Don’t Buy Local Unless You’re a Stalker
One of the regular challenges I have with clients is convincing them to not buy their investment properties locally. Once I can convince them that they can invest anywhere in the country, as long as it is poised for growth, it opens the doors to far better investment options.
But for some reason, most people seem to think that they need to be within driving distance of every property in their portfolio. There are only four reasons you might want a property that is close by:
- Your local area is booming
- You plan to DIY your property management (NOT advisable)
- You’re a stalker
- You don’t actually care about making money through property
On the flip side, here are some reasons why you shouldn’t invest in local properties:
- Your local property market is moving slower than another market in the country
- You want to avoid the temptation to waste time DIYing property management and maintenance
- You have a rental manager and building inspector who you trust to look after your property for you
- You really want to maximise your growth from your properties
Buying an Investment Property is Not Like Buying Your Home
If you’re new to property investing, it can easy to get this confused. When you’re looking for your own home to live in, you obviously will be close by! You need to be able to see it, make sure it’s a good fit for your family, and know the local area really well before you choose to buy.
But I hear property investors talk about potential investments in the same way, saying “Well, I wouldn’t live in that. So, if I wouldn’t live in it, no one else will.”
It means they’ve become side-tracked from the real goal here, which is to make money. You need to detach emotionally from the properties you are investing in. Accept that what matters most is choosing something that is going to be in a profitable location, low-risk, and appealing to the majority of renters in the location you invest in. You don’t need to be local to your investment property to tick those boxes.
All you need is to know:
- The one place where you’re going to make the most money
- The type of property that will have the most appeal so it does not experience extended vacancy
Are You a Stalker?
If you know all of this and you still want to buy local, why? Are you a stalker? Do you have trouble trusting the professionals you hire to manage your property for you?
Your rental manager is experienced in the best way to legally manage your property and tenants. When you lease your property out, your tenants have rights – you can’t just walk through your property whenever you want! You should leave it up to your rental manager to do regular inspections and report on any issues, as they understand the laws around property management.
You do not need to keep an eye on your property or your tenants. In fact, it’s best if you don’t. Focus on the numbers – that’s what matters.
Send Me The Money
If you’re still not convinced, that’s fine. It’s a free country. But if you choose to buy locally instead of in the one part of the country that’s most likely to boom right now, please write me a check for $50,000 or so for the next few years. I’ll make good use of it, I promise.
You see, that’s how much money you are missing out on if you still choose to invest in a location that isn’t your best opportunity right now. It’s a lot of money, right? If you really believe in the potential for wealth through property, you can’t ignore that much money. Repeat with me: the goal of property investing is to make money! It’s what allows you to achieve all of your actual goals, like:
- Sending your kids to a good school
- Paying off your mortgage
- Funding your own retirement
- Supporting charities
You need money to do those things, and it’s your responsibility to make sure that your property investment decisions are in line with your goals. This means:
Don’t Buy Locally!
Of course, there’s so much more to the ideal property investing strategy, so keep reading my other content and make sure you get in touch and have a chat. I’d be happy to talk more about location with you.
Happy property investing,
Daimien J Patterson