Should first-time property investors venture interstate?

Perth is widely regarded as the bargain market of the year.

Should first-time property investors venture interstate?

Everyone likes to think they know their own neighbourhood. As a result, “home bias” is a major issue among property investors.

For first-time investors the issue is acute. The first steps into property would be even more daunting if the investment were in a distant city. But staying at home – especially in Melbourne – may just mean missing the best opportunities.

Just now in the national market, the city of Perth is widely regarded as the “bargain” of the year with high yields and rising prices.

On the show today, we cover a recent deal in the city on a yield of 8 per cent – a figure unknown to investors in Sydney or Melbourne.

The majority of investors – older and newer – would not be familiar with the finer points of this flourishing market. Maybe, it’s time to find out …

Who is the guest?

James Gerrard of www.financialadviser.com

Why him?

He is an adviser with extensive experience in property investment

What are the topics?

• Making sure you are not being dudded by the body corporate

• Buying interstate – the pros and cons

• A cool response to making changes on capital gains tax

• Where are exiting property investors putting their funds?

Question of the week

Regular reader Ben asks: “If all these landlords are selling up, what are they doing with the cash? Paying off debt that should free up debt for owners to buy the houses (but maybe the banks are just issuing less debt).

Or are they rolling the proceeds into another form of investment; if so which one – shares, bonds, commercial property?

Questions always welcome to the podcast, via [e-mail]