Many property investors opt to purchase assets away from home, and while it could be challenging exploring unfamiliar areas, success isn’t too out of reach for people who are willing to understand the markets as well as the varying factors that could affect its cycles.
According to Smart Property Investment’s Phil Tarrant, who is an avid investor himself, the best first step is to educate yourself because one property market could work very differently from another, and being well-oriented to these differences can help you navigate your way better towards success. After self-education, simply jump in and buy well—after all, procrastination is the biggest thing in the way of profit.
“It’s always a good time to invest in property, [provided that] it is the right time to invest in property for your particular circumstance,” he said.
His buyer’s agent Paul Glossop lists three things that can guide a property investor to his first interstate investing, particularly in the Brisbane market:
1. Know your flood mapping
There’s no reason why a property investor should forego this simple process, according to Paul, especially since water can bring many issues to a household in the long run.
“Go on to any local council website and they'll usually be able to drag out a flood map, you've got state flood maps as well,” he said. “It just gives you a good understanding of where you should and shouldn't be putting your money because there are some distinct issues with some 1 in 100-year flood events with [the] property.”
2. Know your local council zoning
Being aware of the local council zonings can give you an idea about the supply and demand rates in a particular area.
Paul explained: “Know what they're looking at doing over the next 5, 10, 15 years… [Brett] spoke about Logan, North Brisbane, out towards West Brisbane, towards Ipswich. There's a few particular markets along the older infrastructure areas there which are going to be strong if you're looking at that lower price point, as far as population growth and infrastructure [are concerned].”
3. Understand your objectives
Lastly, but arguably the most important tip for interstate investment: Know your goals and stick to them when making big decisions. According to Paul, investors should not buy properties simply for the sake of buying, and they should think hard about the strategies they will use throughout their journey.
“The old adage of, ‘The hardest million to make is your first million,’ isn't there by coincidence. It really is because most people want to chase it,” he said.
“A delayed gratification in property is the hardest thing to get used to, but compound interest and delayed gratification are one and the same… Make sure you don't overcapitalise to the point where you have to sell unnecessarily because that is when you'll lose money.”
At the end of the day, no matter where you plan to invest, it will always do an investor well to know himself first—his capabilities, limitations, and goals, both long-term and short-term. After all, no property investment journey will ever be the same as another, and the best way to go will always be the path to success that you created for yourself.
“I think it comes down to how much more do they have up their sleeve as opposed to what you will and how long will it take you to get as up to speed [as other investors]... It comes back down to your objectives, your goals, and your budget, and ultimately... to understanding what are you trying to achieve,” Paul concluded.
Tune in to Paul Glossop’s Q&A episode on The Smart Property Investment Show to know more about the right program to keep track of your property without going into depreciation, how to decide where to buy and which investment property is right for you, and how to identify opportunities.