Whether you’re looking to move or invest interstate, there’re a few things worth taking into consideration before you take the property plunge.
Like, for instance, do you have plans to travel between now and 2058? Then take WA off the list. Prefer to wear closed toe shoes to the supermarket? Goodbye QLD. Unphased by politicians in North Face puffer jackets? VIC won’t understand you.
Jokes aside, here are some helpful hints for buying an interstate property.
You don’t have to see it to buy it.
The year is 2022. We’ve been working, socialising, and even attending weddings via video link for almost two years. By now, real estate agents are well equipped with the technology to give you a thorough virtual tour of a property and show you every nook and cranny of the place. If you’re buying off the plan there’s even less worry with buying sight unseen, and if the property was recently built than video tours should suffice.
Also, sometimes people become emotionally attached to a property when they visit in person and these feelings can get in the way of making a logical decision (similar to when you go to the snack aisle of Coles on an empty stomach). This is particularly true if you’re buying an investment property and start critiquing the kitchen, even though you’re not ever going to be the one cooking in it. Having some space between you mightn’t be such a bad thing, after all.
You do have to use a “buyer’s agent”
If you’re not familiar with the area you’re looking to buy in, seek advice from someone who is, and hire that person to be your buyer’s agent. They’ll save you from making out-of-towner mistakes because they know which areas have high vacancy rates, safety issues, flight paths, new house and land designated, traffic trouble, and anything else that might reduce long-term property growth and rental prospects. They also have insight into which suburbs are on the rise or soon to experience growth. And most importantly, they almost always ‘know a guy’ that’ll get you a good deal on essential services.
Speak To An Expert
Schedule in a time to discuss your situation with a home loan specialist
Don’t pretend you know what you don’t know
While your buyer’s agent will be invaluable when looking to buy interstate, it’s still important for you to consult widely with everyone from conveyancers to building and pest inspectors to local property managers. The latter are particularly important because they provide thorough information and explain their role and rates—which can range from anywhere between 3% to 11%, which should be factored in when creating your budget. all about it.
Speaking of budgets, familiarising yourself with council rates and insurance rates for particular areas will also save you a WTF-number-crunching-moment, as will researching the differences in stamp duty and land tax between states. Essentially, the more you know, the better.
Do pay attention to the state-specific details
While all states in Australia have similar contracts, you need to note the differences in the contract of sale. Every state differs when it comes to everything from disclosure documentation to strata reports and vendors’ statements. With that in mind, be sure to check that any professional you’re bringing on board has a state-based licence and is local to the area you’re looking to buy in. Did you know that in QLD if a purchaser misses settlement but just one day they can lose their property and their deposit? This couple can tell you. Not sure who to ask? Don’t worry, I bet your buyer’s agent knows a guy.
Take the first step
If you’re a keen to tap into extra equity in your property or a homebuyer who wants to explore what options are available to you – whether that be upgrading your home or buying an investment property interstate – book in a call to discuss your borrowing capacity. We’d love to run through it with you.
