Buying Properties Within or Outside My Area

November 7th, 2023

When building your portfolio, a common dilemma is whether to buy locally or expand your search more broadly. At Empire 8 Property, we frequently assist investors weighing options within vs. outside their area. In this guide, we’ll analyze the pros and cons to help determine the optimal investing location mix.

Benefits of Staying Local

For many new investors, staying local feels more comfortable and practical. Reasons to consider nearby areas include:

  • Familiarity with the market, rents, and demand drivers
  • Ease of inspecting properties personally
  • Lower travel time for property management
  • Potential sentimental attachment

Proximity can provide greater peace of mind, especially when starting out.

Diversification Opportunities Further Afield

However, investing exclusively nearby also has drawbacks. Buying interstate or in other metro suburbs provides advantages like:

  • Mitigating risk concentration in one market
  • Accessing varied property types or yields
  • Finding value opportunities away from local hot spots
  • Benefiting from infrastructure or economic shifts

Spreading your assets around harnesses broader market forces.

Striking the Right Balance

Rather than an all-or-nothing choice, the best solution is often a balanced approach. Blend local assets you can easily manage with a selection of outlying properties offering diversification or value.

The mix depends on your risk appetite, portfolio size, and growth objectives. Aim for sufficient geographic distribution while remaining pragmatic.

We Can Help Assess Your Options

Determining your optimal investing geography mix requires expert insights. The team at Empire 8 Property helps objectively analyze your needs to strike the right balance. To explore local vs. out-of-area opportunities, contact us at 0433 213 993 or click here to request a consultation. Let’s tailor your portfolio strategy.