As investors look for the next opportunity to make money out of the property market, many are turning their attention to Queensland.
Whether you’re local or not, Queensland offers much appeal. Interstate buying has become more popular, especially for those priced out of the market down south, as it is a strategy that allows you to consider more affordable properties that could have significant growth potential and high returns.
Many interstate investors are looking at buying in Queensland because of its affordability and the abundance of supply.
However, there are some important things to consider before buying in this state:
1. The Contract of Sale protects the purchaser
In Queensland, the Contract of Sale generally includes the right to a cooling off period, unless otherwise stated. It is a statutory instrument that is much shorter and affords the purchaser a greater sense of protection – meaning many buyers are led to feel okay with the idea of signing before taking it to a solicitor. This is fine as long as you have read through and are satisfied with all part of the Contract prior to signing. However, if you’re a first time buyer and prefer someone to explain the process of signing a Contract before you sign: contact us for an obligation-free quote.
2. The common cooling-off period is five days
This applies to private sale transactions involving residential property only. The cooling-off period starts the day the buyer or the representative agent obtains a copy of the Contract of Sale as signed by both the buyer and the vendor. Auction sales, however, do not have a cooling-off period.
3. Subject to finance, pest and building inspections are not standard conditions
These conditions are very common and are a part of the standard conditions if you know how to fill in the right sections of the Contract to activate these clauses.. It is recommended that potential buyers conduct inspections of properties themselves to be sure that they’re getting what they signed up for, or at the very least, invest in a trusted advisor or representative to review the property on your behalf.
4. Be mindful of stamp duty and land tax differences
It’s an important factor for interstate buyers to keep in mind: duties and taxes vary across states. Many investors enjoy the opportunity to spread risk and avoid land tax by buying interstate, but you should always study up on what needs paying and what exemptions you can claim, if any.
5. Supply conditions could affect expected profit
Interstate buyers are particularly drawn to Queensland at moment, as markets are considerably more affordable that Sydney and Melbourne. However, particularly in the inner city of Brisbane, where there are record levels of units being released into the market, oversupply concerns could bring rent rates and returns down. You have to weigh up these risks when reviewing your potential investment, with plenty of research and due diligence.
Interstate buying in Queensland can prove to be a boost to your portfolio, as long as you cover all your bases and do your research. Once you’ve found the right property, the next step is to enter the conveyancing process. We aim to make the process of buying property as seamless and stress-free as possible, whether for investment purposes or when buying your own home! For more information on how we can help you (or for an obligation-free quote), contact our friendly team on 1300 932 738 or online here.