10. “Buying interstate is a great way to diversify”
Buying properties interstate can mitigate the risk of some local factors, but investors should be aware that all properties are affected by the macro economy. Interest rates, inflation, taxes and large international events can all have significant impacts on property prices in any location.
This was evident in the wake of the Global Financial Crisis when property prices across Australia were negatively impacted. It is also important to consider that markets can vary within states and investing in different cities or towns can provide diversification. For example the resources boom in Queensland has seen many mining towns outperform Brisbane’s residential property market in recent years, so looking further afield in your own state could be worth considering.