Professionals Real Estate 
The good thing about buying an investment property is it can be located anywhere. However, you need to be careful you’re making the right decisions.
Your property ownership dream doesn’t have to stay close to home.
Tips for buying an out of town property
The exciting thing about investing in property is you have the whole country to explore. As pricing in metropolitan areas shifts, there are opportunities for capital gains in other locations. It’s an opportunity to be creative and can even be an excuse to travel!
However, if you decide to buy somewhere far from your home base, there are a few things to keep in mind.
Three steps to buy an out of town investment property
1. Do your research
If you want to buy in an area you’re unfamiliar with, it’s important to do extra research. Look into why your potential tenants would want to live in your investment property, how much rent they will pay and whether this will cover your costs.
Be practical: If you’re likely to lease the home to a university student, figure out how they will get to campus from your property if they don’t have a car. If it’s a family home, is it close to the local school?
As part of your due diligence, research capital growth potential and find out about future infrastructure in the town or suburb. A new hospital, for example, will attract healthcare workers who are looking for accommodation and if you’re in a convenient location and offer the right style of home you’ll be able to generate good rental returns.
You may not be able to visit the home in person; in this case it may be wise to enlist the help of a local buyer’s agent to check the place out, share their feedback and help you make a reasonable offer. Otherwise, ask the selling agent to take you on a virtual tour and send some extra photographs. The good thing is you don’t have to buy a property you personally love; it’s more about ensuring it ticks boxes in terms of tenant appeal, growth potential and financial viability.
Don’t forget to book a property inspection and examine the report in detail. Your conveyancer can help you to figure out if there are any potential problems which could add to the cost of ownership.
A final thing to research is stamp duty and any relevant taxes you will pay as an investor in the state where you plan to buy. This will help you figure out your budget.
2. Have a back up plan
Of course, as with any investment property, there is always the risk that you won’t find somebody to rent it. One school of thought says you shouldn’t invest somewhere you would never live yourself, so keep this in mind, but also have a plan for what you will do if the home is suddenly empty and you are a long way away.
You may have an option to lease the home as an Airbnb rental if you buy in a popular holiday destination, or you might buy your out-of-town investment property with a plan to relocate yourself when the time is right.
3. Get great help
If you’re considering buying in a town or suburb you’re not familiar with, reach out to a local real estate agent. This will be a point of contact who can share local reports and information to help you make a decision, and also let you know when a suitable home is about to come on the market.
Once you have made a purchase, you need to know it is being looked after as you won’t be able to quickly visit yourself if there is an issue. A local property manager will help you source reliable tenants and they will also conduct regular inspections and take care of maintenance so the place stays in good condition. They will have the right contacts for fire alarm inspectors, repair services, pest control etc, so you’ll be saved from scouring the internet to find someone to help in an emergency.
The right purchase, at the right time, in the right place can be a fantastic investment so don’t be afraid to search for an investment property somewhere far from your home base.
