Many people love to travel and frequently visit the same destination. Others want to own properties all over the country and build up a profitable real estate business. No matter your reasoning, buying property in another state is an exciting prospect. You don’t have to limit yourself to whatever is in your general vicinity, and there is potential for huge growth. However, there are also downsides to owning property that is not close to you. These are some things you should keep in mind when considering making a purchase.
Could I do the same thing here?
If you are looking for a vacation home, the answer to this question is likely no. If you want to own an apartment building and become a landlord, this answer may vary. In some areas, it may be difficult to operate as a landlord, which presents the opportunity to buy a property elsewhere. Particularly if you live near state lines, this may be a point to consider. However, if you can do the same thing here, you probably will not want to pursue this.
Who will maintain the property?
Owning a vacation property still requires work when you are not there. Someone will need to make sure the landscaping is kept up and that the house has not been broken into and it has not been ruined by a natural occurrence. Even more difficult is keeping up an apartment building, as tenants will frequently have requests, and you will be legally obligated for maintaining the safety and security of the property. Keep in mind that in either of these scenarios, you may have to hire a property manager to keep everything up to code.
Are there laws that will get in my way?
Local municipalities have all kinds of zoning codes that can cause problems for even established landlords and homeowners. Make sure to look into every law related to your purchase and understand that you must abide by them. Furthermore, you may run into problems simply for living in another state. Do not try to test boundaries.
Do the benefits outweigh the costs?
Although there is the monetary component of this, I ask this more as a general question. Are all the headaches worth the value you’ll receive? Are you going to rush into a decision without thinking about it, only to regret it later? Consider all of the pros and all of the cons before going through with anything.
Buying a property in your own area is stressful enough, but buying a property in another state can cause a lifetime of problems. Before making any quick decision, really take the time to investigate whether or not buying out of state is the right option for you.