Article by Davina Delauo
As property markets take off, you might quickly find yourself priced out of your local area. If this is the case, consider investigating the possibility of purchasing property interstate. Queensland, Adelaide and Western Australia are currently good examples of property markets that, while still relatively affordable, are predicted to see record growth in the next 1-2 years.
There are a number of factors to consider when investing interstate particularly when you want to ensure the property is a good investment long term. Although it can be tricky to secure a property away from your vicinity and the area you’re familiar with, with proper research and advice, there can be a number of advantages to widening your search location. This brief article will offer a few tips on buying a property interstate and what to look out for.
Picking The Location
It is important to take the time when deciding exactly where to invest and remember that the fundamentals of choosing a property remain the same, whether it’s situated locally or in another state. You’ll need to look for areas with diversified industries, steady job growth, progressive infrastructure, increasing household incomes and strong population rates. It will also pay off to find out more about the neighbourhood’s lifestyle amenities especially with education, reliable transportation, medical services, recreation and entertainment facilities. By prioritising a location with a vibrant economy and properly analysing the location, you are able to position your investment where it can flourish.
Learning All The Details
When dealing with real estate in another state, remember laws vary. Ensure that you remain well informed. There are distinct planning laws to be mindful of when buying a property interstate such as stamp duty structures and other taxes affecting the total amount payable for a property. It is also worthwhile studying up on any stamp duty concessions or tax benefits you may be eligible for. Through spreading out your portfolio, you may be able to save more by staying within each state’s tax thresholds and also acquire a house for a lower price than you would in your state of residence.
Following Expert Advice
When it comes to investing interstate, consulting with a range of professionals can help you gain a solid understanding of the local property market and knowing the type of documentation you will need to close the deal.
Although it may be nerve-wracking to invest away from what’s familiar, taking the plunge and exploring beyond your state can lead to a more profitable investment and opportunities you might not be eligible for at home. Removing yourself from your comfort zone also means that you can avoid emotional buying and be completely certain the property meets your financial needs as an investor.