As property prices continue to rise in Sydney and Melbourne it seems that more and more investors are looking to spend their investment dollars interstate – many right here in Brisbane. And while investing interstate can certainly diversify your portfolio, especially if the property (like that here in Brisbane) presents a lower price point.

 However, going into an unfamiliar market requires a bit more research and planning to ensure it is done correctly. Before you start spending serious money in a different territory, here are some tips to help you get the most out of your interstate investment:

 1.      Have a clear goal

Like anything in life, if you want to be successful you need to have an end goal – and investing in property is no different! Principal of HS Brisbane Property, Hannah Schuhmann says that investors should start with a clear goal about what kind of property they want and which areas they want to target.

“Before you start the hunt for that perfect property it is crucial that you have a clear idea of what you are actually looking for - this will help save a lot of time in the long run!  After all, you do not want to spread yourself too thin across a city you do not understand,” says Schuhmann.

 2.      Build a rapport with local agents

Once you have that clear goal in mind, in other words you know what kind of property you want and where it will ideally be located, you then need to find the right asset. Aka property. To help with this, it is a really good idea to start building a strong rapport with local property agents who can help paint a picture on what you can expect to pay for a certain type of property in that area.

 3.      Do your research

When you buy an investment property (local or interstate) research is a given. However, when you are heading interstate research is even more important. It all comes back to knowing what is possible with your budget in an interstate market. For example, what kind of property can you afford to purchase and in which areas? These are questions you will be able to answer yourself with some thorough research. Fortunately we live in an era where (thanks to Google) there are so many tools (like realestate.com.au) readily available at our fingertips.

 4.      Target the right area

Once you know which interstate area you want to invest in, make sure you investigate it like the back of your hand. Hannah suggests taking careful consideration of local amenities and infrastructures such as schools, hospitals and roads.

“Jump on a plane and take the time to go through the area in person. Better still, you cannot go past enlisting the help of a local agent to give you a tour as they are the ones with solid knowledge and experience of that area.

 5.     Compare apples for apples

When it comes to how much you should pay for a certain interstate property, you should never compare the price of properties in an interstate market to the price of property in your city.

Hannah likens this to the age-old saying… “apples for apples and oranges for oranges; you simply cannot compare the cost of a two-bedroom apartment in Sydney to the cost of a two-bedroom apartment in Brisbane as the two are just simply not the same.”

For example, just because a property might be worth $2 million in Sydney and you can score it for half that in Brisbane does not necessarily make it a good purchase. 

So there you have it. Hopefully with a little help from Google, a few flights back and forth, some dozen look throughs and the right agent, you will be well on the way to successfully building your interstate property portfolio.

Thinking of expanding your portfolio into the Brisbane market? The HSBP team can help take the guess work out of buying property for interstate investors – and overseas investors too for that matter!

Here at HSBP we offer years of industry experience and a deep understanding of Brisbane’s Inner City property market. But for us, it is about much more than that; we believe in providing a first-class experience while sourcing the best deal for all parties involved.

We pride ourselves on providing a highly personalised, one-on-one service to ensure finding the right property is as stress free as possible. For more information or to book an appointment with one of our professional property consultants, call 0419 782 133.