Over the past two decades, the world has come a long way in terms of data and research. Technology has made everything so convenient, and you can view – and share – almost anything you want with your fingertips on your phone.
Nowadays, you can even do business around the world in the comfort of your home. In real estate investing, the Internet is widely used by ordinary investors who build their portfolios. The majority of ads are posted online on real estate websites, with professional photos and detailed descriptions of the home to whet your appetite. Advisors, purchasing agents and property managers also carry out their activities online, highlighting their expertise through their presence on social networks, via podcasts, blogs and much more.
With the popularity of real estate investments between states and abroad, the blind buying strategy is not a new trend. This is the process by which buyers make a purchase without having seen or inspected the property first – making the decision solely on the basis of the information gleaned from the list, as well as their own research and advice. an agent.
It certainly makes things a lot easier, but will it pay you in the long run?
Some call it "blind dating of investment strategies," and as with the human version, there are arguments for and against its effectiveness. To make the most of the process, we describe five steps to buying from sight to the invisible.
The blind purchase is based on research – a thorough and thorough research. This is the main determinant of the good you buy
1. Be clear about your criteria
Before using your Internet connection to view your ads, the first important step to take is to decide what you want out of your potential property. You are looking for a house? A unit? How many rooms? In which domain? What type of feedback are you looking for? What types of tenants? What is your budget?
The invisible purchase is based on research – thorough and thorough research. This is the determining factor in determining the property you buy because you rely entirely on the fact that the potential properties check or not the corresponding boxes. So, setting clear and specific guidelines will help you eliminate lemons right away.
2. Concentrate on areas of high growth
The wealth of information at the fingertips of investors is the main reason why invisible buying is becoming more popular. Buyers can now consider properties all over the country – and even abroad – because they are no longer limited by the impossibility of conducting a personal inspection. The key to your success lies in the efficiency with which this treasure is used.
Growth rates over a longer period are crucial elements to consider in determining the best areas to examine. planned or ongoing developments of the board; council regulations; inspection of buildings and strata; vacancy rate; demographics; possession costs; and possible income and deduction calculations. All of these can be obtained online on websites like CoreLogic, Your Investment Property or Real Estate Investar.
You do not have to limit yourself to the Internet either. Call sources of information such as local councils and real estate agents to get a clearer picture of the area.
3. Visit reputable websites
Even if you have a limited budget, do not let this push you to focus on extremely cheap but obviously inaccurate suburban listings simply because the price is right.
Real estate sources that lack credibility and promote suburbs that do not have a growth factor in their favor will increase your chances of being sold to a lemon wrongly presented as a "market".
Some reputable and reliable sites to check when browsing real estate include realestate.com.au and domain.com.au, which are very recognizable in the industry and have strict standards regarding for people who can post ads on their platforms.
4. Recruit a good local real estate agent / buyer
If you have found a property that might be suitable for you, start the communication – but not with the seller for the moment. Although most ads, if not all, are accompanied by photographs to give you an idea of ​​the appearance of the property, be aware that many sellers manage to appeal to professional photographers to improve the product.
The right angle conceals important negative points, such as a terrible view, an electric tower located right next to the property or a floor whose foundations do not seem so stable.
For this reason, you may consider using a buyer agent to make a representative with your interests at heart. The agent should be as close to the area as you study, because he will know better than you the situation of the field. He will know which pockets are more valuable than others and will be more aware of the potential disadvantages of the site. the sellers may have left out their descriptions.
Interstate buyer agents who are not from the region will have a hard time evaluating the value of the property and will be more likely to make decisions in a hurry as they are on a travel schedule.
5. To make independent verifications
Your buyer's agent has surrendered the property to the one you are considering, so that means it's time to start negotiations, right? Not quite yet.
Once again, take advantage of everyone's best friend, Google, to do your own check of the property and its surroundings. Google Maps is actually an excellent tool for unsuspecting buyers: it will show you the conveniences of the area to enable you to quickly spot potential problems such as the property being located near a manufacturing plant, d & # 39; A noisy highway or a cemetery. Street View can even allow you to check features such as power lines (although you need to make sure the photos are up to date!).
If you already have a contract in front of you, you can also call on an expert to prepare a power of attorney report that will confirm whether the contract specifications correspond to the actual property. Also have your own building inspections and pests – these checks could be the difference between the right choice and a bad property that hurts your wallet.
The purchase of a real estate investment invisible can be a strategy of division. Some think it's a smart game that lets you explore more options beyond your own neighborhood, instead of having to invest "where you know it".
Moreover, this allows you to really dissociate all the preconceptions of the property because you are not falling in love with the kitchen nor imagine how much the residents of the house would love to have a brunch in the back porch.
You do not have to limit yourself to the Internet; make a phone call to sources of information such as local councils and real estate agents
Nevertheless, other investors consider it to be a risky gamble that may not bear fruit. If you are buying between states or between the United States without physically inspecting the property, you risk missing some nasty surprises – such as an obstructed view or a graveyard next door. This can also lead to additional headaches when repairs and maintenance are needed, and you need to remotely adjust them.
In the end, however, a sight investment should be treated exactly as if you could visit the property and browse it a dozen times – with little emotion and a clear concentration on the numbers. Whether or not you live in the same area as your real estate investment, your decision to become a homeowner should be based on the potential for profit from the asset.
Viewed from this angle, invisible buying is not so risky after all. In addition, by following our basic steps, an invisible investment strategy does not have to be a disaster and can put you on the path to financial security.
