Looking beyond your local market, including interstate, can open up new opportunities when the timing is right. Often referred to as “borderless investing”, this approach allows you to tap into growth in different regions.
However, investing in a different state comes with its own considerations. Understanding how it works, where the opportunities may be, and what to watch out for can help you make more informed decisions.
Here are three reasons borrowers are interested in interstate investing.
One way some investors attempt to manage risk with their investments is to diversify. By spreading your investments across different locations, you’re not relying on just one market. If one area slows down, another might still be performing well. It may be a helpful way to balance your portfolio over time, reduce the impact of local downturns, and tap into a wider range of growth opportunities.
That said, diversification doesn’t remove risk entirely. Property markets can shift due to factors like economic conditions, housing supply and demand, and changes in interest rates.
Investing interstate can give you access to markets that may be more affordable or experiencing stronger growth at different points in the cycle. Because conditions can vary across states, looking beyond your local area may help uncover opportunities you might not find closer to home.
For example, some markets have recently outperformed others. Perth, Brisbane and Adelaide have seen solid growth over a recent rolling quarter, with housing values rising 6.8%, 4.8% and 4.3% respectively, while Sydney and Melbourne recorded slight declines of -0.1% and -0.4%.
This highlights how opportunities may emerge within different parts of the country at different times. That said, markets can shift, and past performance isn’t always an indicator of what’s ahead.
Another reason some property investors consider buying interstate is the potential difference in land tax thresholds and rates across states or territories.
Land tax is an annual levy based on the value of your investment property (excluding your principal place of residence). This tax is managed independently by each state or territory (not applicable in the Northern Territory).
Keep in mind that Australian stamp duty rates and thresholds may also differ by state or territory.
Land tax laws are complex and change frequently. As tax outcomes depend on individual circumstances, it may be worth speaking with a qualified tax professional before making decisions based on tax considerations.
Before investing interstate, it’s important to take a step back and assess both the potential upsides and the risks involved.
With that in mind, here are some key considerations before getting started.
Before buying interstate, it’s important to do your homework. This means understanding the broader market, the city or town, and the specific suburb.
What are the rental yields and vacancy rates like?
How is capital growth tracking? What infrastructure is planned? What is the expected population growth, and how might it affect housing supply and demand?
Having access to this kind of insight can help you make more informed investment decisions, rather than relying on market sentiment or short-term trends. If you’d like a clearer picture of where opportunities may lie, get in touch for a personalised property report.
Before buying interstate, it’s important to consider your overall goals.
It may also be worth thinking about whether the property is likely to be negatively geared, where losses may be offset against your income. Or perhaps your property is positively geared, where rental income exceeds expenses.
Taking the time to define your strategy upfront can help guide your decisions, keep your investment on track, and ensure the property you choose aligns with your long-term goals.
If you’re buying interstate, you’ll need a team of professionals on your side.
A reputable buyer’s agent can offer local market insight, help identify suitable properties, and negotiate or bid on your behalf. You may also need a conveyancer or solicitor to help with the legal transfers, as well as a building and pest inspector to assess the property’s condition.
Lastly, it may also help to speak with an experienced finance broker when considering your borrowing options.
Navigating interstate investing and finding a loan that suits you can feel complex, but having the right support can make a difference. A broker can help you understand your options, compare lenders, and explore loan structures that may align with your goals.
We work with a wide range of lenders and can help you get a clearer picture of what may be available based on your individual circumstances. If you’d like to explore your options, feel free to reach out – we’re here to chat and help you figure out what might work for you.
Disclaimer: The information provided is general in nature and does not constitute financial, tax or credit advice. It does not take into account your personal objectives, financial situation or needs. You should consider seeking independent professional advice before making any investment decisions.
The cash rate came down three times and property prices soared in many markets, driven by lower rates, tight housing supply and government incentives. Meanwhile, rents continued to climb across much of the country.
So, following February’s cash rate increase, what might investors expect next? Below we explore key investment property trends likely to shape the market in 2026.
National home values are projected to continue to rise, but growth is unlikely to be evenly spread.
Insights from Cotality’s Decoding 2026 report show that 87% of real estate agents and financial professionals across the property and finance sectors expect dwelling values to rise over the year ahead, while only 3.5% anticipate prices to fall.
Queensland, Western Australia and South Australia are considered the most bullish markets, with strong price performance supported by high population growth and limited supply.
Looking ahead, Perth, Adelaide and Brisbane are expected to outperform Sydney and Melbourne, where price momentum softened towards the end of 2025.
Properties that can accommodate multi-generational living are expected to be in high demand throughout 2026.
