Buying an IP without personally viewing

[ak22]

Newbie here. Hope to get some feedback.

Going with numbers alone and a trusted person's keen recommendation, would you buy an IP without viewing it p yourself personally?

Yield is 7% ++. Trusted person, who inspected and viewed IP himself (sort of like a partner you know has the eye for detail when it comes to properties) feedback came back positive.

It's a "go signal" except that you, the buyer, didn't see and inspect IP.

Would you go ahead with the offer?

[Leftette]

Would depend on location (both town, suburb, street, aspect and neighbour proximity), price, type of property and photos.

[donthatetheplayer]

No. I wouldn't personally. What else would you spend $100's of thousands of dollars on without viewing? I'm sure some of the experienced PI's would be comfortable to do it. How many IP's have you bought previously? Has a builder looked at it?

[Maccachic]

Also make sure the trusted person hasn't an interest somewhere? What's their experience?

Get a good builders report carried as part of you conditions.

[ak22]

No. I wouldn't personally. What else would you spend $100's of thousands of dollars on without viewing? I'm sure some of the experienced PI's would be comfortable to do it. How many IP's have you bought previously? Has a builder looked at it?

Intending to buy this property and will be my first IP. I will include in S &P subject to builder's report clause.

[donthatetheplayer]

I'd say what's the rush? I would definitely want to look at it. What is preventing you from viewing? If it's a problem to view now what's it going to be like when you own it - i.e. if you have to visit for whatever reason? Sounds like unnecessary risk for your first IP. You really want to be a total expert in the market to buy site unseen. Really interested to hear what the very experienced PI's have to say.

[Maccachic]

Edit that should say a Pre Puchase inspection - use one of these members they are qualified and insured: http://www.buildingsurveyor.co.nz/

[ak22]

Also make sure the trusted person hasn't an interest somewhere? What's their experience?

Get a good builders report carried as part of you conditions.

The trusted person is the other shareholder on which we intend to buy the property under (an LTC company). He's my partner. The only experience he had was buying our own property together.

Would my partner personally viewing the property be enough for us to go ahead? Or do you usually have all shareholders (if under company) view property before proceeding with an offer?

We plan to have the builder's report clause in the S&P. I'm more interested with the numbers but then, that's only one of the factors of the investment decision.

[donthatetheplayer]

Why can't you view the property? If I was your partner I'd want you to view it. What if there is a problem after purchase? You won't have anyone to blame but yourself for not viewing. Are you ok with this? It sounds like you want to make the offer. If you are comfortable with all the possible scenarios that could arise from not viewing it go ahead. I can't understand why you wouldn't view it..

[Leftette]

A friend of a friend bought a place over the net. Looked lovely but she hated it and would never do the same thing again. It was her own residence, but similar parallels exist, especially if you follow the mantra - never buy a place to let you wouldn't live in yourself.

[Orpheus1]

Ive done it twice and had no problems.
They all worked on paper, had conditions like builders report built in to the S&P.
I had trusted property managers not associated with any real-estate agencies view for rental assessment and their general thoughts.
The only thing is one seemed smaller when I finally got to view a couple of years later as the agent must have used a wide angle lens.
Id do it again no worries at all.

O

[Eljay1]

I've done it a few times but only because I live in the middle of nowhere and the return flight and inspection would take a week to complete. I wouldnt do it with PPOR but for investment as long as numbers, suburb etc are what Im looking for then I take a risk. I do have a trusted builder and ask him to also let me know about any general concerns or pluses beyond just building condition.

[tom.d.r.g]

I agree with most that if you can view it your self then I would recommend it. At the end of the day the cost of a drive/flight and a day or two is going to be far less that a bad investment decision.

In saying that if you have partnered with the person then there needs to be a level of trust between the two of you. If he has inspected it and given it the go ahead you may want to go with it. Do they have experience in buying IPs?

[Andrews1]

I've purchased 4x sight unseen before due to investing in areas outside my PPOR. Have visited 3x of them since purchasing- 2x were actually tidier than I thought and 1x needs a bit more work than I thought. I would purchase sight unseen again but a good photo rich building report is a must. One thing that can be difficult to detect sight unseen is moisture- we have pulled out of 2x purchases based on building reports showing issues relating to moisture which perhaps we would have picked up on if physically viewing. So a bit of wasted money there. If at all possible now we try to physically view the house at all times prior to purchase- but obviously there are some occasions where we need to move quick to "snap up a bargain".
My 2c worth- would hardly call myself an expert but I am learning all the time.

[Dallas]

My last one I did. It was thru a buyer’s agent that I sometimes use and trust. I still had an independent builders report done. If the figures work then I'm happy to let others guide me on the rest. I'd definitely do it again.