3 factors to consider for interstate property investment

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, he said.

After doing due diligence in the form of education and financial preparation, simply jump in and buy well.

At the end of the day, procrastination could easily be the biggest thing on the way to 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.

For first-time interstate, buyer’s agent Paul Glossop listed three of the most important things that investors need for interstate investment, particularly in the Brisbane market:

1. Flood mapping

As simple as it is, a lot of investors usually forego this step during their preparation for interstate investment, which could be detrimental to their portfolio moving forward.

According to Mr Glossop, water can bring many issues to a household in the long run if not well maintained.

“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 one in 100 year flood events with property.”

2. Local council zonings

Local council zonings can give investors an insight on the area’s supply and demand trends, according to Mr Glossop.

“Know what they’re looking at doing over the next five, 10, 15 years,” the buyer’s agent highlighted.

“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. Personal objectives

Finally, Mr Glossop reminded investors to know their goals and stick to them especially when making big investment decisions.

Investors should avoid buying properties simply for the sake of buying, or the fear of missing out.

Instead, they should consider the strategies that they would use over the long term, as well as the risk mitigation steps that could be necessary moving forward.

“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,” according to him.

“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.” 

Ultimately, regardless of location, investors will benefit from knowing themselves first before jumping onto any financial investment – their capabilities, limitations, and goals, both long term and short term.

After all, no property investment journey will ever be the same, so the best strategy will be the ones crafted specifically for their own circumstance.

“It comes down to how much more do they have up their sleeve as opposed to how long will it take you to get as up to speed as other investors,” Mr Glossop concluded.

Tags:

• Brisbane
• Expert advice

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