By Ruth Lewis – This article first appeared on Macquarie Port News
More than a third of property investors are choosing to buy over 200km from their homes.
A study by MCG Quantity Surveyors has revealed many Aussie-based property buyers are now comfortably investing away from home, with the average distance between investment properties and their owners being almost 300 kilometres.
And the numbers look set to rise – particularly in response to the coronavirus crisis, according to Mike Mortlock, director of MCG Quantity Surveyors.
Mr Mortlock admitted the average distance surprised him but said it’s a sign many investors now happily set aside familiarity and, instead, seek potential.
“There’s been a tradition among Aussie investors to invest where they know and, in general, they know where we live,” Mr Mortlock said.
“The idea of wandering too far from you ‘locality of comfort’ frightened investors in the past, so an average distance of 293 kilometres is substantial.”
Mr Mortlock analysed the details of 1000 clients who’d commissioned depreciation reports in the year to May 2020 and revealed a picture of investor buying habits.
“The numbers showed just 6.9 per cent of Australian-based investors bought within their home suburb.
“I’d suggest this is a dramatic drop from the proportion we’d have seen 10 or 20 years ago.”
Mr Mortlock said while many still preferred local investing, the large percentages investing remotely looked set to rise.
“Of the clients studied 36 per cent bought within 10 kilometres of their PPOR*, but a number of factors at play indicate we’ll see even more investors ‘going remote’ in the future.
“Readily available online information, combined with easy access to independent professionals like buyers’ agents, have made it a cinch to confidently buy in national hotspots regardless of where you reside.
“Investors have never been better educated about the best locations for investment.”
“Regional localities and smaller cities continue to gain appeal – and the ability to work from home will only boost their attraction, particularly in lifestyle hubs,” Mr Mortlock said.