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Property investment can be an enjoyable and financially beneficial endeavour, but there are many factors to consider. Chief among them is location. Borderless investing, or buying outside their home city or state, enables investors to diversify their property portfolio. As an experienced property developer, Michael Akkawi will be well aware of the importance of creating a diverse investment portfolio to build sustainable, lasting wealth.

Borderless investing is not without its risks. One suburb may experience growth, while a nearby suburb may see stagnation. The real estate market is made up of many layers which do not always move in sync, but instead have their own unique cycle. This is evidenced by variations in property markets in 2020, with values rising in one market and falling in others.

A variety of different factors drive localised growth and decline. For example, an oversupply of apartments could make one district perform poorly, while a neighbouring area with an undersupply of apartments may continue to see growth. You can learn more about triggers for property price increases by viewing the attached PDF.

The Benefits of Borderless Investing

By investing outside of their home city or state, investors spread risk across multiple markets, enabling them to take advantage of growth cycles that might be stronger than their local area.

Many investors strictly buy within their own state, refusing to venture past their comfort zone. They want to invest in property they can easily visit to keep an eye on, basing important investment decisions on their proximity to the property rather than facts and evidence.

Most believe that ‘research’ involves simply seeking out properties in their local area, whereas in reality there are much more complex factors to take into account. Many investors follow the logic that “I like living here, so a tenant will too”. This may well be the case, but is it a solid foundation for making an investment decision? Does it really make sound financial sense to limit investment options to those in the local vicinity?

A prudent investor considers a variety of different factors, including public transport links, supply and demand ratios, and drivers of growth. You can learn more about the steps involved in identifying a promising property investment option by viewing the attached infographic.

Since cycles typically peak at different times, by investing in properties in different locations the investor diversifies their portfolio, maximising their likelihood of achieving a profit when each locality enjoys its own day in the sun.

It is vital that anyone considering investing in property carries out adequate research before taking the plunge. From finding the right property to invest in and budgeting, to bringing other investors on board, there are a many different factors to explore. You can learn more about the benefits of property investment by viewing the attached video.