When we think about buying an investment home, we typically think about making the purchase within our own state. It’s where we are comfortable, know the area, and it makes it easy since the new property isn’t thousands of kilometres away! But if you are looking to purchase to increase your wealth, avoiding interstate purchases can limit your potential. Buying property interstate doesn’t have to be a trying ordeal. In fact, if done correctly, your interstate purchase can be just as smooth as a purchase close to home.
But if you are looking to purchase to increase your wealth, avoiding interstate purchases can limit your potential. Buying property and conveyancing services interstate doesn’t have to be a trying ordeal. In fact, if done correctly, your interstate purchase can be just as smooth as a purchase close to home.
There are a number of things to take into consideration when you are ready to purchase an investment property interstate. Here are seven tips to help you when you decide to buy property interstate:
1. Do the maths
Just like any other major life purchase, be sure you do the maths before you begin looking. Each state has its own unique set of taxes and fees, so you will need to calculate the highest amount you can afford, then lower it before you begin your search.2. Do more research than you normally would
2. Do more research than you normally would
Use realestate.com.au’s Invest Tool to research states and suburbs you are interested in. It will provide you with historical data (such as property prices) so you can make an informed decision.
3. Research online
You can find out the growth trends of an area, plans for upcoming improvements, local council information, and tax information before ever stepping foot out the door. Begin your search online, then narrow your options.4. Visit the area
4. Visit the area
Nothing beats seeing a place in person. But don’t visit before doing your research online. You don’t want to spend thousands of dollars on plane tickets to find out you don’t like any of the areas you’ve visited.
5. Understand state property cycles
Look at independent property research websites to guide you on where the market in each state is headed. You want to make an interstate purchase in an area that is on the rise, not one that is slowly dying.
6. Find a local agent or property manager you can trust
Since this investment property will not be right down the road from you, you need to find someone you can trust to look after the day to day matters that arise. Research companies and individuals to ensure you don’t lose money on your investment due to poor property management.7. Find a local conveyancer to help you with the process of buying the property
7. Find a local conveyancer to help you with the process of buying the property
Once you have decided on the property, you will need a local conveyancer to help you through the process of buying property interstate. Someone local to the area will help you understand the tax laws, fees, and point you to a building inspector to ensure your investment is sound.
Buying property interstate is a great way to capitalise on growth areas and increase your investment. Just be sure you do your homework and stay well informed of the differences between each state.