Australian investors are expanding their portfolios beyond their home state, new research by Terri Scheer Insurance show.

Figures from landlord insurance provider reveal 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 Australian landlords who own interstate properties investing in the sunshine state. This is followed by Victoria (14 per cent), New South Wales (12 per cent) and South Australia (11 per cent).

Queensland has the lowest proportion of investors who own rental properties in other states. Nine per cent of all Queensland landlords own interstate rental properties. Of these, 39 per cent own rental property in New South Wales, followed by Victoria (22 per cent) and South Australia (16 per cent).

Australia-wide, 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 – insured with Terri Scheer Insurance own property outside ACT borders, while 50 per cent of all Tasmanian-based landlords own rental properties on the mainland.

Terri Scheer Insurance Manager Ms Carolyn Majda said there could be a number of reasons behind the trend.

“These figures show that Australian 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, their research seems to be pointing them towards the sunshine state. They might also be purchasing property they can rent now and holiday in or retire to later.