How To Invest Interstate… And Why It’s A Good Idea

Should you stick to investing in your own neighbourhood?

After all, you have local knowledge. 

You can keep an eye on your investment. 

And of course, you love where you live!

But does that make it a great investment?

Well, consider this. 

There are over 15,000 suburbs in Australia. 

And what makes your suburb a great place to live, doesn’t necessarily make it a great investment. 

What Makes A Suburb A Great Investment?

There are a lot of factors which make a suburb a great investment. 

And when we select locations for our clients, we take them all into account. 

We analyse the local economy, future projects, demand for houses and how much supply is being developed. 

We also look at local infrastructure including hospitals and schools, future economic developments nearby as well as its ability to grow economically through road, rail and air links.

Plus of course the prospects for the state it’s in, as well as where it is in the property cycle. 

The best suburbs are ones which are about to boom, not ones which have already boomed. 

We recently published our latest locations report which lists the top 10 locations for investors for this year as well as a detailed explanation of why each was chosen.

And you can click here for a free copy. 

Of course, you might live in one of these areas, in which case … congratulations!

Maybe you should consider investing locally. 

However, chances are you don’t. 

In which case, your best returns will come from investing interstate. 

Here Are The Best Reasons To Invest Interstate

  • Access to the highest possible capital growth and rental yields in Australia. The sooner your house value goes up, the sooner you can invest again. And this means your wealth and income will grow faster. 
  • A wide mix of capital growth and rental yields to give you more strategic options.
  • A diversified portfolio to spread your and protect yourself against local fluctuations. This way you’re not dependent on any specific state’s economy. 
  • Expose yourself to different property cycles and economic conditions so your returns are more stable. Different states are in different stages of the economic cycle, and some states have stronger economies than others. 
  • Different markets offer houses at different price points, giving you more strategic options. You may want one house at a higher price, or you may want multiple houses at lower prices. This flexibility gives you more strategic options. 
  • A wider choice of different property types such as house and land packages, apartments and existing housing. Again, your strategic options are enhanced by investing across the country. 

 

As you can see, the best reason to invest interstate is having more strategic options at your disposal. 

It’s all about having more choice over your investments, so you can pick and choose from the best options across the country, not just in your local streets. 

And because everyone’s strategy is different, you can always find the perfect property which suits your needs. 

Myths About Investing Interstate: BUSTED

Of course, you might still be nervous about investing interstate. 

So let’s bust some of the common myths about investing interstate. 

Myth 1. “I don’t have local knowledge”

Admittedly, you’ll never know as much about any property market as your own. 

After all, if you’re like most people you track local house prices pretty carefully. 

However, this need not be a problem. 

Thanks to the internet, you can access free suburb reports, learn about different areas and even get accurate price information and history. 

And if you want the ‘crème de la crème’ of Australia’s top suburbs, you can get the top 10 suburbs from investors from our current hotspot report which includes detailed information explaining why each area has been hand-picked by us. 

Click here and we’ll give you a copy of our latest investment hotspot report

Myth 2. “There will be too much travel involved”

If you think investing interstate means lots of travel, think again. 

Buyers agencies like AllianceCorp make it safe to invest interstate without even needing to travel there once. 

Mind you, we strongly encourage all our clients to visit any area we recommend, to make sure you’re confident with your investment. 

However, not everyone does. And that’s up to you.

Thanks to tools such as Google Street View, you can check out the area without leaving your home. 

In fact, once you’ve purchased your investment, you shouldn’t need to travel there at all. 

Certainly not to conduct inspections. 

With the right property manager on your team, you can get regular inspections conducted reliably, and keep up to date on the condition of your property.

They can help you through any maintenance and work as well. 

In fact, there’s nothing you can’t do remotely with the right team in place.

Myth 3. “I don’t understand the legal and tax differences in different states”

Realistically, there are so many legal and tax laws in each state, you probably don’t even know your local ones. 

The good news is you don’t need to. 

Local conveyancers and lawyers can handle your purchase.

An accountant who specialises in property investing will take care of all your tax obligations. 

And of course, a local property manager will make sure all your state-specific obligations are taken care of.

Myth 4. “What if the state suffers a downturn?”

Any state can suffer a downturn, just like any state can boom. 

Even your own. 

And investing interstate reduces this risk. 

You can select the best location from a wider range of options. 

And you can diversify across different states to reduce the impact of any future downturn. 

If you only invest in your own area, all your eggs are in one basket and you’re heavily exposed to the local economy. 

The Verdict?

The goal of investing in real estate is to maximize your returns. 

It’s not something you’re going to live in or need to visit regularly. 

It’s about the numbers.

And by opening up options right across the country, you’ll have access to more options to choose from. 

You’ll be able to choose the best property for your specific needs from an area with the best prospects of future growth. 

And using a buyer’s agent like AllianceCorp, with the best people ‘on the ground’ it’s just as safe and convenient to invest thousands of kilometres away as it is one street over. 

Curious About What’s Available Across The Country?

If you want to see what your options are in different states, request a free consultation by filling out the form below.

Our consultants will take you through the benefits of investing in different areas, and show you the kinds of properties available there. 

They’ll also show you what your potential is to replace your income by investing in real estate, and teach you how it’s done.

 

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