{"id":7967,"date":"2016-05-15T10:00:45","date_gmt":"2016-05-15T00:00:45","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=7967"},"modified":"2016-05-15T10:00:45","modified_gmt":"2016-05-15T00:00:45","slug":"is-this-guy-mad","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/","title":{"rendered":"Is this guy mad?"},"content":{"rendered":"

Margaret Lomas<\/strong> says that a man who some are saying is crazy because he bought a home for he and his fianc\u00e9 without her having seen it may not be mad after all provided he exercised some caution.\u00a0 Margaret explains.
\nTranscript:<\/strong>
\nKevin:\u00a0 <\/b>There was a recent news story about a man who bought a home for he and his fianc\u00e9 without her having ever seen it \u2013 a very brave man, I would reckon. And while some may think that he was absolutely crazy, or as I said very brave, maybe a bit of both, there are others who see no problems whatsoever purchasing a home that they have never seen themselves, let alone inspected it.
\nBut surely, there have to be some things to consider before you jump in at the deep end with purchasing a property. There are two examples here. One is for yourself, you and your partner or your wife, or as an investment. I\u2019m going to ask the opinion of Margaret Lomas from Destiny Financial Solutions and star of Property Success<\/i> on Sky TV.
\nG\u2019day, Margaret.
\nMargaret:\u00a0 <\/b>Hello, how are you?
\nKevin:\u00a0 <\/b>Wonderful to be talking to you again. I guess there are two things here, aren\u2019t there? Whether you\u2019d buy one as your principal place of residence sight unseen, or whether you\u2019d buy one as an investment. Can you differentiate between the two of them?
\nMargaret:\u00a0 <\/b>Let\u2019s start with your principal place of residence, and I\u2019m probably agreeing that you\u2019d be a little crazy to buy a principal place of residence without seeing it first, or without at least one of you seeing it first. I think both need to see it, because we all have different ideas of what\u2019s good and bad.
\nI recall when we were renovating the home that I live in at the moment, my husband had a whole lot of suggestions that I just thought were crazy, that we absolutely were never going to use. I also had some suggestions that he didn\u2019t like, so we had to collaborate on those.
\nIf you\u2019re buying a house of your own, you\u2019re talking about lifestyle over investment, and people have to remember that. There are things we will compromise on in terms of the property\u2019s capacity to grow and return a good capital gain to get the lifestyle choices that we want or to get the everyday things that we want in the property. We\u2019ll often pay more for a property for particular features that we like that don\u2019t necessarily add value to that property.
\nFor that reason, if you\u2019re buying an owner-occupied property, I think that you should either be looking at it yourself, or these are the circumstances under which I like a buyer\u2019s advocate. Many people know I don\u2019t like buyer\u2019s advocates very much, but for an owner-occupied property, a buyer\u2019s advocate can often hear your brief very well and satisfy that brief.
\nKevin:\u00a0 <\/b>One of the things that I found, too, is that when two people are looking at a property \u2013 a husband and wife \u2013 they\u2019re probably going to be looking at it differently. A wife will look at it somewhat emotionally, whereas a male may look at it almost a bit removed, so it doesn\u2019t hurt to have that balance.
\nMargaret:\u00a0 <\/b>Absolutely, and we all do have different needs. Whether you\u2019re a sexist or not, men and women are different. Men and women think differently, they\u2019re programmed differently, and they move about in their personal space differently. There are things that a guy probably wouldn\u2019t even think about, such as the size of the cupboard, that\u2019s very important to a woman, and I think that\u2019s why both of them need to collaborate.
\nA good buyer\u2019s advocate can have a meeting \u2013 whether it be face to face or via the Internet \u2013 with a couple or a person and take the brief about what they\u2019re after. A good buyer\u2019s advocate should understand the features that make a home right for a woman and the features that make a home right for a man and should be able to satisfy that brief pretty well.
\nNow, when it comes to investing, everything changes.
\nKevin:\u00a0 <\/b>Let\u2019s talk about those changes. Is it because you need to treat it like a business as opposed to a personal decision?
\nMargaret:\u00a0 <\/b>Let\u2019s have a look at all the reasons why buying sight unseen can work, and why it is important that you\u2019re able to do it. First of all, the property that is most right for you from an investment point of view, which is also situated in an up-and-coming hotspot, which will also rent well and satisfies both your short- and long-term investing needs, probably isn\u2019t going to be anywhere near where you live.
\nYou might live in Sidney, and the right buying opportunity for you at the moment could exist somewhere in Brisbane, and the ability to jump up and down on a plane to go and have a look at what will be more than one property in your search for property can become a really expensive exercise, and the costs of that aren\u2019t going to be tax-deductible for you, because you can only claim an expense as a tax deduction on a property that you own that is creating an income for you.
\nSo you could be spending an awful lot of money that will eat into the overall returns of that property, because you\u2019ll essentially have to add them to the cost of buying, and you might not see enough gain \u2013 at least in the early years \u2013 to cover off those costs. That\u2019s the first issue: if you need to go and see that property, it could become a costly exercise.
\nLet\u2019s have a look at more important issues. Firstly, your ability to remain unemotional \u2013 and as you say, treat it like a business \u2013 is really impacted by what you see when you get there. This can either work for you or against you. For example, you might see a property, fall completely in love with it because it looks exactly like something you would live in, but that particular property may not have the growth drivers, the right rent returns, the right demographics, or satisfy any of your personal financial needs for the short and long term.
\nSo you\u2019ll buy that property because you liked it. You probably then don\u2019t go and do enough of the research because you\u2019ve fallen in love with it, and it becomes hard to negotiate well when you\u2019re in love with something. You want it so much that you might actually go over the value that you\u2019re really prepared to pay or that would really make that property a viable proposition.
