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​How to Invest in Property Interstate Without Getting Stung

13/12/2016

2 Comments

 
We often get asked whether investing in interstate property is worth the risk. Tales of property spruikers and the hassles of buying in an unfamiliar area have turned many investors off looking beyond their home state.

While it’s true that there are traps for unwary investors, there are also a number of very good reasons to buy interstate. As the property market cycle can move differently state by state, when properties are slowing down in some states, in other states they may be growing. By diversifying your assets to include interstate properties, you could expand your potential to enjoy strong capital growth and healthy rental yields.

As with any property investment, research is the key to making a success of your interstate purchase. Start by reading these four strategies and speak to us if you need professional advice – such as which investment property loan is right for your needs.

1. Research the full picture

Strike the right balance between doing your own internet research and talking to industry professionals. The more research conducted from a variety of sources, the more likely you are to gain an understanding of both positive and negative aspects of the property. 

Internet searches, property reports, virtual property tours, buyer’s agents, real estate agents and other investors are all valuable ways to find out whether this property is likely to perform.

2. Factor in the cost of a property manager

You might not think you need a property manager, but it’s wise to factor in the cost upfront. Screenings tenants, conducting inspections and organising repairs has its challenges when the property is nearby, let alone thousands of kilometres away. Including the fees of a property manager in your budget will ensure you are prepared should you choose not to self-manage.

3. View it as a long-term investment

Look not just at the qualities of a property but instead hunt for suburbs that show potential for capital gain and rental growth over a longer period. Positive signs include strong rental demand, population growth, adequate transport links, shops, schools and planned developments.

4. Conduct background checks on the professionals you hire

It might not be feasible to make numerous interstate trips, in which case you’ll need to rely on local talent such as conveyancers, solicitors, real estate agents, buyer’s agents, building inspectors, pest inspectors and property managers. To find people you trust, it’s imperative not to be sucked in by sales talk – always request and follow up on references when hiring a professional.
2 Comments
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19/2/2017 07:27:40 am

This is a really informative post. I believe that I'll make great use of this information in the future. I want to get into the investment business in the future. I'll be sure to bookmark this, just in case. Thank you for sharing this and I hope to learn more from you. I'll be keeping myself in check with your posts.

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Alice Diaz link
23/6/2017 12:16:27 am

Usually most of the property investors start with a property in such an area which they know well or in a city in which they live. But I think buying a property investment in another state is a very smart and strategic move and if one will implement the above ideas then I am sure that he can definitely securely invest in an interstate property. But on a overall basis I would like to say that if the before anyone going to invest in such a property, first he should have to make a strategy based on in-depth research and analysis of interstate area.

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