Hi guys,
We were thinking of purchasing a nicely renovated 3BR investment rental property in a suburb very close to the Peninsula which has a vacancy rate of approx 2.1%. The property is very close to all major amenities, schools, transport, cinemas, Uni and the local CBD and hospital etc.
After further research, we found there are approx 144 rental properties vacant in this suburb! Now we’re re-thinking whether we should buy in this suburb due to the high number of vacant properties. The percentage of owner/occupiers is 60% with 40% proportion of renters.
What do you guys think? Still worth getting an investment rental in this location even though there are so many vacant rentals online?
Your opinion would be greatly appreciated.
Cheers,
youngmHi youngm
I guess it’s all relative – 144 vacancies in a smallish town is a lot whilst in a larger one it isn’t too bad.
I’d call a couple of PM’s in the area and have a chat about the current situation. Ask them about how many properties they have vacant at present – and if it’s difficult to source tenants at the moment.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Good point, Jamie. This is actually quite a large town with ~34,500 in population.
Spoke to a couple agents in the area and they advise it takes typically 2-3 weeks to get a tenant in, which sounds promising.
I think we’ll go ahead and buy this property we have our eye on and see how it goes :)
Thanks again!
As Jamie said- It’s all relative. I know when I started looking in Mt Druitt there seemed to be a lot for rent but the vacancy rate was VERY low. It’s because there are so many houses (it’s such a huge area).
Good luck with your purchase.
Also chat to the agents about what type of properties are in most demand. No point buying a 3bedder if everyone is wanting 2bedders for instance.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Interesting, I wa in the area two Sundays ago… The area is alive and kicking. There could be allot of homes for rent but ask your self this?
Is there a common theme?
Are the properties being advertised for a high price?
Just keep in mind there are allot of new homes being built in the area…Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
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