One in Five Investors Are Buying Investment Property Interstate

Is the grass greener across the border? For plenty of Australian investors, it just might be.

Investor activity has been running hot recently, with investment loans hitting record highs. At the same time, rising home prices have pushed many buyers to look beyond their local market. That is why more Australians are considering investing in interstate property rather than staying close to home.

The appeal is not hard to understand.

Australian property has given investors a lot to smile about lately. Vacancy rates remain low in many areas, rents have been climbing, and strong price growth has meant more than 93% of recent investor sales made a profit. That is the highest level seen in a decade.

Unsurprisingly, this trend has encouraged more investors to jump into the market and buy rental properties. In turn, new investment loans have surged to record levels.

But here is the intriguing part.

According to PropTrack’s latest Investor Report, as many as one in five investors across Australia are now purchasing outside their home state. In some parts of the country, including the ACT, Tasmania, and the Top End, 40% or more of investors are buying interstate.

So, is it a smart move? Often, yes. But there are a few things worth weighing up first.

Why interstate investing gives investors more choice

One of the biggest benefits of buying as an investor is flexibility.

Unlike a home you plan to live in, an investment property does not need to be close to your work, family, or social life. That opens up far more options. You can focus less on convenience and more on the numbers.

This is one reason interstate property investment can make sense. It can expose you to a different market, so you don't rely on one city or region. That added diversity may help spread risk across your portfolio.

Of course, location still matters. You still want a market with strong capital growth potential, solid rental returns, and consistent tenant demand. Sometimes your local area will offer all three. Occasionally, it will not.

And that brings us to another major reason investors head across state lines.

Affordability can make interstate property more attractive

Property values vary significantly around Australia, and that can heavily influence where investors choose to buy.

Take Sydney as an example. With a median home price above $1.295 million, many investors may find it difficult to buy a rental property locally. Yet that same budget could potentially stretch further in markets such as Hobart at $737,742, Melbourne at $828,249, or Adelaide at $937,021. A regional purchase may also be within reach, with the national and regional median sitting at $758,788.

That difference matters.

For many Australians, buying investment property interstate is not about chasing a trend. It is about finding an entry point they can actually afford. In some cases, that lower buy-in price may also leave room for healthy rental returns.

What to watch out for before investing in interstate property

While interstate property investment can be a straightforward process, it does come with a few extra challenges.

The first is local knowledge. If you are purchasing in another state, you may not know the neighbourhoods, tenant profiles, growth pockets, or potential red flags the way a local would. That makes research essential.

The second challenge is practical. It is a lot harder to inspect homes when they are not just down the road. You cannot always duck out for a quick Saturday inspection and be back by lunch.

This is where a buyer’s agent can be useful. A buyer’s agent is a licensed professional who knows the local market, can help identify properties that suit your goals and budget, and may also assist with negotiations.

That support is not free, of course. A buyer’s agent may charge a flat fee or a percentage of the purchase price. It is an added upfront cost. However, when venturing into an unfamiliar market, this expense could prove to be worthwhile.

There is also property management to think about. If you own a rental in another state, you will likely need a property manager to handle the day-to-day running of the property. That means another ongoing cost, so be sure to factor it into your numbers before committing to any interstate investment strategy.

How investment loans work for an interstate purchase

The positive news is that you do not need to use a lender based in the state where you are buying.

When buying investment property interstate, you can still apply for a suitable investment loan through lenders from anywhere in Australia. What matters most is finding a loan that fits your circumstances, borrowing capacity, and long-term plans.

The loan process itself is broadly similar to applying for an owner-occupied home loan. But there is one detail worth paying attention to. Some lenders take expected rental income into account when assessing how much you can borrow, while others do not.

That might sound like a small difference, but it can have a real impact on your borrowing power and overall budget.

Talk to Osinski Finance about interstate property investment

If you are thinking about building wealth through property, Osinski Finance can help you make sense of the numbers before you commit. We help clients with home loans, investing in a property, and becoming a first home buyer, with practical guidance that matches real goals and real budgets.

Whether you are exploring your first interstate purchase or planning your next move, speak with us early. We can compare lenders, explain how different banks assess investment applications, and help you understand your borrowing options with clear, practical advice from our loan advisor. Message us to chat about your plans and find the right loan strategy for your next step.

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