Tips on Buying Property in another State

Aaron Horne The reasons why you might be buying in other states. I thought we could a look into why you'd be looking to buy another state and then kind of how you go about doing it. Yeah. Yeah. If you're from elsewhere looking to buy here on our beautiful island, or if you're looking to leave our beautiful island and move somewhere else. John McGregor Going, what's going to. I know you're listening to the property on. Aaron Horne All right, guys, welcome back to the property pod, your weekly engagement into real estate here in the marketplace. I'm your king of podcast entries. Aaron Horn. Getting that right every week has been letting the world know. So here I am with Patrick Barry, John MacGregor, Real estate agents are full and will probably go in if I keep talking and don't leave a gap. Aaron Horne They won't get to talk for the whole podcast. This will be just a show where it's all about. John McGregor Me. Aaron Horne Yet I run out of steam so I'm going to have to throw to one of the guys I was really. Patrick Berry Hoping to hit. That cricket noise. John McGregor Is. Patrick Berry John. If that's not. Yeah. Speaker 4 Well, I just want it to be that we could be the joker in the face at this point. Aaron Horne Because you'll have to explain that reference to me. Speaker 4 With the What's the band that the Joker ran The Thief into. Aaron Horne Wolfmother. Wolfmother Yeah. It. How does that fit. John McGregor Into the case? Because the key is. Speaker 4 How well I could be the dance. And you know. Aaron Horne You're drawing a really long bar, but neither of us jumped on board the arrow to the IT. Speaker 4 And I was going to use another roll reference, but then that song started playing a major role with. Patrick Berry Us. I get it now. He's basically signed the head lead singer, Wolfmother. Kenny Talent. Aaron Horne Yeah, exactly. So no problem. We've actually had a pharaoh like the lead singer of Wolfmother. All previous. Speaker 4 Lot wasn't. Well, I was. It was long enough that I could chew on it. John McGregor Yeah. Aaron Horne That is disgusting. Yeah. Yeah. Speaker 4 Like it was just. There's this, you know, that. Patrick Berry Language started. John McGregor Strong. Yeah. Speaker 4 If I had the capacity to be able to, like, have straight hair, I would have 100% and all the things that make me a. Aaron Horne Nobody gets to choose. Speaker 4 The no. Aaron Horne Cut of their hair. Yeah. Yeah. Speaker 4 But this problem was it all me was in the wrong era. Like curly hair wasn't popular when we were sort of, you know, in a 20. Aaron Horne Okay. Speaker 4 Hairy chest, you know. Aaron Horne Well I remember that born out of. Speaker 4 Yeah. If it was seventies, you know, forget it. John McGregor But, but it was just. Speaker 4 Like a prime was the wrong era. John McGregor That's it. That's all the. Speaker 4 Things. All the things. Anyway. Patrick Berry Hairy chest is my name or in high school. But it didn't work for anyone. Aaron Horne And you would be mad. Speaker 4 Scott Scarves. Aaron Horne You know, this is the first episode of the podcast. If you just thought someone recommended this property podcast. John McGregor Yeah. Patrick Berry Pilots go back to 170, but I'm. Aaron Horne Just going to start at this one. Someone told me it was good. John McGregor For. Patrick Berry Wolfmother. John McGregor That. Aaron Horne It made a huge mistake. Go back now. Go back to what you're listening to. This is not the podcast again. John McGregor All right. Let's move this forward, heading forward. Aaron Horne With real estate talk. What's happening out there in the world of Hobart? Real estate currently hit me with a market update. Patrick Berry Oh, well, it's actually been pretty good the last week and a half. More showings. I feel like that spring bug has almost bitten. Yeah, maybe he's just crawled out and he's found some rabbit. He hasn't quite latched on just yet. Aaron Horne Yeah, Yeah, but it feels like people are coming out of the woodwork. The sun's out, guns out. Get into the market. Patrick Berry Martin had multiple offers on a property on Saturday. Last Monday. He was working through that. Matt's just sort of want it like 10:00 last night where she had multiple losses. Speaker 4 Yeah, yeah, yeah. Patrick Berry Well, so it's been a long six, 12 months since we've seen sort of multiple offers. And I'm not saying that, you know, we're. Aaron Horne Going to it's a sign of the times and yeah, jump back straight into it. Patrick Berry But it just does feel like over the last week that maybe we've just hit the lucky spot and had a couple of properties that ticked boxes. I don't know. Speaker 4 But it could be. Yeah, but we've had a historically though it's always September, October, November. Patrick Berry Always busy. Speaker 4 February, March, April, So they're always the busiest months anyway. So in what we've had is the slowest market in a