To Buy Property Sight Unseen You Need to Be Blind
In today’s technology age, it’s almost physically impossible to buy property TRUELY sight unseen – unless you deliberately decided to close your eyes when you research.
Many investors (when I begin coaching them), at first cringe at the thought of investing in ‘sight unseen’ because they have a conditioned belief that they need to ‘touch and see the real thing’.
However buying site unseen is a common practice for hundreds of sophisticated Positive Real Estate clients – however they have learnt some invaluable tips and have been educated on what it takes to get it right! Nearly every property has photos available! There’s Google Street view, there’s the Real Estate agency photos, plans, artist’s impressions and even photos from the Property Manager. So even when we say site unseen as such, it’s very hard to completely NOT SEE ANYTHING when buying a property.
Now this method of buying is very different from seeing the real thing and being able to ‘touch’ it, as the emotional component of buying a property is so hard to overcome.
If you are buying your own home then I’d suggest that you need to physically SEE it. Why? Cause you’re gonna live in it. And you may as well be REALLY happy and comfortable with your decision of the layout, shape, size, etc.
If you are buying an investment property though, I’d question the need to HAVE to physically sight, touch and feel the property. As a property investment coach, I often remind my clients that they are investing. Investing is a business so the focus is on the RESULT of your investment.
Make your decision based on the numbers, the financial and lifestyle benefits that you will receive. If the house is pink with purple poka-dots – do you really care?
Sometimes investors carry around ‘baggage’ of a location as well. They feel that they would “not want to live there” or that the area may be “a tad run-down”. Again, if you are getting the return you are after then really….who cares?
Buying sight unseen requires just the same due diligence as seeing the property. Research and analyse the options just as thoroughly as if you’d physically seen it. Many people buy shares on the stock market and I am pretty sure they don’t go and physically inspect the company before they buy. They look at the numbers, the PE ration and the company prospectus.
Real estate is the same. Take out the emotion and understand your strategy and the result you want from buying the property. If you can’t physically see it, that often indicates you may be some distance away. So get a team on the ground to help you with your finances, property inspections, tenant inspections and site reports. Finally – be OK doing it from the comfort of your own home……and you will open up an array of opportunity for yourself than you ever dreamed was possible!
I have hundreds of clients who buy site unseen investment properties. They buy based on crunching the numbers, doing their due diligence and research and I help them every step of the way. Many of my QLD based clients have numerous interstate investment properties – who are now extremely comfortable buying site unseen deals and have an extremely diversified portfolio and sound wealth creation plan.
Step outside your comfort zone….and the possibilities are endless! Remember one of the biggest mistakes too many investors make is thinking they have to live around the corner from their investment – they feel comfortable and it’s what they know! There are so many mistakes that come along with investing like that! Feel free to come have a chat with me and I will explain why at our next Property Investor Night.