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The challenge is, there is too much information and a lot of it is inaccurate, out of date or simply irrelevant.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.
