Investing in interstate is something only a few people do, mainly because only a limited number of people know about this. Of course, handing over your hard-earned money to invest in something you do not understand fully is understandable and intelligent. However, should you stay ignorant of what can help you make your hard-earned money grow? Is not that the dream - make money and earn even more?

However, conducting research only on your own may be crucial and time-consuming, especially if you are a newbie investor. There is also the chance that the property you chose to invest your money in will not perform well. It is especially true for interstate properties - having one means that you will not be able to visit it or drive by it any time you want. It can indeed create a fear of the "unknown," which may immediately prevent you from taking any action at all. 

The One Mistake You Are Making

Probably one crucial mistake that you can make is investing only within your backyard. It means that you are staying in your comfort zone and are passing by excellent opportunities to make your money and assets grow. Some areas and properties may be accessible to you, but you consciously choose to miss out on it simply because you are afraid of taking the step and diving into the "unknown." Some may act without prior experience or sufficient knowledge to support them, which results in investing in the wrong types of properties or the bad areas. 

Here are some of the common mistakes that investors make when buying interstate:

1.buying off the plan

Buying off the plan refers to buying a property that is not built yet or is still under construction. Your buying decision is based only on the property plans and designs rather than the finished product itself. 

Typically, you must pay a deposit and settle the remaining balance on instalments as the construction of the property is ongoing. In the end, you will be given the keys to your new property.

It is one common mistake because there are too many properties like this coming into the market, and too much of something means that there is no "scarcity value" and that there is no supply pressure to underpin the price growth. If investors already dominate the market, then you will have no advantage when it is time for you to rent the property out. 

2. Buying in outer suburban areas

The next is buying in outer suburban areas. It may seem like an excellent investment, but you must think twice before letting go of your hard-earned money. These exterior suburban areas usually have a history of underperforming, and they will likely continue to underperform shortly. Remember to be mindful of the essentials and the fundamentals that help drive a property's price growth. 

3. Buying sight unseen

Another mistake an interstate investor makes is buying sight unseen. It means that an investor purchases a property without having toured it or seen it in person. Remember that most property sellers will only highlight and showcase the best features of their properties online. 

Aside from that, you may also accidentally purchase a property located behind a large sewage facility without you even knowing. There may be dangling powerlines in the street across yours, or the location of the property itself may not be ideal for you and your plans. It is why, when buying a property, do your best to scout the location yourself or send your trusted representative to do the work for you. Do not make the mistake of buying a property without ensuring that this is precisely what you want your property to look like in person.

4. Buying from property marketers

Of course, there are exceptions for every rule, and we are not saying that property marketers are "scammers." However, many operators add a significant amount of premium to a property's original selling price to account for the marketer's commission. 

Seek only the help of trusted property marketers and those who have established themselves in the industry. Do your research, and do not be afraid to ask questions. After all, your money is the one that is on the line. 

5. Buying under advice from out-of-town advisors

Last but not least is buying under the advice of advisors who are from out of town. They are the ones who fly in during the weekends and fly out to other locations on other days. These people do not have the proper perspective and the necessary experience to understand what makes a property well and what does not. They may not have even experienced the rainy season in a specific city you are eyeing, so how will they know if your property will be in a flood-prone area? 

Indeed, some advisors are from the city you are planning to buy your property in. Make sure to connect with them and ask for their help, especially on massive purchases such as buying a property. 

Conclusion

Buying an interstate property may be financially rewarding if done in the right way. Doing so can also help you grow your financial portfolio significantly. Like with any other investment scheme, you must carefully evaluate whether the opportunities you are presented are aligned with your goals and strategies. 

Do not just jump into a market without sufficient knowledge. Even when that market is generating good reviews online and getting positive headlines, it does not mean that it will be a good investment for you. If needed, do not be afraid to seek help, especially from seasoned property investors who are already familiar with the rules and strategies in the industry - one that can help you make your investment and property grow.