Is buying sight unseen a wise decision?
Your best investment opportunity might not be right on your doorstep, yet travelling interstate to inspect a property will eat away at your savings. So, is buying sight unseen a wise decision?
Investors in search of both capital growth and positive cash flow may well need to look beyond their own backyard.
Buying just up the road might give you peace of mind, because you’re able to pop around for a peek every now and again, but the next suburb along could be a poor business decision - and buying an investment property needs to be a good one.
Smart investors not only look more than a half hour’s drive away, they also look at other states and territories.
If you live in an expensive location, you can start to leverage your money sooner by buying out of your area, rather than trying to save up enough money to enter a market with which you are familiar.
With proper research you can pick the market, pick the locality and pick the entry point.
Being able to identify key growth drivers is vital.
Other ways to ensure you make a smart purchase:
- Take a video walk-through of the property
- Get a thorough building inspection with detailed report and photographs
- Discuss the property with a local property manager and get them to inspect it
- Get a rental appraisal if the property is vacant
- Speak to agents and local residents about the street and surrounding area