Obviously these days with the advent of the internet many people have access to investing in properties located in another state from where they live. Some of the advantages that I read about and listen to podcasts include: 1. You can access markets that are in the right part of the cycle 2. You can spread the risk of your portfolio against downturns 3. Reduce your land tax burdon 4. You can have access to more affordable markets that reduce the amount of cash that you have to contribute The disadvantages as I see it: 1. Its harder to manage the property. I have heard of many people being charged a premium to make repairs and maintenance. 2. It requiries a lot of research to make sure you get the right suburb, street and house and then you have to go and travel to the destination which is fine if you have a lot of time but can be difficult if you are limited. There are many people that advocate borderless investing (Especially buyers agents), but quite a few have also been successful in only investing in their backyard. Interesting to hear how comfortable people are with these two options.