PR Log - Aug 29, 2011 - Australian investors are “thinking outside the state” and purchasing rental properties beyond their home state borders, according to Australia’s leading landlord insurance specialists, Terri Scheer Insurance.
Figures from Terri Scheer Insurance show that Australia-wide, 20 per cent of its insured landlords own rental property outside the state or territory in which they currently live.
Queensland is their preferred destination, with more than half – 51 per cent – of interstate investors owning rental property in the sunshine state.
This is followed by Victoria (14 per cent), New South Wales (12 per cent) and South Australia (11 per cent).
The Australian Capital Territory and Tasmania have the highest proportion of investors who own interstate rental properties.
More than half of all ACT-based landlords – 57 per cent – own property outside ACT borders, while 50 per cent of all Tasmanian-based landlords own rental properties on the mainland.
This is followed by landlords in the Northern Territory (39 per cent), New South Wales (28 per cent), Western Australia (27 per cent) and Victoria (23 per cent). Queensland and South Australia have the lowest proportion of landlords with interstate properties at 9 per cent and 10 per cent respectively.
Terri Scheer Insurance Manager Ms Carolyn Majda said there could be a number of reasons behind the trend.
“These figures show that today’s property investors are not afraid to ‘think outside the state’,” Ms Majda said.
“They are very astute and not limiting themselves to properties within their home state or territory borders.
“This suggests that investors are doing their homework and choosing rental properties in areas they believe will give them the best returns, regardless of where they live.
“With Queensland the preferred destination for interstate property investment, this research seems to be pointing them towards the sunshine state. They might also be investing in property they can rent now and holiday in or retire to later. “Technologies such as real estate websites and Google Earth are making it easier for investors to look for and research interstate properties online. “While it’s difficult to gauge this from the figures, it’s possible that some people are moving interstate for work and lifestyle reasons but keeping their existing properties to generate rental income or in case they intend to return.” Ms Majda said that whatever the reason for owning interstate rental property, there were important risk management implications to consider.
“When you live in a different state to your rental property, managing it can be a challenge,” she said.
“If you live too far away to undertake regular inspections and your tenant damages the property, you might not find out until it’s too late and costly to repair. “Appointing a local property manager is a must as they can give your investment the hands-on attention it needs.
“Not only will they be able to assist with tenant selection and inspect the property on a regular basis, they can also identify and help you to solve any maintenance issues that arise.
“Tailored landlord insurance is also worth considering. Even the best tenant can accidentally damage a rental property or suffer financial hardship that leaves them unable to pay the rent.
“If you’re required to travel interstate to inspect tenant damage, the last thing you want is to pay for the cost of that damage from your own pocket.”
- ENDS -
Media contact:
Susan Barnes at Corporate Conversation, 08 8224 3535
Proportion of Australian landlords who own rental properties outside their home state:
• Australian Capital Territory – 57% of landlords
• Tasmania – 50%
• Northern Territory – 39%
• New South Wales – 28%
• Western Australia – 27%
• Victoria – 23%
• South Australia – 10%
• Queensland – 9%
Of the 20% of Australian landlords who own rental property in a state other than where they reside:
• 51% invest in Queensland
• 14% invest in Victoria
• 12% invest in New South Wales
• 11% invest in South Australia
• 5% invest in Western Australia
• 3% invest in the Northern Territory
• 2% invest in Tasmania
• 2% invest in the Australian Capital Territory
Source: Terri Scheer Insurance
About Terri Scheer Insurance
Terri Scheer Insurance Pty Ltd (Terri Scheer). Terri Scheer provides insurance cover for landlords, helping to protect them against the risks associated with owning a rental property. These include malicious damage by tenants, accidental damage, landlord’s legal liability and loss of rental income. Terri Scheer acts on behalf of Vero Insurance Ltd, the insurer which issues the insurance cover. Terri Scheer has not taken into account the reader’s objectives, financial situation or needs. If you are interested in any of Terri Scheer’s insurance products, the relevant Product Disclosure Statement should be considered first. It can be viewed online at www.terrischeer.com.au or obtained by calling 1800 804 016. Based in Adelaide, Terri Scheer services all states and capital cities.
- - -
Terri Scheer is a specialist in landlord insurance. Protection and peace of mind for owners of professionally managed investment properties.
