News and Media

Landlords looking to invest interstate

New research has found property investors are expanding their portfolios beyond their home state.

Terri Scheer Insurance, a landlord insurance provider, says 20% of its insured landlords now own rental property outside their own state.

Queensland is their preferred destination, with 51% of interstate investors owning a property there.

This is despite Queensland house and unit prices falling further than every other state last financial year down more than 6%, according to RP Data figures. No other state came close to Queensland for interstate investor popularity, with the next best Victoria at 14% , NSW at 12% and South Australia at 11%.

The ACT and Tasmania have the highest proportion of investors who own property interstate, at 57% and 50% respectively.

Queensland and SA have the lowest proportion, at 9% and 10%.

Terri Scheer Insurance manager Carolyn Majda says Queensland's appeal could be people buying property they can rent now and holiday in or retire to later.

'These figures show that today's property investors are not afraid to think outside the state,' Ms Majda says.

'This suggests that investors are choosing rental properties in areas they believe will give them the best returns, regardless of where they live.

'It's possible that some people are moving interstate for work and lifestyle reasons, but keeping their existing properties to generate rental income or in case they intend to return.'

Source: news.com.au. Landlords looking to invest interstate. 22 August 2011.