Hello, new to this.
I wanted to know how you analyse the household occupancy in an area?
At what certain percentage do you consider a “sound” level for investing a property for rental?
I am just trying to see if you can pick some area with low or medium or high percentage of renting properties as a good springboard to focus on an area…
Sorry for rambling on…
Cheers with thanks, darlsVisit your states REA site, you should be able to find lots of data for the bigger areas, other than that, the ABS site..
Try ‘google’ also..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorABS is definitely a good starting point for finding out the demographics and rental/owner occupier ratio of a suburb.
As for investment purposes and the ideal ratio of rentals/owner occupier, well, that might depend on what your goals are.
If you are aiming for maximum CG, then a good place for an IP is an area that has around 70% owner occupiers. The reason for this is that it is home owners that go into renovating and maintaining their properties to a high standard, while rentals tend to be somewhat neglected. Therefore, because there is a lot of love and money being lavished on owner occupied properties, property values in those areas tend to be higher than in areas of high rentals.
Another reason for going with areas with a majority of owner occupied dwellings is that because properties are often maintained and renovated to a higher standard, they add to the desireablitity of the area by renters who cannot afford to buy there, but want to be associated with those they want to aspire to: ie. owner occupiers of nice houses. This would add to the rental demand of such an area as well.
When you are mainly aiming at cash flow positive properties, then you are maybe more likely to find them in localities with high % of rental properties. Lower standard of housing overall will be found in those areas, so lower CGT. The other possible downside to this type of locality might be that the rental supply is higher and so more competition for snaring a renter.
These are all just general impressions, and there will be exceptions to these.
There are lots of variables when it comes to choosing your ideal IP purchase location. You just have to know what you are trying to achieve, then examine the most suitable locality that will enable you to achieve your goals. A bit of hard slog there, but a few things to think about [wink2]
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