The quick guide to Remote Property Investing
Who hasn't dreamt of one day buying a property investment? A nest egg that could hopefully provide us with immediate and ongoing positive cash flow, as well as hopefully appreciating in value over time. When done right, investing in Australian real estate has long proven to provide above-average ROI (return on investment).
Why Investors are looking towards Remote Areas
Traditionally, property investors have tended to invest within or close to the local area in which they live or work. Psychologically, this has been because investors are familiar with the area, it is easily accessible and manageable.
However, trends within Australia have shown that increasingly investors are more comfortable investing further afield.
Cost of Acquisition vs ROI
For many real estate investors, the cost of purchasing a rental property in a metropolitan area or near the big cities such as Melbourne, Sydney and Brisbane may simply be out of reach. For many, the rental return is not adequate to justify the purchase i.e. a bad investment.
Changing work economy/culture
With the ongoing disruption caused by the global pandemic, the population has and continues to adapt. New working practices mean that many are able to work ‘from home’ and remotely. As such, remote areas and their property are no longer seen as ‘out of the way’ or unavailable.
Many investors will recognise that many regional areas are increasingly attractive and rising in value as many demographics ‘flee’ to find a seachange. Compounded by an international travel ban, remote areas are buoyed by increased demand from holidaymakers, young families and remote workers.
Increased awareness and knowledge
There are many easily accessible online tools and experts now that can really narrow down and highlight hotspot areas for investment that not too long ago most investors would be unaware of. Closures and restrictions have meant that experts and real estate agents are increasingly relied upon. Adapting quickly, these companies all offer video and drone capabilities to conduct virtual inspections, and there are many online auctions. Buyers agents and other property professionals can now locate and view properties on your behalf and can assess the viability of the investment for you - often without you having to leave your home.
According to the Real Estate Buyers Agents president Cate Bakos “This is a moment in time that has changed the way we buy property. Technologies around Verification of Identity [VOI] and online platforms around property settlements and contracts have revolutionised the buying process”.
More for your money?
When comparing prices with the major cities, it is easy to be overwhelmed by the large plots, generous house sizes and/or amazing views. As buyers reel from a market stuck in 5th gear, the temptation to look further afield increases. With the combined factors described in this article, the prospects for successfully investing in remote property remain high.
Always remember your intentions for acquiring investing in the first place. Assuming you don't want to live in this home at a later date, you will want to take all emotion out of the purchase and rely on cold facts and the research that you have done to ensure it is a good investment. Secondly, and especially if you plan to do a virtual inspection, ensure that you have arranged for your Pest, Build and Legal inspections.
All information contained on this website is for your reference only. You should always make your own enquiries and seek independent legal advice in respect of any information about real estate law and the purchasing of real estate and related subjects. This website may contain hyperlinks to websites operated by parties other than Pest Build Legals. Such hyperlinks are provided for reference only. Pest Build Legals does not control such websites and is not responsible for their contents.