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The Unseen Investment

On Nov 25 2013
Tagged as:
  • Investing


Is buying sight unseen a wise decision? Your best investment opportunity might not be right on your doorstep, yet traveling 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- the winning combo- may well need to look beyond their own backyard.

The Unseen Investment

Is buying sight unseen a wise decision?

Your Best Investment Might Not be at Your Doo

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- the winning combo- may well need to look beyond their own backyard.

Buying just up the road might give you piece 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.

 mart investors not only look more than a half hour’s drive away, they also look at other states and territories, including regional centres with strong fundamental growth drivers.

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.

If your own locality has not been doing well, you can also identify one that is and then get a better outcome for your investment sooner.
 

 

The Power of Research

Buying sight unseen is an option, but it certainly carries a level of risk, particularly for the uninitiated.

Fortunately, the internet and similar technologies have given us improved access to other property markets. 

Property investment is now much like buying shares. Although you might not sit in the boardroom of the company, you do conduct comprehensive research and analysis.

The same applies to buying a property sight unseen; it requires dedicated research and a thorough understanding of the property market.

With proper research you can pick the market, pick the locality and pick the entry point. Fail to do your research thoroughly however, and you won’t get a full understanding for a local market - regardless of location.

Being able to identify key growth drivers is a crucial part of the research and due diligence process and you will need to thoroughly research key drivers, such as employment and infrastructure development.

Other Ways to Ensure You Make a Smart Purchas

Take a video walkthrough 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

If you have concluded your best investment will likely be in an interstate or regional market, and you’re still hesitant, book yourself a flight, buy the ticket and take the ride!

For further property investment insights and all the latest property market news visit www.spionline.com.au

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