long time, but we're in it's still in a slow market. But compared to where we were, if. Patrick Berry We're 10% more. John McGregor Before. Aaron Horne Yeah, yeah. Speaker 4 Like with that said, there's a bunch of factors to that too. You know, the interest rates have been put on hold several times at this point, so. Patrick Berry There's license being down, what that means. But apparently it's important. Speaker 4 It sounds like we know that. Patrick Berry I'm just looking out for that one guy that thinks we importance to start it today for the first time. Aaron Horne Yeah, first time listener. Yeah. Speaker 4 I think I was chatting with a friend last night and he because they're developers and he recanted that land sales are still very slow compared to what they were and you know they've had large amounts of discounting across different different sites in order to be able to encourage that activity. Aaron Horne So could that be based on that, the cost of building? Speaker 4 That's exactly very much so. Patrick Berry I've met multiple people over the last couple of weeks and I'm one of them where they've got as far as everything's approved, ready to start construction? Yep. In the second guessing themselves. Yeah. Do we build, do we not build? Do we just buy some finished and sell the block at a loss like that's what a lot of people are thinking at them. Speaker 4 And I think that's still a lot of uncertainty on a day to day basis for people to consider what they want to do so that a lot of people are still delaying and there are a lot of people still that are stuck in the situation of needing to sell before they buy. So I think it's that it's really easy to get a couple of really active, you know, active weeks and go, Oh my God, things have changed. Speaker 4 And look, like we said, probably 10% they have. Yes, but the fundamentals across the board in terms of living expenses, etc., and the uncertainty around the just the actual cost of holding property at the moment hasn't changed. Yes. So so what we do say though, is no matter what market, there are always people that have that aspiration of owning a home or or those that have to move. Speaker 4 So that activity is always there. But it would seem to us that it's still going to be some time before it would reconvert into a seller's market and will stay there. Buyers are a balance for, you know. Aaron Horne Yeah, I guess it's an interesting kind of question, just a pose, I guess. Right at the start of a uptrend or perhaps an uptrend is yeah, do we see it going further and back towards where we were or is it just going to stay kind of balanced? And yet you're in a mild state of flux. You just had the right properties with because the ones I know that have got offers over the last five, five days. Aaron Horne Stunning properties. Speaker 4 Exactly. Aaron Horne Really, really nice. It's just like, yeah, hot chicken offering on them if that was in a position to do so. Speaker 4 Absolutely. Aaron Horne So is it just that or. Yeah. Is is there something in the air. Patrick Berry I think the key to that is well-presented. Homes always attracted attention one. Aaron Horne Hundred percent. Patrick Berry Again. So if you're thinking about selling, you've got to like John always says remove the buts. And you're right, the two that have had really good interest by Martin's was a very old original home sort of 70 style, but it was very nice. Aaron Horne As a button. It was like. Patrick Berry Polished. So an inch of its lot fairly. Speaker 4 Priced for its size as well. Yeah. Patrick Berry So there's I can see people looking at that thinking this is a good place to get into and I can make something of this. Yeah, modernize it, do what I want to do with it. It was in a great area so I can see why that one went off. Aaron Horne And then on the other side of the coin, Marilyn's one. It might be I don't know if this is a two that doesn't affect the property. The owner cared so much about how it was presented that she'd gone to Bunnings and found some spray paint and just a few of the patches in the grass by panel just so they'd look better. Speaker 4 That's excellent. Aaron Horne What I'm trying to find, as I said, I need a vendor. I said, What's going on? It is just I didn't want the grass to look bad. Patrick Berry And you were like, I could have just. John McGregor Couldn't fix. Aaron Horne That imposed. I could have just fixed it up and and made it. But she thought about every little factor of presenting the property perfectly clearly. Work I think, was on the market for like four days. So we applied where I thought we could jump from. There was I've actually got some a question from my partner who sent it to me a few weeks ago. Aaron Horne So I'm actually planning on releasing this episode, putting it out into the world. She's been asking me constantly. Patrick Berry Longtime listener of the show. Yeah. Yes, right. Aaron Horne Listens all the