WEALTH HUB JOURNAL

5 Things to Know About Interstate Investment

It’s smart to diversify your property portfolio, and purchasing real estate outside of your state or territory can be a great investment if you have the right strategy.

However, fees and other aspects of the purchasing process can vary widely from one state or territory to another. So it’s key that you do your research before buying.

Here are some things to keep in mind as you decide whether to invest in an interstate property.

1. You’ll need someone to manage your property

Even if you’re just over the state line, you should enlist a local property manager to look after your interstate property. They’ll understand the demographics of the area and be a source of valuable localised market knowledge. You want to have your thumb on the pulse of any market you invest in, and having a local property manager is the best way to do that.

You’ll pay your property manager a percentage of the income you make renting the property. In return, they’ll find the tenants and take care of repairs and general upkeep.

Wealth Hub Australia has access to property managers nationwide. By working with us, you’ll share in our good reputation in states and territories across Australia — rather than starting from scratch as simply another landlord from out of state.

2. Understanding new markets is a challenge

There are more than 100 significant urban areas in Australia with populations over 10,000 people, and numerous others with similar populations. Each of these cities and towns represents a distinct real estate market. So there are plenty of prime investment opportunities to discover if you cast a wider net.

Even if you’re deeply familiar with your own real estate market, you’ll have a lot to learn once you venture further afield. You’ll need to understand the cycle of the market in any place you look, and it can be difficult to know exactly what you’re looking for or how to go about it. But you shouldn’t let these challenges discourage you from investing in other markets.

The professionals in our referral network can assist with your due diligence and help you identify prime opportunities in every state or territory in the country. At Wealth Hub Australia, you’ll have access to the knowledge and experience of experts who can help you build your property portfolio and select the right investments for your future.

3. Different states have varying fees and legal requirements

You should expect the expenses, fees, and government charges you’ll encounter when buying an interstate property to be different than in your own state or territory. There is no national standard. Rather, individual governments at the state level decide charges like council rates, registration fees, and stamp duty.

When you have the full picture of the requirements you’ll face, you can budget effectively and maximise your buying power.

Other things can vary from state to state, like the offer and acceptance process, legal documents, and specifics of your contract. At Wealth Hub Australia, our network of professionals will help you navigate all costs and legal requirements when purchasing interstate property.

4. You don’t have to travel for the pre-purchase inspection

You can travel to inspect potential property investments in person, but it may be more practical to leverage technology for your pre-purchase inspection instead of flying from Brisbane to Perth, for example.

Today we can do so many things remotely, including pre-purchase inspections. Video calls allow you to take a live tour of the property, and photos and videos can give you all the information you need to make your decision on an investment.

At Wealth Hub Australia, we can connect you with property managers nationwide who will visit the locations and facilitate remote inspections.

However, if you feel more comfortable making an onsite inspection, especially if it’s an older property, that’s of course an option. In fact, you may be able to deduct your travel expenses at tax time. We can connect you with qualified advisers who will help you determine this as well as anything else related to tax and your investment properties.

5. We can help you make the right investment decisions

At Wealth Hub Australia, we help everyday Australians navigate their investment journey, build wealth, achieve their investment goals, and reach financial independence. We will walk you through the process step by step. Whether you’re looking to purchase a local property or secure an interstate investment, we’ll be on hand to offer the expertise and support you’ll need as you make your decisions and build your investment portfolio.

How can you know if you qualify? Let’s have a strategy session if you have one of the following:

• $60k in equity
• $65k in savings
• $150-200k in your super fund

If you have at least one of those, contact Wealth Hub Australia today to get started.

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