Read Full Story - Australians invest in property beyond state borders | More news from this source
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Figures from Terri Scheer Insurance show that Australia-wide, 20 per cent of its insured landlords own rental property outside the state or territory in which they currently live.
Queensland is their preferred destination, with more than half – 51 per cent – of interstate investors owning rental property in the sunshine state.
This is followed by Victoria (14 per cent), New South Wales (12 per cent) and South Australia (11 per cent).
The Australian Capital Territory and Tasmania have the highest proportion of investors who own interstate rental properties.
More than half of all ACT-based landlords – 57 per cent – own property outside ACT borders, while 50 per cent of all Tasmanian-based landlords own rental properties on the mainland.
This is followed by landlords in the Northern Territory (39 per cent), New South Wales (28 per cent), Western Australia (27 per cent) and Victoria (23 per cent). Queensland and South Australia have the lowest proportion of landlords with interstate properties at 9 per cent and 10 per cent respectively.
Terri Scheer Insurance Manager Ms Carolyn Majda said there could be a number of reasons behind the trend.
“These figures show that today’s property investors are not afraid to ‘think outside the state’,” Ms Majda said.
“They are very astute and not limiting themselves to properties within their home state or territory borders.
“This suggests that investors are doing their homework and choosing rental properties in areas they believe will give them the best returns, regardless of where they live.
“With Queensland the preferred destination for interstate property investment, this research seems to be pointing them towards the sunshine state. They might also be investing in property they can rent now and holiday in or retire to later. “Technologies such as real estate websites and Google Earth are making it easier for investors to look for and research interstate properties online. “While it’s difficult to gauge this from the figures, it’s possible that some people are moving interstate for work and lifestyle reasons but keeping their existing properties to generate rental income or in case they intend to return.” Ms Majda said that whatever the reason for owning interstate rental property, there were important risk management implications to consider.
“When you live in a different state to your rental property, managing it can be a challenge,” she said.
“If you live too far away to undertake regular inspections and your tenant damages the property, you might not find out until it’s too late and costly to repair. “Appointing a local property manager is a must as they can give your investment the hands-on attention it needs.
“Not only will they be able to assist with tenant selection and inspect the property on a regular basis, they can also identify and help you to solve any maintenance issues that arise.
“Tailored landlord insurance is also worth considering. Even the best tenant can accidentally damage a rental property or suffer financial hardship that leaves them unable to pay the rent.
“If you’re required to travel interstate to inspect tenant damage, the last thing you want is to pay for the cost of that damage from your own pocket.”
- ENDS -
Media contact:
Susan Barnes at Corporate Conversation, 08 8224 3535
Proportion of Australian landlords who own rental properties outside their home state:
• Australian Capital Territory – 57% of landlords
• Tasmania – 50%
• Northern Territory – 39%
• New South Wales – 28%
• Western Australia – 27%
• Victoria – 23%
• South Australia – 10%
• Queensland – 9%
Of the 20% of Australian landlords who own rental property in a state other than where they reside:
• 51% invest in Queensland
• 14% invest in Victoria
• 12% invest in New South Wales
• 11% invest in South Australia
• 5% invest in Western Australia
• 3% invest in the Northern Territory
• 2% invest in Tasmania
• 2% invest in the Australian Capital Territory
Source: Terri Scheer Insurance
About Terri Scheer Insurance
Terri Scheer Insurance Pty Ltd (Terri Scheer). Terri Scheer provides insurance cover for landlords, helping to protect them against the risks associated with owning a rental property. These include malicious damage by tenants, accidental damage, landlord’s legal liability and loss of rental income. Terri Scheer acts on behalf of Vero Insurance Ltd, the insurer which issues the insurance cover. Terri Scheer has not taken into account the reader’s objectives, financial situation or needs. If you are interested in any of Terri Scheer’s insurance products, the relevant Product Disclosure Statement should be considered first. It can be viewed online at www.terrischeer.com.au or obtained by calling 1800 804 016. Based in Adelaide, Terri Scheer services all states and capital cities.
- - -
Terri Scheer is a specialist in landlord insurance. Protection and peace of mind for owners of professionally managed investment properties.
Read Full Story - Australians invest in property beyond state borders | More news from this source
Press release distribution by PRLog
