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The 4 Golden Rules of Buying Property Sight Unseen

The 4 Golden Rules of Buying Property Sight Unseen
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Despite it being considered a risky approach, there are many property investors that have achieved great success by buying sight unseen. When approaching this strategy, here are four ways that you can minimise your risk in order to achieve success.

1. Do Your Research

Purchasing property, sight unseen is only as successful as the potential of the area that property is located in. This will help you to determine properties that have the most potential and what the right one is to invest in.

Speaking with industry professionals located within the area of your potential investment is also essential for good research. A development or real estate professional will be able to provide you with current market data as well as qualified advice.

Looking at area research and market data, researching online and even speaking with a professional are all great tools at your disposal. But, you also need to take advantage of the technology and resources available to you in order to get a complete understanding of your potential property. Such as something as simple as searching the location on Google Maps. Unlike most sellers, the map will show you what is nearby. If there is something detrimental nearby – like a cemetery – you won’t be caught unaware.

2. Only Buy New

Research can only take you so far. In order to minimise your risk as much as possible when buying sight unseen, it is best to purchase only brand new developments. This way, you know exactly what you are getting. Let’s say you are interested in purchasing an apartment in a new Gold Coast development and currently reside in another part of Australia. When you inquire about this development, you generally speak directly with the development company and will be sent a banquet of up-to-date information about that property’s plans.

3. Find Someone In the Area That You Trust

If possible, you should have someone inspect the property on your behalf. Whether that’s a friend, family member, co-worker or old acquaintance, someone is always better than no one. This is particularly important should you choose to invest in an already established property. A physical inspection will give you a clear understanding of any obvious repairs or maintenance issues. Just make sure that whoever you choose is an independent party, not the selling agent or property marketing company.

4. Know Your Risk Tolerance

Like any investment, there are risks associated with property investment. This is especially true of sight unseen property investment. You need to know your risk tolerance and make an informed decision from there.

Buying sight unseen doesn’t mean you are completely ignorant. If you have looked into the suburb, community, council developments, building and strata inspections, holding costs, possible income and deduction calculations – plus you know what price point to work within – then you have a very clear vision of your investment and its potential.

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