\nThe flipside to that coin is that if you go and look at a property and decide you really hate it because the look of it doesn\u2019t suit you or you make a judgment call on it, you actually might reject the property that would otherwise make a fabulous investment.
\nKevin:\u00a0 <\/b>One of the mistakes that I think people make is that they do actually shy away from buying interstate because they tend to be wanting to buy in an area where they\u2019re more comfortable \u2013 they know the area \u2013 but you miss opportunities if you don\u2019t look outside your existing area, don\u2019t you?
\nMargaret:\u00a0 <\/b>Let me talk about this \u201cKnow your area\u201d rubbish. People say they know their area because they live there, but do they? I\u2019ve asked many people about the areas they live in, \u201cWhat do you know about the area?\u201d and all they can tell me is where the best restaurants are, or perhaps where the bus goes. Very few people know what the growth drivers are in that area, how quickly the population is growing, what the demographics are, what kind of rent return you can achieve and cash flows on properties in that area.
\nWhat they know about their area is inappropriate and, in fact, quite dangerous, because it creates that comfort that you speak of, which makes people think it\u2019s the right area to buy in, when, in fact, the right area to buy in could be somewhere else entirely.
\nI\u2019ll tell you now that I always buy in areas that I don\u2019t know but by the time I buy it, I know it far better than anybody who lives there. If you know how to do the right kind of research, you\u2019re never going to buy in an area that you don\u2019t know; you\u2019re going to buy in an area that you previously didn\u2019t know but now you know well because you\u2019ve done the research.
\nKevin:\u00a0 <\/b>That makes so much sense, Margaret. We\u2019re going to have to take a very short break. I wonder if you\u2019d stay with us. I want to pick up on your thoughts about whether or not you believe property in Australia is overvalued.
\nMargaret:\u00a0 <\/b>Absolutely.
\nKevin:\u00a0 <\/b>Great. My guest is Margaret Lomas from Destiny Financial Solutions. We\u2019ll take a break and we\u2019ll come back and talk to Margaret again.<\/p>\n","protected":false},"excerpt":{"rendered":"

Margaret Lomas says that a man who some are saying is crazy because he bought a home for he and his fianc\u00e9 without her having seen it may not be mad after all provided he exercised some caution.\u00a0 Margaret explains. Transcript: Kevin:\u00a0 There was a…<\/p>\n","protected":false},"author":176692471,"featured_media":7968,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,10,36,22],"tags":[101],"class_list":["post-7967","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-kevin-turner-sponsored-channels","category-property-investment-topic","category-research-topic","tag-podcast"],"yoast_head":"\nIs this guy mad? - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is this guy mad? - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Margaret Lomas says that a man who some are saying is crazy because he bought a home for he and his fianc\u00e9 without her having seen it may not be mad after all provided he exercised some caution.\u00a0 Margaret explains. Transcript: Kevin:\u00a0 There was a...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2016-05-15T00:00:45+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/is-this-guy-mad\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/is-this-guy-mad\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"Is this guy mad?\",\"datePublished\":\"2016-05-15T00:00:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/is-this-guy-mad\\\/\"},\"wordCount\":1572,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/is-this-guy-mad\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Buying a property\",\"Kevin Turner\",\"Property Investment\",\"Research\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/is-this-guy-mad\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/is-this-guy-mad\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/is-this-guy-mad\\\/\",\"name\":\"Is this guy mad? - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/is-this-guy-mad\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/is-this-guy-mad\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2016-05-15T00:00:45+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/is-this-guy-mad\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/is-this-guy-mad\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/is-this-guy-mad\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/is-this-guy-mad\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Is this guy mad?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. Anywhere, Anytime.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\",\"name\":\"rolanrush\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"caption\":\"rolanrush\"},\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/author\\\/rolanrush\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Is this guy mad? - Realty Talk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/","og_locale":"en_US","og_type":"article","og_title":"Is this guy mad? - Realty Talk","og_description":"Margaret Lomas says that a man who some are saying is crazy because he bought a home for he and his fianc\u00e9 without her having seen it may not be mad after all provided he exercised some caution.\u00a0 Margaret explains. Transcript: Kevin:\u00a0 There was a...","og_url":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/","og_site_name":"Realty Talk","article_published_time":"2016-05-15T00:00:45+00:00","author":"rolanrush","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rolanrush","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/#article","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/"},"author":{"name":"rolanrush","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"headline":"Is this guy mad?","datePublished":"2016-05-15T00:00:45+00:00","mainEntityOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/"},"wordCount":1572,"commentCount":0,"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/#primaryimage"},"thumbnailUrl":"","keywords":["podcast"],"articleSection":["Buying a property","Kevin Turner","Property Investment","Research"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/","url":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/","name":"Is this guy mad? - Realty Talk","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/#primaryimage"},"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/#primaryimage"},"thumbnailUrl":"","datePublished":"2016-05-15T00:00:45+00:00","author":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"breadcrumb":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/#primaryimage","url":"","contentUrl":""},{"@type":"BreadcrumbList","@id":"https:\/\/channels.realty.com.au\/realtytalk\/is-this-guy-mad\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/channels.realty.com.au\/realtytalk\/"},{"@type":"ListItem","position":2,"name":"Is this guy mad?"}]},{"@type":"WebSite","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website","url":"https:\/\/channels.realty.com.au\/realtytalk\/","name":"Realty Talk","description":"Your Trusted Voice For Property Investing. Anywhere, Anytime.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d","name":"rolanrush","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","caption":"rolanrush"},"url":"https:\/\/channels.realty.com.au\/realtytalk\/author\/rolanrush\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/7967","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/users\/176692471"}],"replies":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/comments?post=7967"}],"version-history":[{"count":0,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/7967\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/media?parent=7967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/categories?post=7967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/tags?post=7967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}