Buying an investment property interstate comes with a unique set of challenges
Could an interstate investment be right for you? It’s important to remember the market in each state is different.
It can be tempting to invest in your local area. After all, it’s handy to have a rental property a short drive or even a brief stroll away from home. But diversifying your assets is one of the golden rules of investing. Buying interstate can deliver valuable gains for your property portfolio. But it’s a good idea to consider these tips before you book a flight.
It can be scary investing in an area you don’t know well. So it’s a good idea to do research. Ask your Aussie Broker for a property report or suburb report, and do online searches to investigate the area. Consider demographic trends, local amenities and areas to avoid .
Stamp duty is one of the major costs when buying property. This is different in each state and territory. You’ll also want to find out if any stamp duty concessions apply to your situation. Some of these schemes may require you to live in the state you’re buying in.
Also factor in other costs such as land taxes, title transfer fees and settlement costs. These may also vary by state .
It’s an extra cost. But it could give you peace of mind as a long-distance landlord. Find someone you can trust to help you find tenants, collect rent, look after bills, handle repairs or complaints, and set your rent based on market rates .
Each state and territory has different laws and regulations governing the sale and transfer of property. Contracts for sale also vary by state. So it could be a good idea to engage a local conveyancer to help with the paperwork. Cooling off periods also differ. Some states have cooling off periods of up to five days. Others may have no cooling off period. The portion of deposit you forfeit if you don’t proceed with the sale may also differ .
But heading interstate could deliver the outcome you’re after if you’re in the market for an investment property, looking to diversify or want affordability.
Speak to an Aussie Broker today about getting the home loan that will help you achieve your investment property goals.