Do your research
If you’re buying an apartment or unit to rent out as accommodation, then you’ll need to buy in an area with a good vacancy rate. The vacancy rate is set as a percentage figure and indicates the number of vacant rental properties on the market. Therefore, the lower the vacancy rate, the better your chances are of securing tenants.
Inner-city areas tend to boast a low vacancy rate, so this might be a good launching point to start your property search from.
A number of factors can affect an area’s population rate. Housing supply, employment, liveability and affordability are all factors which can influence the number of vacant properties on the market.
Understand the ongoing costs
When you look for an apartment, the most important factor on your mind is likely going to be the price. As apartments and units are usually cheaper than house and land packages, they do make a great investment.
However, apartments and units still have ongoing costs you’ll need to factor into your budget.
Many apartments and units will be subject to strata fees, which can range in price between buildings.
These costs will go towards paying for communal expenses, such as lighting and repairs in communal areas of the complex. This might play a big part in your decision to buy a property, so it is definitely worth checking what these are with the real estate agent.
Get the right location
To ensure your rental property is appealing to renters, it’s best to find an apartment that is located close to good amenities. Nearby features such as entertainment centres, public transport, employment opportunities and shops are all great amenities to keep an eye out for.
It may also be a good idea to find an apartment in a generally good neighbourhood. Across the country, many state governments are creating urban renewal centres, which often provide great investment opportunities.
For information on how Ray White Uxcel can help your investment portfolio grow, contact our property management team today, on 9275 7777.