Why invest in interstate properties?
- Investors usually overlook the advantages of investing in properties outside the state they live in.
- They are caught in their comfort zone of what they know. The lack of knowledge of other states is a major deterrent.
- In Perth, people who live south of the river tend to invest south of the river.
- You need to get out of your comfort zone, to get comfortable and it takes trust and knowledge to do that.
- First time investors fear not being able to have regular check-ups and keep an eye on their interstate property.
- They don’t realise that even if you managed the property yourself, you can’t just pop in whenever you feel like it.
- If they haven’t lived or visited a suburb, they are unsure if it is going to be safe and they can attract a good tenant. Especially if it is in another state.
- Internet and technology have changed the property investment game in the past 10 years.
- Information is readily available with Google maps and council websites. You can find out a lot about an area without leaving home.
- The challenge is, there is too much information and a lot of it is inaccurate, out of date or simply irrelevant. Investors can get overwhelmed rather quickly and give up.
- Seeing a property investment expert can help people cut through the clutter and access the relevant information so they can make informed decisions.
- Getting the structure and the foundation solid with correct evaluation methods is critical.
- A bad experience means you won’t want or even be able to invest again.
- One of the great benefits with interstate investing is diversifying your portfolio.
- Interstate investing means you can enjoy a more consistent return from your portfolio.
- The cycles differ in different states. Some states may be experiencing a downfall in growth while others are booming.
- Population and migration trends, infrastructure development and resources, new employment opportunities, or even newly built suburbs and estates all affect the growth in each state.
- Hence buying at the right time in a market that is slowly entering its next boom cycle is possible.
- Looking Australia wide means you can have a good outlook at more suburbs that are projecting high capital growth and experiencing low rental vacancy rates.
- We spend a lot of time researching areas where infrastructure is being approved and beginning to receive media attention.
- Diversifying and buying in different states can avoid land tax and staying under the thresholds allowed in every state.
- It is highly unlikely that information on upcoming booming cities will land in your lap.
- It requires some significant research to find upcoming boom cities. This is why Guardian Property Specialists (GPS) offer in-depth research for most cities in most states around Australia.
- Every investor needs to make informed decisions when considering investing interstate.