time. Speaker 4 Just like Abby. John McGregor Yeah, actually. Speaker 4 Kathy falls asleep when she. John McGregor Listens to us. Patrick Berry Well, I've got two friends that used. John McGregor To go to sleep at night. Aaron Horne So when I say mob, I know she sent me this question. It was in like one of her mum chat groups that she's got on Facebook sort of thing. And it was kind of someone reached out asking, I'll pull it up and I'll get it right. But she asked me to talk it on the podcast and I said, Oh honey, I got you covered. Aaron Horne Like, I'll talk about it this week. Speaker 4 We just will put a time stamp to let them know where they need to. Aaron Horne Do any. John McGregor Of the other rubbish. Aaron Horne Yeah, listen, from now. But basically yeah, it was in, they talked about Mummy's group and it was someone asking about buying a house in another state. And the question really was is it doable? Like how would you go about it? I'm assuming so, but how, how does one's anxiety cope? Do real estate agents do zoom style inspections and has a process of buying in and out of state? Aaron Horne And we've kind of talked about it in the past and we've talked about some presently with people investing in other areas. But I guess there's heaps of reasons why you might be buying in other states. I thought we could look into why you'd be looking to buy another state and then kind of how you go about doing it. Aaron Horne Yeah, yeah. If you're from elsewhere looking to buy here on our beautiful island, or if you're looking to leave our beautiful island and, and move somewhere else. Speaker 4 Well, I think the first part to that is to consider who is it that's representing your interests. So if you are doing it by yourself and you're trying to lean on the selling agent of any particular property, bear in mind that you might end up dealing with 10 to 15 different real estate agents, all representing their own individual properties where they're an individual clients. Speaker 4 So the degree of the service and what they're going to provide for every house is going to be vastly different. You might end up finding a selling agent that actually works with you very, very well that is helpful in answering its questions or, you know, all your specific questions. And then you might find be very comfortable with the the experience you've had. Speaker 4 They've had Zoom meetings, they've put you in contact with local conveyancers or local building inspectors, and you could feel very, very trusting in that transaction with that said, they're like those friends of ours that had bought interstate previously when they first moved to South Australia and they know they went in grade, they're from Tassie and the agent at the time didn't described them the actually pest inspections. Speaker 4 So in that case they bought a house and they found that 6 to 12 months later the damn thing was riddled with termites. Aaron Horne Okay, you have. Speaker 4 In a small fortune to fix it and that's to here. So on the on the other side then if you engage a buyer's agent, for example, it's a completely different kettle of fish. Yes, it's going that you're going to have to pay for this service. But in that instance then is that they are 100% in the defense of your, you know, your interests. Speaker 4 So they will do the inspections for you. They will identify things of concern. They will be able to point out things that you need to consider in line with your what you're hoping to achieve. So if you are looking to purchase interstate, you really need to consider how much time you have to invest and how confident you are in making those decisions confidently without with potentially no one who's acting on in your best interests. Aaron Horne Bombshell. So sorry I tried to jump. Speaker 4 Off on that. Yeah, that's fine. Patrick Berry So yeah, perfect. That's a great way of looking at it because you are you've got to make the decision. Is that investment in money worthwhile to have the buyer's agent or. Yes. Am I prepared to run the risk. A little bit of mine along the way? Yes. Yes. That to me is very important. The first question you have to answer and what purpose are you buying for? Patrick Berry Are you buying to live in yourself or are you buying a business purpose? Aaron Horne Yeah, I guess I thought before we go further down the road, what if we just defined, like, some of the reasons you might be looking to to buy interstate? So kind of the ones that jumped out to me and hit me if I'm wrong or if there's any other ones, but I was thinking yet you're either chasing an investment opportunity, you're looking to diversify your investments and other places all over the place. Aaron Horne You're relocating for a job, looking for a lifestyle change or yeah, there's kind of family considerations, like you're thinking about moving further or closer to family. You might be trying to escape escaping. You might be trying