South Australian landlords Are More Likely To Invest In Their Own State

South Australian Landlords are more likely to concentrate their investments in their state.

LAURA COOK reported that seeing their investments in the flesh, and a stable market, are motivating South Australian landlords to invest in their own backyard, according to local real estate experts. 

Research conducted by Terri Scheer Insurance showed South Australians landlords are the second-most-likely nationwide to purchase investment properties in their own state, with 81.7 per cent of landlords investing in South Australia.

Real Estate Institute of South Australia chief executive Greg Troughton said the numbers reflected the fact that “people know their own backyard, and they know value”.

“South Australian property still represents the best value buying right throughout much of Australia,” Mr Troughton said. He said South Australia’s consistently steady real estate market gave locals confidence to invest.

“South Australia doesn’t have those peaks and troughs, we’re steady-as-she-goes,” he said, describing investing in South Australian property “as good as money in the bank.”

After investing in their own backyards, the next most favoured interstate investment location for South Australians was Queensland, with 9.8 per cent of landlords owning property in the Sunshine State.

Almost 3.5 per cent (3.2 per cent) of SA investors purchased in Victoria, while 2.2 per cent own investment properties in New South Wales.

Harris Real Estate director Phil Harris said when people make a significant investment, like buying property, making it locally has its benefits.

“Residential real estate is one of the major wealth generation tools for average Australians, and there’s a huge advantage in buying locally,” he said.

“For the average investor, most people like to buy a piece of real estate that they can still actually take a drive by, and see that it’s still tracking well.

“It’s about peace-of-mind, and security for people to have proximity to a large asset.”

Tim O’Shea, who has invested in a townhouse at Port Noarlunga and units at Mount Gambier, said he weighed up the merits of buying investment properties interstate.

“I had a look at other parts of the country, but came back to the idea of investing in South Australia,” he said, adding that he intended to continue investing in South Australian real estate, with the relative affordability, good quality housing stock, and good returns available.

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