Sam Saggers CEO Positive Real Estate
Investors who are looking to decrease their risk and diversify their portfolio often have to look across state borders for their next property purchase.
We all face the opportunity of buying properties interstate and it's a actually a very good thing if we can diverse our portfolios, we can actually hedge our money far and wide and we usually can get reliable growth. In fact for the last 10 years of records, if you had a property in each of the major capital cities - one of those capital cities would always be going up in value. So we need to keep in mind we've got to spread our money everywhere. So what do we need to look for if we are buying interstate? Firstly; are we actually paying what a local would pay for or is our interstate money being used to actually actually create a benchmark in the market? So what do I mean by that? You'll look at a lot of off the plan properties sometimes as an interstate investor or what are the second hand properties trading for? They're a lot less than the off the plan - you need to be wary. Are you just being promoted the benefits of the property without necessarily the cons of he property? So you've got to do your research. And make sure that you understand what's happening in that marketplace and get yourself some great education about buying interstate.