When making the jump to investing in an interstate property, there’s more than just a price point that needs to be considered.
Property investors who only look to their immediate cities could be short-sighted and should consider opportunities further afield. However, in doing so, investors need to focus on more than just compelling price points.
There are different property cycles across the Australian economy all the time so investors considering an interstate purchase need to be aware of what is occurring in their target areas and can do so by seeking out the experts in those locations that have proven track records.
The second step is assessing the vacancy rates. Low vacancy rates is always a good indication of how an area is performing, and there are quite easy ways for investors to access this information online.
Investors should also look to where there’s good infrastructure going in, where the state has made a good investment in a particular area that should help to develop that location on the back of the infrastructure going in.
Investors need to watch out for high vacancy rates as another guide. Are there high levels of over supply? This means that investors should be cautious.
It’s really about doing your investigations, finding out who the experts are in a particular area and going to consult with them, look at their testimonials around their success and choosing them on that basis. It’s very hard to try to be an expert in a different area yourself and we should be very careful about buying in another state just because the price point is compelling alone.