Buying a property in a different state is all the same, right?
Wrong!
As an interested interstate investor in Australia, it can be easy to assume that, because we’re all part of the same country, each state has the same property laws, environment, buying processes and challenges.
Unfortunately, that’s not the case!
In fact, it’s often far from it.
For example, where I am in South East Queensland, the property landscape is completely different to say, Sydney or Melbourne – despite each of these areas bearing striking similarities to one another in so many other ways.
So, what’s the problem?
Well, this incorrect interstate property buying assumption often leads to a slew of common mistakes being made by interstate investors – and I’m not just talking about first-timers.
I’ve seen many seasoned real estate investors make these same mistakes as well!
But don’t worry.
I’m here to make sure you don’t follow them down the same path.
So, here are the 5 most common mistakes I see interstate property investors making time and time again – and how you can avoid them when building your portfolio.
1. Failing to carry out correct due diligence
Smart property investors know that doing due diligence is one of the main priorities when it comes to looking for the right suburb location to invest in.
However, what many don’t realise is that due diligence can look different, depending on which Australian state you’re searching for property in.
Each city and state has its own varying property factors that must be taken into consideration.
What’s relevant in the Queensland real estate market may be irrelevant in Victoria, and vice versa – but these differences are not always obvious.
What’s more, knowing where to find critical property information, such as flood maps or council approvals, can be extremely difficult as well.
A local Buyers Agent, however, can solve this issue for you by acting on your behalf.
2. Buying an investment property sight unseen
This is a MAJOR issue that I still see very frequently in my day-to-day work.
While I understand that viewing a property in person may not always be the easiest option for some interstate investors, I don’t believe this justifies buying the property sight unseen as the next logical option.
In my time, I’ve seen far too many Australian property investors do exactly this and hope for the best, only to be extremely disappointed or surprised once they get the opportunity to visit the property themselves.
Don’t risk investing in property that you’ve never had someone look at personally for you, even if it’s only in the next state!
That’s why, as a Queensland Buyers Agent, I attend the property on behalf of my interstate investment clients.
3. Not taking the time to build a reliable network of property professionals
For interstate investors who are not physically present, the ability to build a reliable network of property professionals in the area they’re investing in can be far more challenging than normal.
Oftentimes, this leads to Australian property investors relying heavily on local real estate agents, property managers and their contacts – most of whom they’ve never actually had the chance to vet and determine their trustworthiness or competency.
Naturally, this makes it difficult for the investor to ascertain whether these professionals are the right fit for their investment.
Of course, if these contacts do turn out to be unreliable or incompetent, this can negatively impact their investment over the short or long term.
This is why having a local Buyers Agent working on your behalf is so important.
For instance, as a Queensland Buyers Agent, I visit properties in Queensland for interstate property investors to help them make well-informed decisions when they can’t attend themselves.
4. Failing to familiarise themselves with local neighbourhoods and market knowledge
As I mentioned earlier, every property market around the country is different.
Within each, there are several local market dynamics, trends and nuances that many interstate investors just simply wouldn’t be aware of.
Of course, when it comes to finding the right property location to invest in, understanding which interstate neighbourhoods are preferable and which should be avoided is a crucial piece of the puzzle.
Without this local knowledge, a Sydney/Melbourne-based investor may end up choosing a property area in Queensland that seems promising but is actually quite risky or not primed for growth.
This can also often lead to overpaying for an investment property, meaning Australian property investors will struggle to see any decent returns over the life of their investment.
5. Not being aware of legal and regulatory differences
Property laws and real estate regulations vary from state to state.
This means that interstate real estate investors need to be aware of these differences to avoid any legal pitfalls and ensure they remain compliant with all local property requirements.
Of course, unless investors actually have access to a reliable Buyers Agent contact who can educate them on the differing regulations, this can make it very difficult to keep up and meet all their obligations as they go.
That’s where I come in.
As a Queensland Buyer’s Agent, my role is to minimise your risk as an interstate investor.
During my initial discovery sessions with potential clients, this is one of the first things that I explain to each of them before moving forward.
In working to minimise risk for property investors like you who are looking to buy in the Queensland property market, I can ensure that you:
- Don’t overpay
- Don’t overlook due diligence
- Don’t get misled
- Don’t buy a lemon
- Don’t limit themselves
- Don’t ignore red flags
Not only does this help you to make a more informed investing decision, but it also helps to reduce stress and save you time and money.
Are you ready to invest in the Sunshine Coast, Hervey Bay or South East Queensland Property Market?
Worth Property Investing can help. My team and I are passionate about helping you make the right investments to achieve your financial goals and lifestyle aspirations.
Think of us as your property-buying partner, here to support you in making the ideal property decisions and making the most of Queensland’s booming property market.
As your trusted, licensed Buyer’s Agents, we do everything from searching, connecting, researching, bidding, negotiating and securing the best investment for you.
