How do you determine if an area that you might be interested in investing in, has a market for rental properties?
Are real estate agents going to lie to you about rental prospects if they think you might buy an investment property of their books?
When doing a search via online real estates I if there are only a few rentals does that mean there is no demand, or that there is demand and all the properties have been rented out?
Sorry for the dumb questions, just finding it hard to get the research started.
Also how small in population would an area be to be too small to invest in..even if it was showing some growth…(about 2%)
Estate agents wouldn’t lie to you would they[biggrin] but they may be a little over enthusiastic.
We see this all the time with investors “promised” unrealistic rentals and when the proeprties don’t lease out at that rent, the agent explains how the market is slow at present.
Ask a different agent in the area what the rent would be if you brought a property across to them to manange.
The best source of current market rentals is looking up rentals on the web portals such as realestate.com.au That’s exactly what tenants do and they are very aware of what rentals should be.
The fact that there are only a few properties for rent could mean that there is no demand as you say or it could mean the opposite – all the properties have leased quickly.
From the tone of your post it suggests that you are looking in a small town and this can be a real problem as rental demand can be very low in these towns and properties can remain vacant for a long time.
Have a look at the internet ad and see if there is a date when the property became available for rent or ask the agent how long the property has been vacant, then keep a track of the ads and see how long they take to lease.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auyou can also pull reports from RP data or upmarket or similar programs which allows you to do demographic reports including data on proportion of population that is renting in an area vs owner occupiers.
To determine what price it would rent for, ring agents, say that you are a tenant and ask to see what they have on their books for you to rent. Check out also the local paper for private
rentals.Cheers
Xenia
We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
[email protected]
phone 0412 437 582
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