To fill your property’s vacancies, find out the vacancy rate in your area. The rate will indicate how easily you can fill your property with tenants. You don’t want to have a vacant property for months on end.
You can check rates online or talk to local real estate agents.
You’ll also want to know how much rent you can potentially earn from your investment property. Again, online research and speaking to local real estate agents can give you a good idea of what to expect.
You can also ask current tenants in the area how much rent they’re paying. Rental Yield
Rental yields are an excellent way to compare properties and their potential returns. To calculate rental yield, you divide the annual rent by the property’s purchase price.
For example, let’s say a property costs $200,000 and returns $24,000 in rent each year. The rental yield from these numbers is 12%.
When you’re considering an investment property, it’s crucial to think about future development in the area. You don’t want your property to be in the middle of nowhere during a city extension.
Talk to local real estate agents and developers to get an idea of the plan for the area. Schools
If you plan to rent to families, the local schools will be a significant factor in your decision. Families want to live in areas with good schools, so make sure there are plenty of school options.
You can also check school rankings online or talk to parents in the area. Employment
Another critical factor to consider is employment. After all, you want your tenants to be able to pay their rent on time! Discover the local employment situation by talking to
businesses in the area. You can also search online for job postings to get an idea of the jobs available.
When choosing an investment property, you should also consider the area’s entertainment options. After all, who wants to live in a boring neighbourhood with nothing to do?
Again, it’s worth your while to talk to local businesses and residents. They’ll help you get a sense of the area’s entertainment options.
Finally, make sure you’re happy with your investment property’s neighbourhood. After all, you don’t want to end up with a property in a community that you don’t even like!
Once you’ve considered all of these factors, you should know whether or not a particular investment property is right for you.
Active Agents is your resource for rentals that will fit your needs. With our extensive listings database, we’re sure to have something perfect for you! Contact us today on 1300 141 446 to learn more about our services.