As both housing prices and rents rise, more families are choosing to live together, making dual-occupancy homes particularly attractive to investors. This includes properties such as a main residence with a granny flat, duplexes, side-by-side townhouses, or homes with a detached studio or cottage that functions as a second dwelling.
These types of properties can offer investment benefits, including higher rental income, greater flexibility and reduced risk.
Investors seeking value outside the capital cities may have regional areas on their radar in 2026. Regional markets often offer lower entry costs than capital cities, high rental yields, and the opportunity for investors to diversify their portfolios across geographic locations.
In terms of price growth, regional areas have remained comparatively strong, yet they’re still feeling some pressure. Flexible working arrangements and lifestyle migration has meant more people are thinking of moving to regional areas, increasing demand for housing.
In 2025, regional dwelling values rose 9.7%, compared to 8.2% across the combined capital cities. Western Australia stood out, with a 16.1% annual increase, followed by regional Queensland, which saw values rise 12.6%. Regional Victoria had the lowest growth, up 6% in 2025.
Energy efficiency and climate resilience are becoming increasingly important considerations for investors.
Properties with features such as solar panels, battery storage, electric vehicle charging, quality insulation and smart energy management systems are expected to be more appealing to tenants in 2026, which in turn can enhance long-term investment appeal.
Rentvesting is expected to gain further momentum in 2026, particularly among younger buyers navigating affordability challenges.
Rentvesting involves renting in a location that suits your lifestyle, while purchasing an investment property in a more affordable area with the potential for solid rental returns.
This approach can suit buyers who value flexibility and lifestyle, are priced out of their preferred suburb, but still want to build wealth through property ownership.
With the right knowledge and support, property investors can navigate 2026’s property market with confidence and take advantage of emerging opportunities.
If you’re considering purchasing an investment property this year, get in touch. We can help you understand your borrowing capacity, compare lender options and structure your finance to support your long-term investment goals.
Property investment looks different for everyone, with no single approach suiting every situation. As market conditions, lending rules and affordability, continue to change, planning and preparation are becoming an increasingly important part of the conversation for investors.
With a new year underway, many property investors are reviewing their goals and plans for the months ahead. Whether you already own an investment property or you are planning your first purchase in 2026, these are five key points many investors are keeping in mind.
Before diving into property listings, it can be helpful to be clear on what you want the investment to achieve. Some investors prioritise long-term capital growth, others focus on rental income, and many aim for a balance of both.
Your goals will often be shaped by your broader financial position, your risk comfort level and how long you plan to hold the property. These factors can influence the type of property you consider and the strategy that may suit you.
Commonly discussed strategies include buy-and-hold, negative or positive gearing, purchasing new or off-the-plan properties, or renovating to add value. Each option has potential benefits and risks, so it’s important to do your research and get professional advice about which may suit your circumstances.
Where you buy can have an influence how your investment performs over time. Many investors look beyond their own suburb or city and explore opportunities across different markets.
This might include capital cities, regional centres or even interstate options as part of a diversification approach. Regional areas have attracted attention in recent years due to affordability advantages and local economic factors.
Understanding factors such as employment opportunities, infrastructure spending, population growth and rental demand can help you make more informed decisions about location.
Affordability remains a major consideration for investors heading into 2026, which has led many people to think more creatively about how they enter the market.
One approach often discussed is rentvesting. This involves renting in an area that suits your lifestyle, while purchasing an investment property in a more affordable or higher-growth location. For some people, this may offer a way to build a property portfolio without stretching themselves financially to buy where they live.
Exploring different entry approaches can help you consider whether your investment plans fit comfortably with your finances and lifestyle.
Trying to time the market perfectly can be challenging, even for experienced investors. Instead, many investors focus on being financially prepared, so they are able to respond when opportunities arise.
This usually means understanding your borrowing capacity, setting a realistic budget, and allowing for buffers such as interest rate changes, vacancies or unexpected expenses. For some buyers, securing finance pre-approval provides clarity and confidence before starting their property search.
Being organised and finance-ready can make the process smoother when decisions need to be made.
Property investment involves more than just choosing a property. There are lending, tax, legal and ongoing management considerations to navigate along the way.
Many investors choose to work with professionals such as mortgage brokers, accountants, financial advisers, real estate agents, conveyancers and property managers. Each can play a role in helping you understand your options and navigate decisions along the way.
Having the right team around you can provide reassurance and help you move forward with more confidence.
Whether you are planning your first investment or reviewing an existing portfolio, understanding your finance options is a crucial step.
If you would like to discuss your borrowing capacity, equity position or pre-approval options, get in touch today. We are here to provide clear, straightforward guidance and help you move forward with confidence as you plan your property journey for 2026.
