Nearly half of all investors looking to buy property next year have explored their options in other states, according to new research.
The latest Property Investment Professionals of Australia (PIPA) survey found that 45 per cent of investors will consider investing in different states.
A majority would consider rentvesting, renting in one location and investing in another, and about a third of first-time investors identify as “rentvestors”.
“More and more investors are recognising that there are myriad investment opportunities around the country, rather than being blindsided by what’s happening in their own backyards,” PIPA chairman Peter Koulizos said.
The property market is at different stages across the country, and investors recognise the different investment potentials, he said.
“Savvy investors always consider the locations that offer the best market fundamentals as well as prospects for capital growth over the medium to long term,” he said.
“They chose not to follow the masses, but to invest in locations before prices start to rise, such as in Sydney in 2012 and in Melbourne not long after.”
With the range of different investment opportunities, Mr Koulizos cautions new investors who try to make decisions without expert advice.
Investing interstate required a strong understanding of local markets and cycles as well as state-specific laws that can impact their return.
“These risks skyrocket when someone tries to do that in a location that they don’t understand, plus they often buy site unseen because of the distances involved and wind up with a dud investment in an inferior location,” he said.