AN AMBITIOUS real estate investor decided to buy a home he hadn’t viewed before bidding.
The homeowner bought the property unseen and the return on his investment is quite impressive.
However, the Australian investor now regrets a little that he went through the buying process.
“That’s why it seems like a shockingly bad idea to buy a house unseen. But to me, when I bought my house unseen ten years ago, the purchase seemed perfectly acceptable,” explained Ian.
The risk taker decided to buy the house with no down payment.
“If I were to go through the process again, I would most likely be more careful. Maybe I’d save some extra money for a down payment,” he noted.
Ian explained that there are a few reasons why someone would consider buying a home without viewing it first.
Some people may live outside of the state or country where the home is located.
Others may not have enough time to view the property and may feel the opportunity is too good to pass up.
This particular investor wanted to reduce their taxable income through loan interest and property management costs.
He took the advice of his accountant and started looking for an investment property.
“The only problem was that I lived on the west coast of Australia and didn’t want (or had) to fly to the eastern states and look for a property,” explained Ian.
“Also, the town where the house I bought is located was completely new to me, so my local knowledge was very poor.”
Luckily, Ian had the help of an experienced real estate agent who viewed almost 40 properties and provided his professional opinion.
Ultimately, Ian decided to take a chance and buy $595,000. Townhouse in a central part of town, close to good schools and a hospital.
His risk certainly paid off, but it wasn’t an easy journey.
“But over the next five years, my home’s value has increased significantly, to the point where my home’s value has more than doubled to $1.25 million,” he said.
In the ten years that he has owned the house, he has only had the opportunity to visit it twice.
“My biggest problem with buying an interstate investment property is that I have to travel between states to plan renovations or just to tour the home,” he admitted.
From now on, Ian plans to buy property in the city where he lives.
“I know my city well enough to know where and what to buy, and I’m already there when renovations or repairs are needed,” he concluded.