I myself, capital city wise, am a Sydney based investor. However I have not bought in Sydney since 2016 as the market was too hot and the yields were no longer sufficient here to remain aligned with my purchasing criteria and what I could afford. It has since cooled off quite a lot and whilst certain strategies would now work again in this market Sydney is more a longer term investors view than those looking for shorter term capital growth plays.
This drew me to other markets with much more substantial cashflow and capital growth opportunities. Markets such as Queensland, South Australia and Tasmania were high on my list of places to invest and the rewards have paid off thus far and hopefully more to come from diversifying away from the Sydney market.
If you are worried about someone not looking after your property don’t let that get inside your head. You should be using a professional whether its local or interstate as the right property manager should be saving you money, time and not charging you through the roof either. The right contacts here are essential.
Another Big Consideration – Land Tax
Something else a lot of people don’t consider until they get hit with this bill, is land tax.
This can be a huge burden and can absolutely smash you if you aren’t expecting it. Some states are heavier with this tax than others but the simple fact is if you are purely buying in one state you will hit that threshold soon and your Land Tax bill will start to accumulate quickly.
Fun fact – QLD is the only state that offers land tax exemptons within trusts so each time you use a trust your land tax begins at zero and doesn’t start until a few properties in on average (cost dependant obviously).
If you are after any further info on opportunites outside where you currenty live feel free to reach out and we can have a chat.
Get amongst it.