JournalBuying Interstate
Why you shouldn’t just buy around the corner from your home.
One of the questions we hear the most is, “Why should I buy interstate?” For many, there’s far more comfort in buying an investment property in an area they are familiar with, close to where they live, which they can drive past regularly.
My answer is this: buying in another state can offer you areas that may get you better capital growth, better rental returns and enable you to purchase closer to the CBD or the beach than you can afford in your local area.
Remember why you’re investing
If you’re not buying the property to live in it yourself, then think of that purchase like you would when buying an asset for a business. Investing in areas that you may not have considered can offer you a better financial outcome or allow you to buy in at a cheaper entry price. It’s more about the numbers than the emotions that typically go with buying a ‘home’.
Different areas have different drivers to their property markets, population growth, jobs and infrastructure spending, and where these elements are emerging together, you will have no issues securing tenants in the future.
Areas that typically have higher population growth, such as South East Queensland, have had and continue to have strong tenant demand.
When you’re able to approach your purchase objectively (that is – not worrying about being able to drive past it often), you’ll increase your opportunity to secure the best property, capital growth and rental yield your budget can buy.
The better you do this, the more options it will give you to pay down your primary mortgage faster, or reload and go again with another investment property, if that’s what your wealth growth strategy desires.
As always, we’re here for questions – call Jamie on 0439 005 609.
*Seek advice from your Accountant in relation to depreciation.