Buying Interstate – What you need to know

There’s no place like New South Wales and we certainly get a lot of people wanting to move to the premier state for its great housing and wonderful regions – but what does this mean for interstate buyers?

Unfortunately laws and fees regarding property transactions differ from state to state and this can cause a lot of confusion amongst interstate buyers.

Here are some tips to help you when choosing a property from a different state to the one you’re buying in:

Always inspect! – It may be hard to inspect a property when you’re located on the other side of the country, but it is never a good idea to buy a property sight unseen. Photos can be helpful in the search process but they won’t be able to capture noise, odours or other non-visual elements of a property.

If you really can’t inspect the property then you may be able to ask a very trustworthy friend to do it for you, or maybe your real estate agent can send you a video walk-through, but even then it is best if you can view the property yourself.

Research, research, research! – Find out as much as you can about the area you’re interested in. Look at past sales data and current news and reviews of the area. Don’t wait until you’ve already bought the property to find out important information about the area.

Here are some things worth looking into:

• Start with the internet to search for news and reports of the area.
• Ask locals and real estate agents their thoughts on the area (you may also like to jump on property forums).
• Anticipate possible changes to the area – ask questions about potential new developments or demographic changes for example.
• Find out about all local and state government rules that apply to properties in the area. Also be mindful of differing stamp duty fees and government concessions in each state.

Seek professional assistance – When you don’t know an area it is crucial that you deal with local professionals who know how the local area works. It’s a good idea to get an independent valuation report carried out by a register valuer and also to make sure your dealing with a conveyancer/lawyer that knows state-based property laws. Some people also like to use state-based lenders as they can sometimes offer more competitive packages for their own states.