More Australian investors have got their eyes on interstate property markets, with new research finding 45 per cent are exploring options outside of their local area.
According to the 2019 PIPA Investor Sentiment Survey, 45 per cent of investors are looking to buy outside of the state that they live in over the next 12 months.
Furthermore, the survey found that 63 per cent of investors are considering rentvesting, whereby they rent in one location and invest in another.
Commenting on the findings, PIPA chairman Peter Koulizos said, “Borderless investing as a bona fide property investment strategy had blossomed over recent years.”
“More and more investors are recognising that there are myriad investment opportunities around the country rather than being blindsided by what’s happening in their own backyards,” he said.
“Australia has eight capital cities and dozens of major regional areas, which have property markets at different stages of the market cycle at the same time.”
For example, Mr Koulizos said, “A case in point was growth that had occurred in locations such as Hobart, Adelaide, Canberra as well as parts of regional Victoria, Queensland, Tasmania and New South Wales over recent years, while property prices were reducing in Sydney and Melbourne”.
“Savvy investors always consider the locations that offer the best market fundamentals as well as prospects for capital growth over the medium to long-term,” Mr Koulizos noted.
“They chose not to follow the masses, but to invest in locations before prices start to rise, such as in Sydney in 2012 and in Melbourne not long after.”