to get closer to them. I know the place that Marilyn sold just the other day. The vendor there is looking to move to Queensland. Aaron Horne They're actually away this past period, looking into buying interstate. So it's a really good jumping off point for them into. Patrick Berry And I think that's where almost if you've got the means, it's a great way to start. If there's no I think you want to move, go spend a week there and get to know it a little bit better. But you know, people that moved or want to move to Tasmania, they don't know the difference between Bridgewater and Rosetta or Sandy Bay like, so you need to get in there and literally go and drive around those suburbs and get a feel for what they offer if you've got that flexibility to do it. Aaron Horne Yeah, I think in, in the conversation that was had on this Facebook group where this question came from, someone had said, Yeah, just be really careful. I purchased a place in Dover before coming and visiting Tasmania. I ended up thinking that the drive from Dover was similar to the drive from where I lived in inner city Sydney. Patrick Berry And that's a good example. Sydney People who travel for an hour and a half drive exactly. And so you look at somewhere like Dover, Oatlands offered places like that. So that's not too far from Hobart. I can commute each day, but it's a different type of road. Yeah, they're driving a highway for an hour and a half and at a very slow pace. Aaron Horne It's a completely different thing. Patrick Berry I mean, 110 kilometers through a winding road every single. Speaker 4 Day and often to where your home is. And those like, you know, the regional centers is it they still have all their essentials that they need it very, very close by on a day to day basis. Yeah, but they're traveling for work. Whereas if you buy in regional like an hour and a half here, you might not have anything that you need. Speaker 4 And so everything then becomes travel. So that's so I guess, you know, we that I know when we've had people buy from interstate from here will find that they will, you know, come in for weeks like right I'm going to look at 15 to 20 properties this weekend. I was like, bang, bang, bang, can I you know, identify a few that you have? Speaker 4 Can you help me on those and those journey through. Yeah. And get a feel for that area which in my mind like if you're intending to, you know, if you're training to live there, that has to be, you know, it's almost like you have to do it if you can, you know. Patrick Berry Then Flipside, if you're looking at an investment purpose, then it's more data driven exercise. Yeah. So online research, figuring out which ones have better rent returns, it might be worthwhile reaching out to a local real estate agency and asking to talk to the medium like what you have here. Joe Yep. She might be able to give you insights as to which areas are better to buy in versus others. Speaker 4 Yeah. Patrick Berry So when you buy an investment, you don't necessarily want to talk to the sales agent, you want to talk to someone in the rental department area to find out and the agent saying this will rent for 500 per week. Yeah, and maybe not even talking to a rental person from that same agency. Talk to an independent one. Just a. Aaron Horne Yeah. So, so the next kind of point I put down for this was yeah, you research the area. If you can get there, go and check it out. Look at the schools, the amenities, all the things that are around there, even whether you're investing or not, you might want to find out whether it's a up and coming suburb or if it's one that's kind of plateaued. Aaron Horne The next one was yet find your local real estate agent and maybe don't just hit up the first one you find. Yeah, that's what you want out. You know if you gel with this person, you might find that someone is a snake oil salesman. Has just. Oh, yes, it's Dave from Tassie. They've got two heads in there. I've got them sorted with. Aaron Horne Oh they might be like. Speaker 4 Oh. Aaron Horne That's a live in Tasmania. I used to live just three streets over from your grandma and yeah, I know everything about, I know exactly what you're chasing. Patrick Berry It's like when people tell us they're from Sydney. CHUCKLING Yeah. John McGregor Oh, I. Patrick Berry See it this way, people. Speaker 4 I swear at this point it's more of our clients that say that, Look, if we just found someone from Sydney or Melbourne, they'll just pay it. They'll just. John McGregor Wait out. That's not worked. Aaron Horne Yes. So search out your local real estate agent and then. Yeah, one I hadn't considered in my research phase was your buyer's agent. So yeah, that's kind of someone else that you can engage with that would get do some of the legwork that we're discussing. Patrick Berry The buyer's agent. It's a great option if your ever option, if you're looking to live in the home or buying it, is investment, you