This happens especially because the market conditions differ from state to state. For example, in a particular area the property values are rising, but in another one the prices may fall. If you want to benefit from a unique combination of healthy yields and capital growth that will undoubtedly improve your property portfolio, you should consider investing interstate. But what should you know before you get started?
Get familiar with the market
If you live in Sydney, a property which costs $450,000 in Hobart may look like a great deal to you. But the truth is that this price is above the average value by more than $100,000. Nowadays, the median value in the capital of Tasmania is $332,400. Before making any investment, do some research. Get information from specialised resources on the Internet and try to identify the factors that may generate capital growth in the future. Never make an investment before getting to know your targeted market.
You may not always be able to see the property before buying it
Let’s say you live in Townsville, but you wish to invest in a rental property in Perth however do not have the time to view the property…How should you act in these circumstances? An option is to ask for professional help and contact a buyer’s agent. He/she may go to see the place for you and then provide all the necessary details. Indeed, you will have to pay for his/her services, but it will definitely cost you less than investing in an unworthy property or a journey to see the place in person.
The costs of stamp duty differ from state to state
The value of the stamp duty is not given by the location in which you live, but by the site of your property. So if you are investing in properties interstate, use an Australian stamp duty calculator to determine the accurate costs.
Seek a local property manager
As your new rental property will be in another state, it is next to impossible for you to reach it whenever it may be necessary. However, you should still know a few things about your tenants, maybe organise repairs to keep you with the market and maintain your properties value, or inspect the rental property from time to time. If you can’t do all these things, you may want to hire a local property manager. He/she must live near the area of your rental property and take responsibility for it. This way, it would be much simpler for you to take care of your estate, even though you are far away from it.
Discuss with a mortgage broker
If you need a loan for a property investment, you should consult with your local mortgage broker first. This way, you can make sure you choose the loan that is suitable for your needs.