Key Summary
Before you buy an investment property, it’s important to consider your rental target audience, what they are seeking from a home, and what they consider as value. Let’s look at how you can buy a property that will be snapped-up and have a low vacancy rate.
Where You Buy Dictates to Your Property Investment Success
Okay so you’ve heard the real estate term location, location, location in relation to buying in a favourable location, but in an investment sense location can also refer to the Australian state or territory that you buy in, which can change the preferences of renters.
People who live in different Australian states have different wants in a property. For instance, renters in most states want pools and a place for their pets, but some renters are looking for more luxurious accommodation with a dishwasher and tennis court.
Renters Preferences by State
The top 10 property preferences (in ranked order) that renters look for in a home, depending on which state the property is situated in, are as follows:
| State
|
Renters Preferences (in ranked order)
|
| Victoria | Pool Furnished Courtyard Garage NRAS Study Warehouse Balcony Bungalow Short-term |
| New South Wales | Pool Furnished Garage Granny Flat Study Balcony Gas cooking Pet Pet friendly Entertaining area |
| Queensland | Unfurnished NRAS Furnished Shed Granny Flat Dual living Pool Unfurnished Pet-friendly Pets |
| Australian Capital Territory | Furnished Pool Garage Pets Tennis Court Dishwasher NRAS Gas Study Short-term |
| Northern Territory | Pool Furnished Granny flat Swimming pool NRAS Unfurnished Anchorage Shed Garage Pet |
| Tasmania | Furnished Garage Pet Rural Pool Beach Short-term Views View Wood |
| Western Australia | Pool Furnished Swimming pool Unfurnished NRAS Shed Workshop Granny flat Garage Pets |
| South Australia | Pool NRAS Furnished Granny flat Shed Swimming pool Garage Rumpus Pets Rental |
Source: Domain
According to a recent renter preference survey, in New South Wales, living close to work was a higher priority for renters, whereas is Victoria and South Australia living closer to family was important. These factors dictated to why renters selected a property. Other preferences were as follows:
1. Lower rental costs
2. Peaceful
3. Low crime rate
4. Near family/ friends
5. Close to a supermarket
6. Close to work
7. Close to school
8. Train close by
9. Good vibe
10. Close to the city
11. Pet friendly
12. Close to the beach
13. Close to a park
14. Access to good bus routes
15. Off street parking
16. Near entertainment
17. Near an airport
How to Buy an Investment Property with Renters in Mind
While you contemplate all of these renter wants, you may be thinking to yourself that there is no way that you can afford a property that includes all of these aspects. If this is the case, then it’s important for you to focus only on the top wants. For instance, look to purchase an investment property that is furnished, has a garage, which has a lower rental cost, or buy a property that has a pool and courtyard that is situated in a peaceful area, this will then ensure that you have a better chance of securing long-term tenants and getting low vacancy rates.
Where are the Apartment Hotspots in Australia?
For those looking to buy an investment apartment then Melbourne, Sydney and Adelaide are the places to buy. The national top 10 hotspots for buying apartments are as follows:
1. Fitzroy VIC
2. Melbourne City VIC
3. Richmond VIC
4. Collingwood VIC
5. Adelaide City SA
6. Toorak VIC
7. Abbotsford VIC
8. Mosman NSW
9. South Bank VIC
10. Bondi Junction NSW
Property investors looking to make strong growth should look at the northern Brisbane suburb of Taigum. This suburb is said to be ideally situated and represent value for money, both in investor and renter terms. Plus, the nearby Chermside Centre has been earmarked by local government to be an employment hub in the near future. Other Brisbane suburbs that are anticipated to boom are New Farm, Hawthorne and Bulimba. These suburbs are highly sought after as they are located near the city. This makes them very desirable, but with strict planning in place there is a limited amount of homes available. However, new medium and high density stock has been approved and is in the process of being built.
Before you buy an investment property though, it is vital that you research the market for 6 to 8 weeks. Write down all the features you need, place these in order of priority and determine which are flexible, factor in a 2 to 3% buffer when calculating what you can afford, and look at neighbouring suburbs as these can sometimes offer you better value for money.
Are you thinking of buying an investment property? Then contact eChoice and find the right home loan for YOU today.
