8 tips for Interstate buying

The Melbourne and Sydney property markets are super, super hot right now. So I've created these eight top tips for investing interstate because this is where we're going right now. Hi, I'm Dax. I help people build their dream lives through property investing. Now if you were to buy right now in Sydney or Melbourne at the top of the market as an investor, it could take you a long time to, to, to build your wealth and live off passive income if that's your strategy to exit the rat race. Most people can get this wrong because it's like based on their, their focus on where they want to go to. So that's why I've come up with these eight top tier tips. On investing interstate. So what you should you consider when you want to be a borderless investor? A lot of the time you're looking to diversify your portfolio. You want to make sure you're making, you know, buyers in different markets at different times to, to, to level out the playing field for you. So what I've found is buying into state property has a lot of similar rules to buying locally. But there's a few additional factors that I want to take you through as well. So here are my top eight. So number one, we really do not want to buy with our heart, we want to buy with our head. Oops. Okay, this is really key because it's not where you're going to live, it's not your end dream home, it's an investment property. So we really want to make sure that it's not about how it looks or what it looks, it's all about the numbers. And we focus on how that looks to you. Number two. So what we really want you to make sure is that you've got this strategy, you've got your investment plan, you've got steps 1, 2, 3, 4. What that looks like, once you've got your investment plan in place, really helps you drive where you're going. And this will really help you determine what your first property or your next property is to buy. Okay, so number three, we want to make sure that you're buying investment grade properties. Now what does investment grade properties mean? It means that they're outperforming the market, they're giving you more return right now. And also they've got the long term growth as well. Okay. So these are not things that you, you may not live in or may look at and go, I'd never live in that. But there's pockets of the market that people love these things and will pay rent so that they can Pay your mortgage and put money in your pocket as well. Okay? Now number four, what we're looking at here, as you know, it's all about location, location, location. Now location, location, location also means looking for the right property in the right place at the right price. Price. Okay? We really want to make sure that we are lining up with our investment plan and really nailing what that looks like to find the right property. Okay, Number five, we really do not, do not, do not, do not rush, okay? This is all about being in the market, not top timing the market. Okay? There's some areas around, you know, Sydney and Melbourne, you know, you may not want to invest right now because it is the top of the market, but a lot of other times it may be worth investing at other times, but it's about, it's important to spend time in the market. And that's where property wealth really is successful. Okay, Number six, really what we want you to do is and I will try and draw this as well as I can, this is a magnifying glass. And what we want to do is we want to do our due diligence, okay? We want to do our research, we want to find out what's going on in the area. We want to find out infrastructure developments, what's in the latest budget, what's development plans, what's the rental yields of the area, historical prices, particular investment and employment opportunities, what the population growth looks like, what's population mix. So really want to do our homework, get that all in place so that, you know, people like ourselves will pull that together for you. Seven, there is the magical calculator. Okay, this is our feasibility study. So how feasible is buying that property once you've done the due diligence, once you've done all the calculations, you really need to worry, watch out for when you're doing interstate things like stamp duty is different in every state. The land tax structures are different every, every state. Contracts are different in every state. Development processes are different in different states. In local councils there's different things as well. So you really want to sum all that up from our due diligence on stage six into seven with all the ownership costs. So you can continue consider everything and what happens is coming out of that. If we get cash flow, if we get capital growth is all the numbers add up, then it's a great buy. And number eight, put this right in the middle. Number eight is don't be afraid, don't be afraid of not seeing it. Okay? So we can do an eyeball here. If you've got people in the ground like my team. We can see it, we can give you photographs, the due diligence, the historical data that you can do, a summary of it. This is, you may never go buy this. I know investors who've got properties here in Melbourne that don't go buy them either. So it's really key to make sure that you, you know, you can really add the numbers up. It's not from the heart, it's from the head. Because, you know, the classic mistake of concentrating on investments in your backyard is seldom profitable. Means, you know, you may be living in that suburb for years and years and years and, you know, your whole life, but it doesn't mean it's a good idea to invest there. Okay? So hopefully that's really helped you grow, understand how to do this. You know, there's a couple of advantages that I want to take you through. You know, investing it spreads your risk across many markets. There's also benefits in different growth cycles. So something has a boom, you can take some of that equity and when a boom's coming up, another one you can move into there. Investing in Interstate can reduce your land tax by bill as well, which is key, you know, so that makes perfectly sense to see, you know, you don't have to visit it at all. So investing Interstate is not without its own dangers, okay? Because there's different markets in different areas and you really want to do your due diligence to make sure that this is right. And, you know, you want to make sure that there's not an oversupply of apartments that could perform poorly while demand for another suburb, which has fewer apartments and booming in the same state. So I hope these eight top tips have really helped you with feeling comfortable reducing the risk. You know, not having to see it doesn't mean as an investor, you have to do it, do this all yourself as well. You know, somebody like us representing you can find exactly what you're looking for in those local markets and, and delegate the legwork to us to help you out. So if this resonates with you in some way, shape or form you want to build your dream lifestyle, then click below. I'd love to have a chat to you and see if we can help you on your journey.