Investing in a property is essentially like buying a house.
You need to make sure what you’re investing in is up to scratch.
Its important you do your own due diligence before you sign on the dotted line.
Yes you can look at the valuation, check relevant RP data but how do you really work out what the property is worth?
Watch the video and/or read the transcript below.
For an appointment with a Product Specialist call the office on 1300 652 158
Julia: Hi guys. Welcome back to Mortgage Mondays. I’m Julia, and this
Julia: Daniel, you were asked a question the other day about our
Alexandria property. What was it?
Daniel: The question was, at the end of the video, we made a comment
where we said, “Look, as always, investors have to make up their
own mind as to what they think the property is worth.”
Daniel: Now, my investor, a friend of mine said, “Look, I’m not a
property expert. So how would I know exactly what that property
is worth? I mean, I can look at a valuation and people can tell
me this, but I really have no idea how they’re valuing that
Daniel: It’s a really good point because the key to this type of
investing is really understanding the property that you’re
lending on. That’s why, as an investor, it’s pretty critical,
well, it is for me, that I’m lending on properties that are in
my own backyard or in areas that I know. I need to be able to
drive up to the property, have a look at it, get my comparables
and my RP data information, ring some agents, and I can be
pretty comfortable within a ball park range of what that
property is worth, and I know that I’m only lending a fraction
of that value.
That’s the key. If you look at a property and go, “Look, I don’t
really know whether that thing is worth a hundred grand or a
million bucks,” that’s not a deal that you should be investing
your money into. So you’ve got to be really careful of that. So
lend in your own backyard, do your own research, and get your
gut and your instincts comfortable with what you’re lending
Julia: Okay. Great. Some good points there Daniel.
Daniel: Thank you.
Julia: If you’d like an appointment with Daniel, call the office on
the 1300 number.
Daniel: Thanks for watching.
Julia: Thanks for watching.