can put a different hat on and really drill into what it is you're trying to find in your property. You have a duty to buyers agencies that they have a lot of strong relationships with agents and they might find something that's not officially for sale, especially in this market, when people are too nervous to go to market unless they can get what they want for the home. Patrick Berry Yep. So there's some deals that are happening off books because, you know, I'd sell if I could get 500,000 for it. But I don't want to go on the internet just in case. Yeah. Yeah. A buyer's agent might have the perfect buyer for it and connect the two together, and that's it. Speaker 4 A cost benefit ratio. If you're if you have to do multiple trips to interstate before you found a house you like because you're trying to, and then you're missing appointments because it's sold and etc., things like, Oh, but I just want to pay on, let's just say ten grand for the services. Well, they're on the ground and they're doing that work for you every day of the week as opposed to you only having 48 hours to fly. Speaker 4 They just smash out 20 properties back to back and hoping you get a fine and, you know, a needle in the haystack. And then, okay, well, you know, I've done this. Many trips are better by something, otherwise I'm wasting my time. Yeah, yeah. Probably spend more time and more money just by attempting to do that. Work yourself in order to think that you're saving money, you know? Speaker 4 So again, it really depends, I suppose, on what it is you're trying to get out of it. And I think even if you're looking for a house to move into, I still feel and you are using a buyer's agent, I still think it's important to visit the suburb in which you're intending to buy so you can get a very good feel of it. Speaker 4 Yep. But after that, they will be doing, you know, lengthy video tours and descriptions and conversations with you to try and ensure that you are buying a house that you love. If you want to, you know, move into it. Aaron Horne Yeah, yeah. The video tours is a great jumping off point for the next bit was yeah in that question in the group was it do real estate agents do zoom tours or. Yeah. Calls. Speaker 4 Oh yeah. Yeah. Aaron Horne Easy answer. Patrick Berry Yes. And I'd had a few properties where we haven't had phone reception so I've had a video chat with them before. Yep. And they've said, well I want to know this, this and this and then I've got to film the video. Yep. Based on what they were asking so that through to them. So you know, there are ways to, to definitely get more information to people easily these days. Patrick Berry Yeah. Aaron Horne And then on like my side of the marketing fence of trying to create this beautiful kind of video that that happens and you show all the beautiful things in the property, but you don't want to just know the beautiful things. And I'm not going to be going and filming. John McGregor Oh, let's not paint. Speaker 4 Exactly how many of the covered and closing the pantry doors. Aaron Horne Whereas a zoom one way you can be like, Look. John McGregor Tap's work. Yes. Patrick Berry Doors work is massive. Yeah. Aaron Horne Is there are there any broken windows? Are there any of these kind of things that I need to know about? This is a way that you can kind of get across that. Yeah. Speaker 4 And if you're working with a still a gelling agent that likes that is prepared to put in the work, they will go there, will do that for you. Some may not. But I guess that's the thing where like you said that and they just never speak with one. Speak with multiple. Yeah. Generally speaking, that's not an option because not one agent has all the properties in the market for sale. Speaker 4 Yeah. Yeah. So, but it is just the luck of the draw sometimes depending upon the level of service that you're going to get. Aaron Horne Just before we sign off the last one, I thought about where you brought up the termites as well. So that's something that we don't really deal with here in now on our beautiful island, which I mentioned before. Yeah, are. Patrick Berry Very lucky on that front. Aaron Horne So that's something that you've got to consider on the mainland is yeah, it has controls or things that are happening in other states. Yeah. Can you run me through what you guys know about kind of what you should be doing if you're purchasing on the mainland? Speaker 4 Well, each, each state has different, um, you know, legislative requirements, so a few of them will have that. A building inspection must be building and pest inspection must be prepared at the time of listing and has to be made available for the purchasers to view. Yes, we're in Tassie. It's still very much buyer beware with no disclosures have to be made and most of the research is put on to the purchaser to make sure that what they're buying, they're confident in. Speaker 4 So each state has different rules in