- 26 Oct, 2015

Property Investment: Understanding Your Rental Target Audience

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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

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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.

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