It’s a Common Debate: Purchase Property Close by vs Further Away
Whether you are a seasoned Australian property investor looking to diversify your Australian property portfolio, or you are a first-time investor eager to explore Australian property investing opportunities beyond your local market, you’ve come to the right place.
For most Australians, our financial philosophies and principles are passed down to us from our parents, friends or relatives.
“Never buy property you can’t visit yourself” or
“You must be able to see your property in person before you buy”
Sound familiar?
For this reason, many Australians are wary of investing in areas that they aren’t familiar with – and for good reason, you may be:
- Unaware of regional property trends and values
- Uncertain about tenant demand and rental income stability
- Finding it hard to find trustworthy local advisors and managers
- Struggling with varied local laws which complicates compliance
- Burdened by in-person searches and inspections
- Unfamiliar with local amenities and services
It’s for these reasons that the generations before you will tell you “Invest where you know”.
However, today – we’re living in a very different world.
Things have changed and there are so many more
investment opportunities that lie beyond your backyard.
Sure. Investing in a faraway property (interstate or as an Expat overseas) may seem risky.
However, there are three things you need to know:
- Australia offers so many different real estate markets, each that can offer you great investment potential
- Most of the distance challenges can easily be overcome with technology and a trusted Buyers Agent
- All of this distance hassle can definitely be worth it if it means more money in your pocket and a better long-term deal.
In fact, it’s very typical for Australian investors
to never visit their investment property ever!
We work with Sydneysiders who have property in Perth or Tasmania, people in Victoria who have invested in Darwin and more. It’s very normal.
After all, an investment property is a means to financial wealth (and nothing more).
So, it’s time to cast those long-held restrictions aside and think outside when it comes to Australian real estate investing.
That’s why our team at Porters Invest have compiled this guide: to delve into the steps, considerations, benefits and strategies of property investing away from your Australian local area so that you can unlock the full potential of Australia’s property landscape.
We promise this article is well worth the investment.
Understanding the Australian Property Market
Any discussion of the Australian property market investing should begin with a clear picture of where the market currently stands.
In fact, doing so is a great indicator of the value of investing away from where you live, whether you are:
An Australian Expat living overseas looking to buy in Australia
OR
An Australian property investor looking interstate to buy
While the future of any property market is never certain, the consensus is that the Australian property market will continue to grow as it has done historically, making it a great market for those investing interstate or from overseas into Australia.
In fact, for the last 30 years, the Australian property
market has proven to be a stable and highly
successful form of investment growing 6.8% per annum
over the 30 years to 2022.
The other important point to make about the Australian market is that there is enormous variability (and therefore opportunity) in different investment locations right across the country.
In other words, just because you live in a specific area, doesn’t mean that investing in that area presents the best financial decision for you.
For instance, when people invest in shares, they gladly invest in companies that are headquartered all over the globe… so why not do the same for property?
Just take a look at the current median dwelling value of Australia’s capital cities:
- Adelaide: $757,448
- Brisbane: $843,231
- Canberra: $840,100
- Darwin: $502,120
- Hobart: $655,170
- Melbourne: $780,437
- Perth: $736,649
- Sydney: $1,156,020
While these prices will ebb and flow over time, the point is that:
At all times in the Australian property market, there is
such a vast range of price points and markets between
suburbs, regions and states.
Investing away from home is about finding the one
that fits right for your investment goals.
But before diving into how you can make specific market decisions, let’s explore the broader benefits of property investment away from where you live.
The Benefits of Investing in Different Property Locations than You Live
So, why not just stick to the local area which you know best?
Well, one of the primary advantages of investing away from home is diversification.
By spreading your investments across different states or localities, you can mitigate risks associated with:
- localised property market downturns
- regulatory changes
- market fluctuations
- local market unaffordability
- not aligning with your financial goals.
This strategy helps in balancing your Australian property investment portfolio.
All you need to do is open your mind and open up
your property investment search beyond your local suburb.
It’s about investing in a market that suits you best.
Many regions across Australia, like Brisbane for example (+59.8% since March 2020), are experiencing significant growth due to factors such as:
- infrastructure developments,
- population increases, and
- other forms of economic expansion.
Yet, so many Australian property investors are missing these opportunities!
So many property investors in Sydney, many property investors in Melbourne, and many Expat property investors overseas will overlook these opportunities because they aren’t familiar, even with more affordable price ranges and higher rental yields on offer.
So, essentially, investing in property away from home all comes down to making a well-informed and well-supported choice.
This allows property investors to access a greater number of markets and therefore a greater number of potential investments, increasing the likelihood that they will find one that perfectly suits their lifestyle and goals.
Legal Considerations When Investing Away From Home
Each Australian state has their own methods for governing the sale and investment of property and this may differ from the state or country in which you reside.
These legal differences can arise concerning the:
- sale and transfer of property
- contracts for sale
- cooling off periods
- land and property tax
- deposits and forfeits
and in many other aspects of your investment.
So, how can you stay on top of things?
We suggest you check out our:
Ultimate Guide to Interstate Property Investing in Australia
and
The Ultimate Guide to Expat Property Investing in Australia.
Or get in touch with an expert investment property Buyers Agent, one who not only understands the legal discrepancies between states and countries but interacts with them daily basis.
That’s where Porters Invest comes in!
Porters Invest Can Help You Invest in Australian Property Whether You Live Interstate or Overseas
Our expert Australian Investment Property Buyers Agents at Porters Invest will guide you toward the life you’ve always dreamed of with a proven approach to smarter Australian property investment no matter where you are based in the country or the world.
From conducting extensive property market research to negotiating on your behalf, our investment property buyers agents will handle every aspect of the real estate buying process for you, saving you incredible amounts of time, money and hassle.
In other words, WE DO ALL THE HARD WORK, you reap the reward.
Get in touch, today!
