My first property hunting expedition, what ?'s should I ask

[Elizabeth]

This Saturday Im going to go look at property(I live in Hamilton). This point of this is just to gain expeirence, not to buy property(no deposit+ not the best time to buy). What are good questions to ask a realestate agent? When I start buying property it would have to be in the lower end of the scale (120,000-), is there any specific questions to ask when dealing with this sort of property?

[Elizabeth]

I already have the Sunstone property checklist , I mean other then the fill in the box questions

[Julian]

Why is the seller selling?
What's the selling range (Ron's tip)?
What is the rental range for a property like this?
Are there any problems with the property that I should know about?

Also ask the agent if he/she has any rental properties. If yes, ask how many. This will help you build a network of agents that think like investors and they can be immensely helpful in sorting the wheat from the chaff.

Julian

[Kiwi_Investor]

Hi, I would also advise doing research on the areas you are looking at, and look at what infrastructure supports the area or suburb, also look at vacancy rates and Dept of Housing webiste for rents and bonds lodged for the areas your looking at.

You may also find that agents ask you questions on order to 'qualify' you as a potential purchaser.

For me the most important question is, 'why is the owner selling', you could also ask if there has been much interest in the property, these help to give you an idea what you might be up against if you decide to go to contract, and if you even what to put an offer in.

Good Luck

[fudosan]

How long has the property been on the market?
Has the vendor received any written offer? What happened?

[Dean@Massiveaction]

Most important thing is to start to suss out the agents if you're not ready to buy. Whenever I go into a new area I visit every open home going and spend time talking to any agent who sounds like they know what they're doing. Especially find out if they invest in property themselves. They're the ones to cultivate. A good agent can save you hours and thousands.
I've found over time that I don't have to chase deals down so much any more. I'll ring an agent I already buy off and they bring the deals to me, usually before they're listed. Investors often are taught to run over agents but working with them's a whole lot easier.
And no I'm not an agent nor is anyone in my family!! I just like easy deals and good agents help a lot.

[Stevegoodey]

Hi All,

I've had some success with "what is the vendors motivation?"

Also a big fan of Ron's questioning.

And also like to ask about the rental history agent then goes off on a tangent about 100% occupancy and tenants that are amazing then you ask them if they can show you proof, they either do or everything goes all quiet.

Good hunting.

Steve

[fudosan]

I've had some success with "what it the vendors motivation?"

Very interesting question. What kind of answer have you got so far?

[Elizabeth]

"You may also find that agents ask you questions on order to 'qualify' you as a potential purchaser. " how do i politley dodge these questions? Im 17 and a uni student so i wont be purchasing very soon. I dont want to get a bad reputation with agents. Thank you everyone for answering

[Julian]

Elizabeth,
Didn't your parents ask you to go and check out the market for investment properties? Is it not true that they are very busy people and just don't have the time? Might you not be living in it while you go to uni/tech/work etc?
Julian

[Dean@Massiveaction]

Elizabeth,
There is no substitute for honesty. Tell the agents you are interested in property and you're wanting to learn. Many agents will be happy to talk to you, especially at a slow open home. Ask them lots of genuine questions then come back to the forum and check out their answers.
I've made some fabulous contacts by talking to agenst about property and investing. Many of them ring me with deals regularly now. LEarn all you can before you part with a dime.
If you want to be succesful in life and investing NEVER EVER EVER lie!!

[Elizabeth]

Hello all and a great big hello to you cube,


I am currently look at buying a property in Glenarvy 2 bedroom one bath. About 10 minutes outside of Oamaru. Purchase price is $58000 and (equal to the valuation) the rental evaluation as done by a property manager is $120-$130. It is 56m^2 on a section that is 456m^2. It is unit title in a medium density zoned area. I am waiting for the builders report. The LIM report does mention that the communal sewage tank is not approved by council, it is working and in theory (fingers crossed) should be getting approval in July.


First thing I am going to do with that sucker is paint it, the outside is flaking and all of the inside is pink!
I intend to user a buy and hold stretegy.

I am still trying to work out what legal stucture would be best for this.

All comments welcome!

[Monid]

Hi Elizabeth

Might be worth sitting down and playing through the numbers a couple of times running different scenarios, it sounds cashflow positive, but once rates and expenses are taken into account it might not be. Also worth looking at the Stats department's info on the town, although its out of date, its a good idea to try and get some indication of whether the town is likely to grow or shrink.

Still on the face of it sounds like a good deal,
good luck with it

[xris]

Elizabeth,

Otago?

xris

[Jumpin]

Elizabeth,
regarding the deal, my 2 c worth. Questions you need to ask yourself:
Why is this property on the market for such an attractive price? Can you get insurance - how old is the property? How much will you need to spend keeping it rentable?
What is the local rental market like? ie How many weeks a year with no tenants are you facing? Is it surrounded by HNZ properties? This may make it unattractive to the right kind of tenant. Monid is right about rates - they tend to be outrageously high in small town NZ. Check it out.
Repainting a 330k property in town will cost little more than repainting a $58k hovel in the wop-wops.
Property management - who is available to do it, what is their track record? Local tradesmen - are they available or rare as hens teeth as in most rural towns? A wait in getting work done will cost you big time in rent.
Capital gains will be non-existant.

Having said that I do not know the area you are buying, much less the property. Just supplying a few question you may wish to think about.

Good luck