Investing in property interstate can be a great way to diversify your portfolio, take advantage of emerging markets, or find better affordability. However, without the right strategy, many investors make costly mistakes that hurt their long-term success.

A recent CoreLogic report showed that interstate property buyers account for a significant percentage of Australia’s real estate transactions—but not all investments turn out as expected. Without understanding local markets, legal requirements, and the hidden risks of buying in another state, investors can fall into financial traps.

In this guide, we break down five of the most common mistakes made by investors purchasing interstate—and how you can avoid them.

1. Why Off-the-Plan Properties Can Be Risky for Investors

Buying off-the-plan means purchasing a property before it has been built. While this may seem appealing due to potential discounts and government incentives, it comes with serious risks:

Why It’s a Mistake:

• Many off-the-plan properties lack scarcity value, meaning they don’t appreciate as quickly as existing homes.
• Delays in construction can leave investors financially exposed if the market shifts before settlement.
• Rental demand for new developments can be unpredictable, leading to lower returns.

How to Avoid It:

• Research the developer’s track record and the market history of similar projects.
• Compare off-the-plan prices to existing property values to assess long-term growth potential.
• Seek guidance from an independent buyer’s agent who understands the risks in off-the-plan investments.

2. Is That Affordable Suburb a Smart Investment? Think Again

It’s tempting to buy in outer suburban areas because they appear affordable. But price alone doesn’t make a property a good investment.

Why It’s a Mistake:

• Low demand and slower growth in outer suburbs mean properties may take years to appreciate.
• Poor infrastructure and amenities can limit rental appeal.
• Longer commute times may impact tenant demand.

How to Avoid It:

• Prioritise market fundamentals such as employment opportunities, infrastructure projects, and population growth.
• Check historical price growth trends—a bargain today doesn’t mean future value.
• Work with a buyer’s agent who specialises in investment-grade locations rather than just affordability.

3. The Risks of Buying Sight Unseen

With technology making remote property purchases easier, many investors buy without physically inspecting the property—a big mistake.

Why It’s a Mistake:

• Online photos and virtual tours don’t always reveal structural issues or location drawbacks.
• Properties may be in undesirable streets, flood zones, or high-crime areas.
• Legal and zoning issues might be hidden without a thorough check.

How to Avoid It:

• If you can’t inspect the property yourself, hire an independent buyer’s agent to assess it for you.
• Request a detailed building and pest inspection before committing.
• Visit the area using Google Street View and local council resources to check for any red flags.

4. The Hidden Costs of Relying on Property Marketers

Some investors get caught up in sales pitches from property marketers who promote “investment opportunities” that may not be in their best interest.

Why It’s a Mistake:

• Many marketers inflate prices by adding commissions to the property cost.
• These properties are often pre-selected for high commissions rather than investment potential.
• The focus is on selling rather than ensuring the property fits the investor’s strategy.

How to Avoid It:

• Seek independent advice rather than relying on marketing companies.
• Always compare the price to similar properties in the area to ensure it’s fair.
• Work with a buyer’s agent who acts in your best interests—not a marketer selling stock.

5. The Biggest Mistake Investors Make: Ignoring Market Research

Each state has unique property trends, regulations, and risks. Buying interstate without researching the market can be an expensive mistake.

Why It’s a Mistake:

• Rental demand, capital growth potential, and economic conditions vary across states.
• Legal and tax differences can affect your investment return.
• Relying on outdated or biased sources leads to bad decisions.

How to Avoid It:

• Use government and independent data sources to study local property trends.
• Work with a local buyer’s agent who understands regional market conditions and investment opportunities.
• Look beyond short-term growth and assess long-term demand drivers like employment, infrastructure, and population trends.

How BuyerAgentFinder Can Help You Buy Interstate with Confidence

Buying property in another state can be a smart investment move—but only if you do it right.

• BuyerAgentFinder connects you with experienced buyer’s agents across Australia who can:
• Identify high-growth locations suited to your goals.
• Assess properties in person to ensure they meet your standards.
• Negotiate on your behalf to secure the best deal.
• Help you navigate state-specific laws and tax implications.

Thinking of buying interstate? Find a trusted buyer’s agent today:

https://buyeragentfinder.com.au/

Conclusion

Interstate property investment offers great opportunities, but without the right knowledge, it can also lead to costly mistakes.

By avoiding these five mistakes—buying off the plan, choosing the wrong suburb, skipping inspections, relying on marketers, and failing to research the market—you can invest with confidence and improve your long-term success.

What’s been your biggest challenge when investing interstate? Let’s discuss in the comments!

Want expert guidance? Find the right buyer’s agent today:

https://buyeragentfinder.com.au/