If you’re an avid investor in the property market, you’ve probably realised many of the best buys aren’t necessarily in your own backyard. And while you’re interested in those interstate hot spots, you’re more hesitant to invest in unknown territory.
Now, if that sounds like you, you might be wondering how you can safely make an interstate purchase. In particular, you’re wondering what the most important things are that you should look out for.
There are 3 things to consider about an interstate purchase before you take the plunge.
- Research key data points about the suburb
Start by diving into the data and find out the specifics about the suburb you’re interested in.
Look at the suburb’s vacancy rates, social housing and what the crime rates are. It’s also worth finding out whether there are any flight paths in the area.
As a buyer’s agent, I always explore these factors, in addition to whether the area is likely to see good growth and if any incoming property supply will affect that growth.
- Understand the legal implications of an interstate purchase
Legal considerations are the second important factor you should investigate.
That’s because stamp duty and contractual requirements can differ between states.
For example, if you were to invest in Victoria, you would find those stamp duties are higher than in Queensland.
When it comes time to do the contract, you might find different terms at play here too.
For example, some areas can be good for proceeding with conditional approval, while others require unconditional approvals straight away.
- Talk to a buyer’s agent for on-the-ground insights
The third point I’d like to make is the most important when it comes to getting the most bang for your buck on your investment.
I recommend you talk to my team or a buyer’s agent you already know.
Nothing compares to talking to a buyer’s agent who has knowledge of that particular area and has had hands-on experience in negotiating contracts there before.
A combination of access to critical data points and a wealth of expertise positions a buyer’s agent to help you understand the market you’re interested in and make a sound investment.
Follow these 3 suggestions, and you’re well on the way to expanding your portfolio with quality interstate investments.
