Buying a rental property as an investment can often be a lucrative life decision. However, there are a number of factors in play that could affect your return.
Any potential investors are encouraged to do their research before making the leap into the property investment game. With prices, buyer activity and stock on the market constantly fluctuating, an investment made at the wrong time could become a costly mistake.
First take a look at the vacancy rates in your desired suburb. This will give you some insight on how difficult it may be to find tenants to rent your property.
After that, you may want to check out average rents in the area. If rents are too low, you might not receive a good level of return. Too high and you may find prospective renters pass up the area for more affordable suburbs.
Property price trends may also affect your ability to attract tenants. If real estate value in the area is too low, you may find more people are buying homes, rather than renting them.
Our team can offer advice and guidance on whether now is a good time for a rental property investment.