Whether you’re after a sea change, a tree change, or simply a place to unwind, investing in a holiday home can be an attractive way to diversify your property portfolio and create a retreat to escape to.
But before you turn this dream into a reality, here are a few reality checks you may need to consider before you dive in.
Start by thinking about how often you’ll use the property and when. Your plans for personal use versus renting it out will have a big impact on your finances and potential returns.
Keep in mind that peak tourism periods, like summer for waterfront properties, often bring in the highest rental returns, which might mean forfeiting plans to stay there during those times.
Also, do your research to understand whether other holiday homes tend to rent out seasonally or year-round, as this will affect your income and budgeting.
As with any property purchase, it’s imperative you do your homework before purchasing a holiday home.
What’s the supply versus the demand like for holiday rentals?
Get to know the local tourism scene and holiday rental market. Will you have to rely on seasonal crowds, and if so, how will you cover costs during quieter times?
Check for capital growth indicators in the local area. It’s a good idea to choose locations that provide access to amenities such as shops, cafes and public transport. Check whether there are any infrastructure upgrades in the pipeline, as this could impact the property’s capital growth potential.
You’ll want to get your head around the local requirements for short-term rental accommodation. Regulations vary around the country.
Some areas may have restrictions on short-term holiday letting, or you may need to register the property to operate a short-term rental.
There may also be limits on how long you can live in the holiday home, as well as minimum standards of behaviour and requirements. Local councils may have laws (such as fire safety, noise control, parking or overcrowding) that could affect your holiday home.
There could also be other things like levies to consider. In Victoria, for example, a short-stay levy of 7.5% applies for bookings of less than 28 consecutive days.
Bottom line: do your research and understand your obligations.
You’ll need to be able to cover the ongoing costs of owning a holiday home. Examples include:
It’s important to be aware of the tax implications of owning a holiday home and to chat through these with your accountant or financial planner.
Examples of financial implications to consider:
If you’re ready to take the next step towards owning your dream holiday home, we’re here to help.
Get in touch today to start the conversation about bringing your holiday home dream to life.
So, what’s driving this refinancing surge – and could it be worth considering for you too?
For many borrowers, the primary motivator to refinance is the potential to secure a lower interest rate with another lender.
With three cash rate cuts totalling 0.75% so far this year, there is fierce competition among home loan providers to lock in borrowers. Many lenders have reduced interest rates in the hope of getting more borrowers through the door, while holding onto existing ones.
Some borrowers are also choosing to refinance into shorter loan terms. If your income has grown or you’re in a position to pay off your loan sooner, this can reduce the overall interest paid across the life of the loan.
Many borrowers choose to refinance in order to access the equity in their property. Equity is the difference between what you owe your lender and the current market value of your property.
With national home values on the rise for eight consecutive months and Australian house prices at a record national average, you may have more equity built up than you realise.
Refinancing allows you to tap into that equity, which can then be used for renovations, an investment property, or even helping your kids with education costs.
Some borrowers refinance to access loan features such as offset accounts or redraw facilities, which can help reduce interest while giving you flexibility with your repayments.
Others switch between fixed and variable rates, depending on what suits their situation. With recent rate cuts, some banks have lowered fixed rates, making them attractive to borrowers who want certainty over repayments.
For those with multiple different types of debt, such as a car loan, personal loan, home loan and credit card debt, refinancing to consolidate debt may be worthwhile.
Rolling all your debts into a loan with a lower interest rate and one repayment can be beneficial, but there are risks involved. It’s important to speak to a finance professional and weigh up your options before deciding whether debt consolidation is right for you.
Experts expect refinancing activity to remain strong this year. If you’ve been with the same lender for a while, or if it’s been a few years since you reviewed your home loan, now could be the right time to see what’s available. Talk to us today and we’ll compare the market for you, step you through what potential options are available.
Buying an investment property in another state or territory can open the door to a range of new opportunities. From more affordable price points to higher rental yields and market diversification, there are plenty of reasons to look beyond your own backyard. But investing interstate also requires careful planning, local insight, and the right financial support.
Here are 7 practical tips to consider if you’re thinking about taking that next step.
Before exploring property listings, it’s helpful to think about what you want to achieve – whether that’s long-term value growth, consistent rental income, or managing cash flow. These goals can guide your decisions around location, property type, and loan structure.
If you’re unsure where to begin, I can provide general information about available finance options and suggest ways you might continue your research or seek licensed advice.
Many investors use equity in their current home or investment property to fund their next purchase. Depending on your situation, you may be able to borrow up to 80% of your property’s value, minus any outstanding loan balance.
