How To Buy Property Interstate (When You Can’t Travel There)
with everything that’s happening in australia with their pandemic and people not being able to travel interstate unless you want to be quarantined for 14 days it can be really difficult to work out okay if i actually want to invest interstate because i see that as a better market or somewhere that more suits me as investor how am i actually going to achieve that in this market so today i got with me ben everingham buyer’s agent from pumped on property to talk through this issue as he often helps people buy from interstate so hey ben how’s it going hey mate how are you yeah really good so we can’t get across the border at the moment i wanted to come up to shoot some of these videos in person but unfortunately you know i’m not going to be allowed to maybe for some time there’s going to be a lot of investors as well who maybe wanted to travel to brisbane or the gold coast or sunshine coast and to be like oh yeah i’d love to invest in those markets and look at buying a property in those markets who now can’t travel there but still want to invest there so what are some things that we can do looking to buy in the state what are some of the risks that people should be aware of you know mistakes to avoid um it’s such a timely question man because i literally had this convo with three different people yesterday like hey i really want to get started or hey i’ve got started but i can’t see the property what is the solution so i suppose like we talked about there’s really two options one is um if you’re an investor looking to 100 do this yourself then just take the time to slow down a bit you know identify where you want to buy which city um you know which market and do all of the desktop stuff that we talk about you know like have a good look at the suburb have a good look at the sold history start reaching out to the local agents and start building that rapport you know find yourself the right partners for after you’ve bought like solicitors and building and pest inspectors and town planners etc so that you’re all ready to go you know because i i believe that um a lot of people like to see properties themselves in person before they buy them or if not you know pay someone professionally to go and have a look at it on their behalf before so if you’re in that boat where you just don’t feel comfortable then maybe the only advice you’ve got at the moment as bad as it is is keep learning keep looking keep figuring it out and then when that time comes jump on the plane to wherever it is in australia you want to look at and and take that plunge well that’s the thing i think if you’re sitting there and you want to invest into state you’ve got a few different options that you need to consider the first option if you’re doing it yourself is buying site unseen so that’s just doing your desktop research you know looking at the market looking at the suburb looking at the property doing all the analysis and then just talking to the agent and ideally getting like a building and pest inspection on the property before you buy it and that’s you know totally feasible people can actually buy properties like that obviously you generally want to be able to see the property to identify things that don’t necessarily come up in the photos and i don’t know i think there’s a lot of stuff i mean an agent can do a virtual walkthrough now even the 60 year old agents we work with that don’t know technology at all that are still running like a nokia 3210 have someone in their office that’s like hey i’ll um hook you up with a ipad and they can walk you through and then you can when you book your building and pass get your building and pest inspector to have you on facetime or digitally and you know they can walk you through too so there there’s definitely a way to do it and and it’s much more set up now so you can do site unseen and purchase it sight unseen and get the agent and you’re building a pest inspector to take more photos or videos of the property to kind of help you identify those things second option is to just wait it out basically do your research learn heaps but realize that you can’t travel up there and you may need to wait if you’ve spent three years saving a hundred grand man and you’re ready to do it though right like that’s not really a solution orientated outcome but it might be the right one for some people yeah but for some people if you don’t want to go sign unseen or you don’t want to take the third option which is which is to hire a buyer’s agent to you know inspect the property for you then waiting it out might be the best for them because this second way that’s happening you know melbourne’s in stage four for the next six weeks or whatever but then maybe it’ll ease up after that and you’ll be able to travel and only be a couple of months until you can get up there who knows or it could be six months or 12 months like that’s the problem with waiting is that if you’re ready to go and we don’t know how long it’s going to take you might miss some opportunities you’ve got to remember like everything is about risk there is absolutely a risk of not physically inspecting a property not looking at a suburb not looking at a street before you buy there’s also an equally strong risk of hey if a certain suburb right now because it’s at the bottom of a low or because of the coronavirus market and therefore there’s less buyers less investors you know sometimes you’ve just got to weigh that risk up do you you know from a risk perspective look at it and go the risk is too high