that sense. I guess on a very simple, simple way to look at it, you have to consider understanding the conditions of a property will go through is your your building and structural electrical and plumbing. After that, of course, then there is the addition interstate, which is your pest inspection. So termites and Tasmania is unique in that sense way. Speaker 4 We're the only state where that's not required. Yep. But if you're buying anywhere else in Australia, the building in Pest is an absolute essential. So I think buy another important thing if you are buying interstate is you don't have the relationships that you can lean on for advice or, you know, recommendations like you would have friends have bought previously. Speaker 4 So even if you are then speaking with an estate agent and they might say, Look, I'll recommend you use this guy or this girl, just go, Well, just maybe get someone else to get a second opinion about who someone else might use as well for both legal representation and, you know, maintenance on that respect as well, because they're just like it. Speaker 4 Just like every industry, there are different price points and different different quality of service that you may not get on your first recommendation. Aaron Horne This might be a silly question. I don't know if it is. Can you use a Tasmanian conveyancer? Speaker 4 No, no, no. The reason why I recommend use is because every, every state has its local laws. Yeah. And so you just want to use someone in that state that obviously. Aaron Horne The ins and outs. Patrick Berry Of it specializes in that. Aaron Horne Area. Yeah. Yeah. Now just as you ask us. John McGregor If this is the. Speaker 4 Theory, so I. Patrick Berry I was just going to say, but some lawyers have affiliations with other lawyers in other states. Yeah. So maybe you've using that the MacIntyre and Bartlett here in Hobart, you want to buy a property in Melbourne, They might have a law firm in Melbourne that they do a lot of work with. Yes, you can talk to your local lawyer and he may be able to recommend someone in whatever state you're going to. Speaker 4 Be working with a national law firm who has their pockets. And you know, look, there are, I think in theory it can be done, but it's not a good at all. Aaron Horne Yeah. And what you're describing is, you know, the local market and be all over that you don't want Joe Blow from down here being like Tim and that's what a termites I've never heard of those things don't worry about it it's. Speaker 4 Well I think. Aaron Horne It's most. Speaker 4 I think people forget the purpose of the engaging a legal representation is it's not for when things go right, but it's when things go wrong. So if you've if you've got someone who's unfamiliar with the local laws and they're trying to defend your case, well, they're just going to be way less effective than someone who knows it in sort now. Aaron Horne Yeah. Yeah. Oh, that's awesome. So answer is, this is how you can go about. Speaker 4 It can be. Aaron Horne Done. It can be. Speaker 4 Done. It can be It's doable and. Aaron Horne It might be something that does provide you with anxiety, but there are ways that you can mitigate. Speaker 4 Those. Yeah. Yeah. Aaron Horne Reach out to local agents, find out more about the area. Patrick Berry And as agents. Aaron Horne Or as agents. Yes, that's what I hadn't thought of. Yes. Patrick Berry Utilize them. If you think it's going to work for you, get rid of some of that anxiety. Aaron Horne Yes, Well, I love it. Hobart Mum, Sorry about the start of this episode. Speaker 4 Just skip straight to my. Maybe we could put like just could chop that and put that at the end. It's probably not a bad idea. John McGregor Actually. Aaron Horne I can put it in his mouth. Yeah. Yeah. Goodness gracious. John McGregor If that doesn't get the Hobart excised leave. Aaron Horne All right, guys. Well thank you for another fun episode of the probably thought we'll be back next week with even more like share subscribe. Even if you don't like the start of the show, the middle bit, there was something. You don't say something It is. All right, guys. Maybe you have been listening to the property both recorded and edited by four wonderful media house in conjunction with four wonderful property code. Patrick Berry This podcast is general information only and the thoughts of views expressed is the opinion of our panel and listeners should always seek than use their own investigation into any topic we discuss to ensure they fully understand their own situation. Speaker 4 It does not constitute and should not be relied on as purchasing, selling, financial or investment advice or recommendations expressed or implied, and it should not be used as an invitation to take up any agent or investment services. No investment decision or activity should be undertaken on the basis of this information without first taking qualified and professional advice.