Hi everyone,
this site has taught me alot about how much I don't know about property investing. Here is a question for those more knowledgeable/experienced than me:When targetting a suburb for a potential investment property do you prefer a suburb with a high percentage of rental occupancy or a high percentage of owner occupiers? My thoughts are that suburbs with a high percentage of owner ocupiers tend to be nicer suburbs because an owner occupier is going to look after and improve their property more than a tenant but maybe I'm wrong. I just read something that indicated a high percentage of renters indicates that it's a suburb which is desirable for renters and therefore should be favoured when buying an investment property.
I'd appreciate any thoughts.
David
I prefer a high capital growth suburb with a median price range affordability and an acceptable lifestyle. Dont get too emotional with your property investment about how owner/occupiers look after their properties, your priority is to look after your interest to service your investment.
I want an area that has a good representation of renters, and a good amount of factors to support cap growth (infrastructure, employment opportunities, transport, etc), ability to add value and good tax benefits from the property as well.
Without good rent returns and tax benefits (cashflow) the investment will fall over if you can't carry the neg cashflow, and there is no guarantee of cap growth – only an educated guess that it will occur. The ability to add value is a hedge against low cap growth in the short term.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