for me to not inspect myself which i fully get for some people or not get a virtual inspection or is the risk of paying 10 more in two years time when you’re ready to you know it’s a tricky one hey i don’t know how to answer it for myself um and that’s probably what this video is about yeah well and the third option is to hire a buyer’s agent and someone who’s on the ground who knows the local area knows a local agent who can inspect the property for you and so we’ll talk about that towards the end but i want to talk about okay what are some of the risks of purchasing a property site unseen what are some of the things that ben when you or your team go to inspect a property what are some things that tend to come up that don’t necessarily come up when you’re doing your desktop research like i i’ve been on a lot of inspections i i realize there’s a lot but i’m just feeding you the questions here um you know we use an application that we built that produces like a report for every person that we look at so they’ve got 12 or 16 pages to review and about 130 things to look at plus the photos but the big ticket items that are missed you know i created that report for myself before i started the business because i was missing things on previous properties and making mistakes so one thing that you don’t get online is if a living space is too small if a house is too small if the bedrooms or bathrooms are too small if the floor plan is like clunky if it’s a clunky floor like here’s the rule of thumb with that if the agent’s not putting a floor plan in place it’s either because they’re super old school or all because the floor plan is shocking and so you really want to know what it’s going to look like you also can’t properly get proportions um on the property you can’t figure out where it is on the block well enough to be out beside it if you’re looking for higher use another really important thing that i like to gut check is like what does that street plus when i’m buying like the five or six streets around it directly feel like now you could be like anal like i am and print the map for google and then put every sale in the last two years by price point on it so that you know where the good pockets are but there’s nothing like driving around and seeing how many are renovated how many have been knocked down and rebuilt how many of them are in good condition with their grass cut and how many cars are on the street and i’ve tried to do this so many times from google view and because google views on a particular date it just doesn’t give you that live data that i need yeah well google might have been done you know three five ten years ago yeah like if you google my house there’s like a picture of a dog literally mid doing a poo on my friend’s ass like it’s like hanging out of his bum it’s like the guy from google deliberately stitched me up with that it’s like you know what i mean like maybe you’ve seen like your dream home but there’s a dog doing a poo out of stuff like this with mine that’s like all seriousness though like bedroom sizes living spaces flow of the home and then quality of the street and then i don’t believe that you can get it you know there’s two things to do here there’s the data associated with the suburb and then there’s the intuitive would i live there and raise my family or could i see potential their check and i don’t think you can do that unless you either pay someone or go and check it out yourself because plenty of times i’ve gone off like data and made massive mistakes on the intuitive stuff that results in higher resale prices and rents yeah well i remember you were talking about a property you were looking at in brisbane one time and it checked out all the data checked out all the suburb research checked out google street view all checked out and then you went down there and the road was actually way busier than you originally thought it was just from the data and effectively effectively that property was on a main road and you didn’t even know it and so by being down there that’s just one thing that you’re like okay this is going to limit the potential capital growth of this property in the future and it’s something that you only really get from being on site at that point in time where you can see it and really just be like oh yeah i understand this completely like this week for example we identified 10 properties across brisbane north south and central that looked really really interesting to us as a business and after going and reviewing them only four of them actually made sense because it’s very difficult to find overhead power lines like they can immediately if they’re within a certain distance of your house decrease the valuation by 500 50k it’s really difficult sometimes to see the size and scope of schools the size of main roads to get a sense of where the buses run and how busy it is at key points of the day so all of that stuff is like soft data that you collect to make an intuitive and data back decision and i think for me personally the only mistakes i’ve made in investing is when i bought without really wrapping my head around the data first and then secondly like those softer things as well yeah so now let’s talk about using the help of a buyer’s agent obviously you run a buyer’s agency so you’re constantly working with interstate clients who might live in sydney or melbourne or basically anywhere in australia and you’re helping them to invest mostly in southeast queensland and brisbane let’s start okay what percentage of people actually invest their property and see it in