It’s also important to budget for all the costs involved in buying interstate. These may include stamp duty, legal and conveyancing fees, building and pest inspections, insurance, property management, maintenance, and ongoing loan repayments. Some of these expenses vary significantly between states, so be sure to get detailed advice early.
Getting pre-approval is a valuable step in the process. It gives you a clear idea of your borrowing power, helps you set a realistic budget, and shows sellers you’re serious when it’s time to make an offer.
Not all investment loans are the same. Depending on your goals and personal circumstances, you might consider features such as interest-only repayments, offset accounts, or redraw facilities. The right loan structure can help you manage cash flow, reduce interest, and stay flexible over time.
As a mortgage broker, I can walk you through your options, compare lenders, and help tailor a finance solution that fits your strategy.
An affordable property doesn’t always mean a good investment. When buying interstate, take the time to research the local market. Look at vacancy rates, population growth, infrastructure projects, access to public transport, schools, and employment hubs.
Focus on areas with consistent demand and strong long-term potential. Read suburb reports, follow property trends, and review local council plans for future development.
If you’re unfamiliar with the area, working with a buyer’s agent can be helpful. They can provide local knowledge, assist with negotiations, and may even uncover off-market opportunities.
Managing a property from another state requires trust in your support network. A good property manager will handle tenant communication, organise maintenance, conduct inspections, and ensure your property complies with local regulations.
You’ll also need a local conveyancer or solicitor who understands the legal requirements of that state or territory. And don’t forget about building and pest inspections – they’re essential when you can’t view the property yourself.
Every state and territory has its own rules and processes for buying property. Cooling-off periods, contract terms, settlement timeframes, and auction regulations can all differ. Make sure you’re familiar with how things work in the area you’re buying in, so there are no surprises.
If you’re not able to travel for inspections, consider using virtual tours or requesting detailed video walkthroughs. Independent building and pest reports are also a must.
Once your property is up and running, make it a habit to review its performance regularly. Monitor your rental income, track expenses, and stay informed about local market conditions. If your property grows in value or rental demand increases, it may open the door to further investment down the line.
Think about how long you plan to keep the property and what might prompt you to sell. Before you buy, have a chat with your accountant or tax adviser about the exit strategies that could work for your situation.
If you’d like help understanding your borrowing power, getting pre-approval, or structuring your finance to support an investment purchase, feel free to get in touch. We can walk you through the process and help you feel confident every step of the way.
If you’ve paid down your home loan somewhat or your property has appreciated in value, you may be able to use your home’s equity to fund an investment property purchase
Knowing how to use your home equity can help you achieve financial goals, but it’s important to weigh the risks, like increased debt and changing interest rates.
Let’s look at what equity is, why use your equity to buy an investment property, and how to do so.
Equity is the difference between the market value of your property and the balance remaining on your home loan.
Say your property is worth $1,000,000 and you owe the lender $200,000. Your total equity is $800,000.
However, not all of that equity is accessible. This is where usable equity comes in. Banks will typically lend you 80% of the value of your home, minus your existing loan balance.
In this example:
In some instances, you may be able to borrow more if you take out Lenders’ Mortgage Insurance (LMI).
Using the equity in your home to purchase an investment property can be a powerful strategy, but it’s important to weigh both the benefits and potential risks. That’s why it’s essential to seek professional advice – whether financial, legal, or tax-related – to ensure this approach aligns with your goals and circumstances.
Let’s take a closer look at some of the key advantages and potential drawbacks of using your equity to invest.
Refinancing to unlock your equity is a popular option. This involves taking out a new loan to pay off your old mortgage, with some money left over – that is, your equity. You can then use that money as a deposit, and take out a new loan for the investment property.
A common way to borrow against the equity in your home is to get a home loan top up or increase. This involves increasing your current mortgage limit to allow you to access the funds (which can then be used for a deposit for the investment property).
Cross-collateralisation involves using your home as collateral and adding it to the new investment property loan, to help get the purchase over the line. In this scenario, you’d end up with 2 loans – the original mortgage secured by your home, and the new mortgage secured by your home and the investment property.
Another option is to set up a line of credit and use the money as a deposit for your investment property. With this scenario, your lender would approve you for a specific amount, based on your usable credit. The benefit of a line of credit is that you only pay interest on the amount that you borrow, rather than the entire limit.
There may be other finance options to help you use your equity to buy an investment property (such as a supplementary loan or home equity loan).
To get started, give us a call today to talk through how you can unlock your equity – we’re here to help!
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info@mylendingspecialist.com.au
