The short answer is that if you own (or part own) your home, then you have invested where you live. And what better investment – it is maintained by someone who loves the property, it is appreciating in a tax free environment for you and it keeps the rain off you and your family.

The chances are that your home has appreciated nicely and will continue to do so. It stands to reason that the ‘house next door’ will appreciate too. So, why shouldn’t your investment property be the ‘house next door’?

Well, put simply, your portfolio (even if it is a portfolio of two) should be diversified. That is, as the saying goes ‘spread your eggs amongst different baskets’ or in risk analyst speak - de-risk your portfolio from concentration risk by investing in different markets segments. This includes location, style, price and other distinguishing features of our diverse property market.

The other reason to consider interstate investments is to avoid or minimise land tax. Land Tax is a State based tax that assess properties held by an entity on a State by State basis. To avoid or minimise Land Tax, spread your investments across different States. We can help you to assess if this is relevant to your investment circumstances.

Finally, there is no real compelling argument to override the points raised above. Your investment property will survive without your constant watchful eye and it will appreciate, whether or not you are looking at it.

Investment Property Partner has expertise in building investment property portfolios for our clients. We employ objective research criteria to each portfolio to ensure the net wealth gain forecast for our customers is maximised through considering market segmentation strategies and cost minimisation strategies. If you would like to discuss how to build a property portfolio or to review your property portfolio, then please contact us on 1300 980 487.