Serious property investors are open to buying interstate, as they aren’t bound to one particular area they ‘know’ or even ’like’ – and so will use up-to-date data to determine where the next hotspots are, to help them to maximise their return, rather than buy in areas they are familiar with, or live close to
But when you look to buy in new areas – even buying interstate – it’s of course extremely important that you do your due diligence, and you know what you are getting into. Every state has its own laws, opportunities and flaws – and so working with the right team of professionals and understanding the market you are investing in makes sense to a wise investor.
So what are the key considerations when considering buying interstate?
Buying in the right place
While some areas are set to stagnate or even depreciate, there are those whose fundamentals suggest they are set to grow. Property investment is about finding the right property in the right place at the right time. The idea behind purchasing anywhere, and buying interstate, is to understand the growth indicators – use the best available data, understand where the property cycle is at the time, and let the numbers and insights based on the right research determine what areas will economically provide the best chance of success.
Doing your research
This means seeking out the facts from the hype, the numbers from the spruikers. There are suburb and area reports readily available, and once you have a clear understanding of your property plan, your goals, your capacity, your risk profile and your budget, you can quickly narrow down to areas that fulfil these criteria. Local newspapers and council websites, local real estate agents as well as census data can help provide insights into population demographics, growth, economic and infrastructure developments, and open investors eyes to key growth indicators that have proven to be relevant from previous growth regions.
Understand local laws and regulations
There are always local costs, fees and taxes that are unique to an area. Council rates, water rates, insurance, property management fees and maintenance will vary from place to place, and understanding these is critical. A recommended local property focused lawyer will be able to ensure the investor is clear on the local terms and conditions.
Building a local property team
Recommended experts in the area, such as good builders, property managers, as well as a good local lawyer, are relationships that will influence the success of an investor. When buying interstate in an area that you don’t live in – the assurance and comfort that local professionals can be relied upon to take care of your investment is paramount. Buying interstate means having the right property team including an independent buyers agent and accountant, who know the local area well, and will help ensure you are very clear on local conditions, the demographics of the population and prospective tenants, as well as local regulations.
Keeping up to date and informed when buying interstate
An absent investor runs the risk of not seeing influential changes happening in the area in which they have invested. Through organising regular updates with your local team on the ground, an investor can keep up to date with changes in the local environment such as council initiatives, any real change in the type and style of people moving into, or leaving the area, and changes to employment prospects such as the opening or closing of businesses that may affect the investment.
Buying interstate can often be a real consideration for investors setting out to build a portfolio towards financial freedom
By considering the key factors and planning ahead, a wise investor can take advantages of the opportunity for buying interstate Australia wide, while at the same time minimising their stress and concerns around buying somewhere new.
What is important is investing in the right areas, based on the right considerations, and planning ahead to make the experience and smooth and successful as possible
At Adviseable, we purchase properties every week for our clients in well understood and researched locations, Australia-wide. Buying interstate in order to achieve your investment goals should be a real consideration for any serious property investor. Get in touch with us to help you on your journey towards financial freedom through property investment.