to it:
    - macro research, reading forums to see areas of interest;
    - talk to agents and other investors on the ground for their views;
    - look at lots of listings and compables using PF;
    - ask for lots of pictures and ask lots of questions;
    - pick the best of the listings and negotiate;
    - B&P reports and PM inspection where possible
    - buy, cross fingers and move on the the next deal.

    A lot of my purchases have been the boring 2 beds/1 bath brick units in a small block, there's not much to them and pretty easily assess from afar. Have bought a couple of houses as well and those require a bit more work and reliance on the B&P and other people to inspect for you. Main thing for me was just to get on with it, accept the risks of buying sight-unseen and manage it as best as possible without letting it stop me from making acquisitions. At the end of the day, the risk of missing out on opportunities was a much bigger risk to me.
     
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  2. ross100

    ross100 Well-Known Member

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    Hi Sash
    how come you are getting so low cost on a Total turnkey build cost is 180k on single and 235k on double is this your own builder or companies like Metricon.
     
  3. Bayview

    Bayview Well-Known Member

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    What about if you are a D&G'er?

    Do all of thew above except point 3.

    Instead; then argue black and blue how wrong they are and how the crash is imminent. :)
     
  4. sash

    sash Well-Known Member

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    Sorry...the total cost on the 3 I currently looking at are about 295-312k.

    The land is 115k, 124.5k, and 126k. I bought smart lots anywhere from 256 - 280 sqm. People poo poo these lots...but I buy them in quality estates and put 14 -18 sqm homes with a small backyard. The rent returns are great and good renters and my research also shows these also sell for only about 10-15% less than homes with much more land with equivalent homes.

    I also fit them out well. The build cost is coming in anything from 175-185k...turnkey..exactly that everything A/C, landscaping, clothesline, mailbox, antenna, flyscreens, lockable windows, etc.

    I only use large builders usually at least 800 plus homes per year.

     
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  5. ross100

    ross100 Well-Known Member

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    Thanks Sash, and again a great post Rixter
     
  6. Rixter

    Rixter Well-Known Member

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    Glad to help ross100...if you need clarification or have any other questions just ask,
     
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  7. Samten

    Samten Well-Known Member

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    Thanks Rick for a very informative view of how you do it.
    May I ask, how do you identify areas in the first place to begin your macro research?
    Are there certain resources that you use?
    Thanks in advance
    Cheers Mark
     
  8. Rixter

    Rixter Well-Known Member

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    Just found this post, sorry for the delay. I use online sites such as Heron Todd White, SQM Research, PRD Research, ABS & Pricefinder. Looking at both suburban historic / current performance including their underlying fundamentals.
     
    Last edited: 23rd Jul, 2015
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  9. Sam Yue

    Sam Yue Well-Known Member

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    Awesome post Rixter. I read your post on somersoft and took it as text book when I was buying the first interstate IP in Brisbane last year. ;)
     
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  10. beachgurl

    beachgurl Well-Known Member

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    I've bought 2 properties in brissie in the part 10 months. I research from home and make offers. If an offer is successful I fly up to take a look at the property and surrounds. 6am flight up, hire car with a GPS, look around the property and the local area, chat to an agent or two, then back on the plane in time for daycare pickup.

    I've contracted on 2 others in that time but on flying up, the property just wasn't right. As I had a due diligence clause I just had the expenses of flights and a hire car and walked away from each purchase.
     
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  11. Samten

    Samten Well-Known Member

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    Thanks for that.
     
  12. Samten

    Samten Well-Known Member

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    Hi Beachgurl, great to pick your brains on Wed nite, thanks. When you say you make an offer subject to DD is it in writing? Or do you contact agent with verbal offer then fly up and do paperwork? Apologies if this seems a lame question but yet to make an offer on a property and am not sure how the process works. Thanks Mark
     
  13. KDP

    KDP Well-Known Member

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    You would sign and exchange over emails. Verbal agreement isn't worth very much.
     
  14. beachgurl

    beachgurl Well-Known Member

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    Yep, I sign the contract and DD is a condition of sale within the contract. I usually put 14 days in, so gives me plenty of time to get up there and do any further investigation/feaso if physically seeing the property brings up any issues
     
  15. beachgurl

    beachgurl Well-Known Member

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    Thanks Mark. Most agents won't accept verbal or email offers without a signed contract up there. With the market being quite hot on subdivideable/splitter lots you sign first, think later or you'll miss out. Totally against what we do down here and takes getting used to.
     
  16. Samten

    Samten Well-Known Member

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    Thanks
     
  17. Sam Yue

    Sam Yue Well-Known Member

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    Hi Rixter, the auto-pilot way to manage property is very interesting. I fell it is very time consuming to manage bills of IPs. Do you let the property manager to manage all the council rate, water rate, strate fee and insurance? Do you redirect all the mail to the property manager? or Do you just set those bill address to the property manager's office address? Thanks.
     
  18. Rixter

    Rixter Well-Known Member

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    Hi Sam, at the time of property purchase I inform all my bill creditors (ie. council rates, water rates, insurance, strata etc) my postal address is that of my Property Manager. I dont see any of the bills in my mail box as they go direct to the PM.

     
    Sam Yue likes this.
  19. benvolio

    benvolio Member

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    distance from cbd?
     
  20. sash

    sash Well-Known Member

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    I can say now...30 klms out on border of Craigieburn and Mickleham

     

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