If you are looking to purchase your first investment property or acquire additional residential property to add to your current portfolio then it is important to ask yourself these questions prior to deciding to purchase.
- What Are the Average Property Sale Prices?
You need to do your research on the median prices of property in the area to gage whether it is a good market to purchase an investment property. Not all suburbs are created equal and you want to find the right property, for the right price, that will provide you with maximum return.
- What Are the Local Rental Prices?
Local rental prices are extremely important as it will provide you with a good indication of the likely rental return you will achieve on the property.The best way to find out the rental return on comparable properties is to contact your local real estate Property Manager who will be able to provide you with an indicative rental estimate.
- How Many Rental Properties Are in The Area?
Getting information on the number of rental properties in the area and whether or not their occupied will give you a strong indication as to whether to invest in the area. If there is a high demand for rental properties in the area or if there is a lack of supply of rental properties, then this will indicate whether investing in the area is worthwhile.
- What is the Local Area Like?
Exactly as with selling a property, what the local area has to offer is just as important when assessing if a property will be a desirable rental. What are the local schools in the area like? What are the employment opportunities like? Is there local transport nearby? Also, taking a look atwhat the broader area has to offer in terms of restaurants, cafes and beaches will build on the properties rental appeal.
Twin Water Estate manage rental properties around the Mornington, Frankston and Mount Eliza area and can assist you with purchasing a rental property in the area. Call us today.