person before buying it probably only um 20 percent of our clients would actually come up and meet our team um and they’re mainly people that are fans like just want to come on the road with me for a day and hang out learn some stuff get super educated and have like a nice beer at lunch like i swear they come up for that experience which i love they come up for the good vibes yeah just come up to hang out and like learn some cool stuff as part of their education process but in reality 80 of clients like i’m working with a guy this year alone in mongolia singapore north korea no korea did you say north korea south korea sorry um i’m working with guys in hong kong his name’s not kim is it it’s just like yeah like a couple in london that’s in lockdown isolation right now like just so many different people you know again i suppose it comes down whichever buyer’s agent you choose in the australian market for the area that you’re going to focus on it’s like do they have the people on the ground because half of the buyer’s agents flying up to brisbane right now were people from sydney that didn’t have a team member up here that don’t have any relationships that can’t get on a plane so if you’re paying a buyer’s agent you know eight to 16 000 bucks and that person can’t even cite the property for you it’s like you know a whole lot of the value goes away um that’s a whole another thing like i really believe that you have to be on the ground to be a great investor um but yeah like i think i’m going off on a bit of a tangent there that’s fine but but yeah so i think you know most people who use you as a buyer’s agent and use your team don’t necessarily inspect the properties themselves and so like i could ask you what you guys do on the inspections but i’ve obviously been on a bunch of inspections and i can say that when we’re on these inspections not only are we talking with real estate agents and building that rapport which will help in the future negotiations but we’re also going through everything to do with that property so looking we’re going through a massive checklist looking at everything what are the room sizes from what could potential issues be what’s the conditions of the ceiling fans to you know the stumps all of these sorts of things that you might not necessarily think about as well as like how how bigger things do they feel livable is the backyard big enough for a granny flat if we’re going for that dual occupancy does it sit on the high side of the street and throughout this checklist as well all of these photos are being taken so i know that clients get this detailed checklist that’s been looked at by experts who do this for a living like they’re inspecting properties multiple properties every single week lots and lots of them and so you get kind of good at okay spotting these things and you can as well when we talked about in our previous video about brisbane and analyzing suburbs and comparing them to each other when you’ve got someone on the ground who is comparing properties to each other and doing a lot of volume and comparisons it’s so quick to say okay yes this property is good versus this one rather than just whether one property by itself is good having that comparison is so important and so i know having a good buyer’s agent on the ground will do all of that sort of stuff for you you’ll then get more of a detailed report so you’ll feel more comfortable investing and then they’ve also built up the rapport as well i know i know i’ve been on inspections and they say you know what are the what are they looking for and the the agent sometimes just gives away way too much information about oh they’ll settle for this number and then you just got to play the game to and then you get it for that number if you want it sort of thing so uh you know a personal example of that is like um a couple of months ago i was looking to buy a property and this property been online for like 370 to 380 000 for months and it was probably overpriced at that price point slash it was like the very start of the virus um i just run up the agent after a few months i’m like it’s not moving what can we buy it for today she’s like 340k i sent her the contract side unseen because it was a knock down i’m just like that’s the what you get from talking to the same person every single day for four years um and so yeah i wanted to bring up something there like if do you mind if i give like an example of like how i used to do it when i was buying my first property versus how i buy now um so the way that i bought my first property was um i went and got a pre-approval for 400k i went and looked at the two closest suburbs to my house the cheapest property on realestate.com and that was it i went and bought it and i was looking at two units and i lost one of them and i got this one and that was like the whole scope i got a building and pest report after and i got a strata review um because it was a unit in sydney and i did all this desktop research to like make myself feel like i’d done the right thing it was like a hundred page report um i sent it to like the mentor that i had at the time that was financially free through properties like not one of these is an indicator i would have looked at i’d spent like days doing it and he’s like you’re looking at all the wrong stuff but if you think it makes sense go for it and i was like um and it did make sense because it was at the bottom of the cycle but i could have done a lot better with that money and that was like then the next time i bought my second property was on the central coast i