Top 10 Tips for Building Interstate
1st July 2024
Finance & Budgeting Pre-Construction
This article covers 10 essential tips for building interstate, from market research to legal and financial considerations, helping homebuyers and investors avoid costly mistakes.
Top 10 Tips for Building Interstate
Building a new home interstate can be an exciting and profitable venture, but it comes with its own set of challenges. Whether you're an investor looking for opportunities outside your state or a homebuyer relocating, following a clear strategy can save you from costly mistakes. In this episode of the Home Building Hub podcast, hosts Colin Bischof and Darren Brennan break down the top 10 tips to help you successfully build interstate.
1. Do Your Research
Before committing to a property, research the local market conditions, including:
- Suburb profiles
- Rental yields and capital growth trends
- Future infrastructure and amenities
Websites like realestate.com.au and local property groups on Facebook can be valuable resources for gathering insights. However, always verify your findings with multiple sources to make an informed decision.
2. Visit the Area
Even though technology allows for virtual property tours, nothing replaces an in-person visit. If possible, take a short trip to:
- Walk around the neighborhood
- Inspect nearby facilities (schools, shopping centers, transport)
- Get a feel for the community and lifestyle
Seeing the area firsthand helps confirm that the location matches your expectations.
3. Check Current and Future Infrastructure
The value of a property is often tied to infrastructure projects. Research:
- Existing transport links (train stations, highways, airports)
- Upcoming schools, shopping centers, and hospitals
- Future city planning and zoning changes
Some developments sound great on paper but may take decades to materialise. Make sure proposed infrastructure is backed by solid planning and timelines.
4. Engage a Local Conveyancer
A conveyancer plays a crucial role in reviewing your land and building contracts. However, laws vary between states, and your usual conveyancer may not be familiar with interstate regulations. Hiring a local expert ensures:
- Compliance with state-specific laws
- Proper handling of land titles and settlements
- Awareness of any unique zoning or planning restrictions
5. Research the Builder
Not all builders operate with the same standards. Before signing a contract:
- Visit display homes to assess build quality
- Drive past ongoing projects to see real-life construction progress
- Check reviews and customer feedback (but take extreme opinions with a grain of salt)
A reputable builder with a strong track record will make the process much smoother.
6. Hire a Local Building Inspector
Since you may not be able to attend every walkthrough, engaging a local building inspector ensures:
- Quality assurance throughout construction
- Early identification of any defects
- Peace of mind that everything meets compliance standards
Building inspection reports can sometimes seem alarming, but focus on critical issues rather than minor cosmetic concerns.
7. Find a Good Rental Agent (For Investors)
If you’re building an investment property, a reliable rental agent will help secure tenants and manage the property effectively. When selecting an agent:
- Check their experience managing similar properties
- Review their fee structure
- Read client testimonials
A proactive agent will ensure a steady rental income with minimal stress.
8. Understand Legal and Tax Implications
Each state has different rules regarding:
- Stamp duty
- Land tax
- Property investment regulations
Consult a legal or financial professional to ensure you’re aware of all costs and obligations before purchasing interstate.
9. Be Cautious of ‘Boom’ Areas
Rapidly growing areas may seem attractive, but extreme price hikes can be followed by sudden drops. Be wary of:
- Mining towns – Booms driven by short-term industries can collapse when the industry slows down.
- Overhyped suburbs – Some locations experience speculative growth that isn’t sustainable long-term.
Stick to areas with consistent, steady growth rather than chasing fast-rising trends.
10. Work with a Finance Broker Familiar with the Area
Lending requirements and property valuations can vary across states. Using a finance broker with local knowledge will help you:
- Secure loans suited to the region’s lending criteria
- Avoid valuation shortfalls that can impact your borrowing power
- Understand the full financial obligations of your purchase
Key Takeaways
- Thorough research is critical before purchasing interstate.
- Visit the area if possible to understand its true potential.
- Engage local professionals, including conveyancers, builders, and inspectors, to navigate legal and construction requirements.
- Beware of overhyped markets that may not sustain long-term growth.
- Ensure your finance broker understands the region to avoid valuation surprises.
Frequently Asked Questions (FAQs)
Q: Can I manage an interstate build remotely? A: Yes, but hiring a local team (conveyancer, inspector, rental agent) will make the process smoother.
Q: How do I verify a builder’s reputation? A: Visit display homes, check online reviews, and drive past active construction sites.
Q: What’s the biggest mistake people make when building interstate? A: Not researching infrastructure plans and legal costs before purchasing.
Glossary of Terms
- Capital Growth – Increase in property value over time.
- Conveyancer – A legal expert who handles property transactions.
- Stamp Duty – A tax paid on property purchases, varying by state.
- Rental Yield – The percentage return on a property’s rental income compared to its value.
Listen to the Full Episode
For a deeper dive into these tips, listen to the full Home Building Hub podcast episode: 🎧 Top 10 Tips for Building Interstate
About the Home Building Hub Podcast
The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process—completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips.
Explore more episodes at www.homebuildinghub.com.au and join our growing community of informed home buyers.
Disclaimer
Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.