Are you planning to buy property Interstate?
Buying properties interstate has been quite popular for many property buyers and investors. According to core logic data, in 2023 almost 23% of all enquiries for property purchase on realestate.com.au came from buyers based in different state. The enquiries have been going upward as buyers are seeing more capital growth and rental returns in many interstate cities and suburbs.
South Australia, Queensland and Western Australian are three most popular states who are attracting interstate buyers over the years. The surge of interest from interstate buyers can be due to various factors such as lower property prices, rental yield, capital growth and investors looking to diversify portfolios.
In 2023 many suburbs in SA, WA and QLD have seen very strong growth in property prices with many suburb values going up by 20-30% in a year. The supply of properties for sale, population growth, building activity and migration have all influenced the growth of property price.
We are noticing many clients applying for home loan for purchasing interstate. To assist home buyers, we have put together a checklist to make the transaction easier. Below are few of them.
Before You Begin
Borrowing power: Speak to us to work out your budget and borrowing power, consider expenses not only repayments on loans but also costs to run the property such as property management fees, rates, insurances, strata/body corporate, repairs and maintenance etc
Location research: Recent sales data, rental yields, vacancy rates in target areas
State and suburbs : Short list the areas, suburbs you would like to invest
Finding the Right Property
Listings : property listings can be found in realestate.com.au and/or domain.com.au
Online maps : utilise online maps to check the area, nearby houses to feel the location
Selling agents : contact selling agents, ask questions about property, areas, infrastructure, schools, demographics etc
Virtual tours: utilise them to get a feel for the property, request agent to inspect the property via video call or ask them to send videos of the property
Suburb research: demographics, amenities, infrastructure plans, future development
Environmental issues: research if the areas have any history of environment issues, e.g., if you are buying properties QLD, we recommend you do check if the properties have been impacted by flood or other events
Buyer’s agent: involve buyer’s agent if you want experts to find and recommend properties (please note there may be costs/fees involved)
Travel: if you have time, you can travel to the area you are looking to invest in so you know what you are buying
Making an Offer
Once you know the property fits your requirements next step is making an offer, please note that due to high demand in certain location you may just get one or two opportunity to make an offer, check recent sales around the area, talk to us to see the current market value before making an offer.
Speak to an agent before making an offer if they can give some tips or the range of the property price they are expecting and how much interests they are getting for the specific property.
High demand properties, if the property have high demand, please note that there may be too many offers and may sell for much higher prices than the actual value of the property.
Once offer accepted – Due Diligence
Building & pest inspections: use qualified inspectors to conduct building and pest inspection to ensure there is no major issues in the property. (if it is an auction, please ensure you organise the inspections before the auction)
Conveyancing: involve conveyancer to review contracts and all other property transaction so you understand your rights
Property manager
Investment purchase: if you are purchasing property for investment purpose, you may need to look for property manager so they can manage your property after settlement. Contact local property manager or even selling agent to compare costs/fees to manage your rental property.
Although buying properties interstate is not easy as buying at your own area, however if you use all available tools and utilise all resources it will help you to make informed decision. We recommend you research and speak to local agents, friends, and families if you have any in that area to understand more about the location and utilise above tips before making decision.
Getting started
If you would like to discuss further regarding buying property interstate and need assistance with investment loans and understand various costs to setup, please contact us and we can arrange a time to discuss.
