Hi All,
What do you think of investing in a given area with a Rental Vacany Rate of over 3% ?? From a book I’m reading at the moment the authour says he wouldnt invest in an area higher than 3%.
The suburbs I’m currently looking at to invest in are around 4-6%.
[mellow]
It is the starting that stops most ppl.
Hi Jarrn,
From distant memory the 3% figure was promoted as the rate at which there is equilibrium in the rental market. Anything above this made for a tenants advantage, anything under this made for a landlords advantage.
Generally speaking rental vacancies can be seasonal and they do vary according to a whole range of circumstances present at the time.
Derek
[email protected]Read my comments? Think I can help you? PM or email me.
jarrn,
What book are you reading, who is the author. He/She must have very few areas of interest to invest in if that is what they are preaching. Hear what they have to say in the books but don’t neccessarily listen. Do your own maths sometimes instinct comes from research.
aluminati.Im reading/read 7 steps to wealth by John L Fitzgerald.
It is the starting that stops most ppl.
Jarrn
Is the property you are looking at a unique property, or run of the mill? What I mean is if there is an abundance of 3 bedroom houses untenanted, maybe don’t look at 3 bed houses. You have to gauge the market in the area you are looking for and buy a property to suit the accomodation needs of the population. This way you can be at the better end of the vacancy rate.
‘Eat rich food, barbeque a yuppie’ [greedy]
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