Tips for buying property interstate

As many property investors know, the city you currently call home isn’t always the best location to invest.

But there are many steps to the buying process, and they can differ from state to state.

There are plenty of reasons to purchase property interstate.

You may want to diversify your portfolio to lower your risk profile.

Perhaps you're planning a move next year, but you know that now is the right time to buy.

Or maybe you've heard that the next big up and coming suburb isn't on your doorstep, but 2,000 kilometres away.

Even if you are a seasoned property investor in your local area, there are some key differences between buying locally and purchasing further away.

Investing interstate can be difficult, especially if you're not experienced and you're looking to invest somewhere you haven't lived before.

There are a range of experts who can assist you with an interstate purchase and help alleviate the costs of travelling back and forth.

Conveyancers or specialist lawyers can help prepare and lodge your legal documents (including your contract), handle your deposit, research the property and calculate your expenses. They can also assist in the settlement process.

A buyer's agent can help you inspect properties and do a lot of the footwork for you. They may also be able to refer you to reputable local experts to help carry out inspections.

Make sure you communicate honestly and often with those helping you invest interstate, and make the most of the experts available.

While buying property interstate can seem like a daunting task, there are a lot of benefits to developing your property portfolio beyond the bounds of your local neighbourhood. Make sure you contact reputable, independent experts and do your homework.

Don’t forget that stamp duty or land transfer taxes change from state to state, and depend your property’s intended purpose.

Each state’s revenue office website has a stamp duty calculator that can help you estimate how much you’ll be charged.

Purchasing interstate is a great way to spread risk across your property’s portfolio or capitalise on growth areas – just make sure you do your homework.

For more real estate traps and tips visit realestatetraps.com.au