There are many key features that make a great rental property and so many factors come into play. Make sure you purchase in an area that has good amenities, many renters may not have vehicles, so they don't want to be walking a distance to catch a bus to the shops or Doctors. A neighbourhood with a high vacancy rate is never a good sign. Know the areas that you are looking to purchase, what the selling prices are in the neighbourhood to work out if buying a rental property is financially feasible for you.
Doing the research first will save you a lot of money, here are our top tips for a great rental property.
1. Narrow down the type of home, location, size, amenities, the age of the property.
2.The neighbourhood in which you buy will definitely determine the types of tenants you will attract. If you purchase near bus stops, TAFE, Universities, shopping Centres and Doctors, if you purchase on a large acreage outside of town, tenants may not want to have to drive in and out of town.
3. Consider the quality of local schools in the area. If there are no good schools nearby, it can affect the value of your investment.
4. Crime, no one wants to be living next door to criminal activity. Check rates of vandalism, break ins and ask about police presence in the area you’re wishing to purchase.
5. The job market is important, growing employment opportunities will attract quality tenants.
6. Amenities – check out the neighbourhood for parks, restaurants, gyms, public transport links, these all attract renters to the area
7. Future development – check out for flood prone areas or check with the local Council for any developments zoned in that area. Is there going to be a lot of construction going on, it’s probably a good sign of a growth area, though additional new housing could also compete with the property your looking to invest.
8. What is the average rent in the area? Research the area and review where it is headed in the next five years.
9. Natural disasters ie floods, fires, make sure you consider insurance premiums, as this is another expense and will subtract from your return.
10. Choosing an investment property isn’t easy. Tenants are hoping for long term leases and will pay more or in advance just to secure a property. This is in favour of the landlord, it’s a fantastic time to buy an investment property, even if it’s your first or third investment, you cannot go wrong.
Contact our First National Property Management Team on (07) 4152 1122 to help you today and answer any questions you may have.