had a notepad i organized one agent to take me to the 14 houses he had and then he took me to the one he wanted me to buy last which is so standard of an agent show you all this and then something a bit better and i bought it on the spot and i looked through the house with a notepad i had 14 properties notes on one page could hardly even remember seeing it at the end of the day and then i bought it um and that was like again luckily timing was on my side what i do now is before i even talk about a property is i look at sydney melbourne brisbane timing then i choose one of those markets let’s say brisbane i then look at north central south east and west as an area i pick the best area with the most potential medium to long term i then look at all of the suburbs in that area across 40 indicators reduce it down to one suburb i’m going to buy in that one suburb i look at every single sale every demographic flood searches housing commission searches and then all of the soft indicators like infrastructure schools and then at that point go to a looking at a house i then start calling the agents get access to the 50 of off market listings that they have in their pocket that you don’t know about online as well as look at all the listings online i follow this reporting process and look at 140 things if i like it then i get a town planner a building and pest inspector a builder a building certifier a solicitor and a property manager to look at it plus my team who’s an accountant and an engineer in-house if every one of them like it only at that stage do i actually think about buying it it’s like that is so insane man but that’s what it takes to get better than average results and to protect your downside and that’s just our standard business process so it’s like you know now i’m now i know why i’m getting results because i’m being so obsessive with this stuff but if you’re not obsessive you will get average and average is okay but above average changes your life in 15 years instead of 30 you know what i mean is that too much like i didn’t mean to overshare but i’m like i just want people to know like how much goes into the small cost that someone would pay one of the good companies in australia yeah well that’s one of the hard things about buying interstate by yourself especially if you’re buying sight unseen so much of that sort of stuff a lot of it you can do desktop research but so much of it you’re just going to miss out on and so you can still you can still get good returns you can still get lucky but it’s a lot it’s a lot more of a luck play and i would personally feel like my risk would be increased if i was to do that versus having all the desktop data and then having all the on the ground experience as well so yeah i guess how do you do we want to take a step back from there to make it not feel overwhelming because it’s not if you just follow sydney melbourne and brisbane at the right time houses close to the city or the beach in a nice suburb in a nice street you’re doing 99.9 better than everyone so even though i do all that stuff because i’m trying to get like 100 better than everyone else you’re doing 99 better just doing that simple stuff you know what i mean it’s not complicated it’s just how you know you want to play at the professional level or you’re happy to just have a punt at it and look we’ve got so many videos talking about how to do each of those things if you are overwhelmed you can go through either my channel or ben’s channel and look at all the educational videos that we’ve got on there but yeah hopefully this has helped you see you know or at least start to think about what your options are if you do want to invest interstate do you want to wait it out until you can actually go and inspect yourself do you want to do it sight unseen or do you want to go ahead and look at hiring a buyer’s agent like the team over at pumped on property so it’s obviously completely up to you what you want to do ben and the team are over pumped on property do offer free strategy sessions so if you want you can get on the phone to them talk about your situation where you’re at where you want to be you can talk about the brisbane market and the different suburbs within that market and what might suit you and then if you want to you know you can take that information and use it yourself or you can hire them if it makes sense and they can help you purchase these properties interstate so that all starts with a free property strategy session so go to com dot on-property.com.edu forward slash strategy to learn more about that over there booking a time that suits you it’s currently like booked out two or three or even four weeks in advance so it can be hard to find those sessions but if they’re there they’ll show up as available and you can pick a time again that’s on property dot com day you forward strategy to check that out and book in a time but we wish you the absolute best uh through you know this pandemic and everything that’s happening better health and best of luck investing interstate until next time stay positive
Watch The Video:
With everything that is happening in Australia and with the inability for a lot of people to travel to other states how are you able to actually invest interstate successfully in the current market?
0:00 – Introduction
1:05 – What are your options?
2:30 – #1: Buying sight unseen
3:37 – #2: Waiting it out
5:25 – The Risks of Buying Sight Unseen
9:20 – #3: Using a Buyers Agent
12:05 – What do buyers agents do on inspections
14:28 – How Ben used to buy properties vs how he does it now