All Topics / General Property / is there a “vacancy rate” formula?

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of StriderStrider
    Member
    @strider
    Join Date: 2004
    Post Count: 8
    March 4, 2004 - 2:41 am

    Hi – I’m interested in buying an IP in a rural town in South Queensland (population 10,000). After ringing a couple of agents it seems they have about 30 houses vacant on their books. Not sure how long they’ve been sitting vacant.

    Does that ratio seem too high? Is there a formula for working out acceptable vacancy rates?

    Many thanks for any advice
    cheers
    Graham

    Profile photo of RugbyfanRugbyfan
    Member
    @rugbyfan
    Join Date: 2003
    Post Count: 683
    March 4, 2004 - 2:50 am

    Have a closer look at what sort of properties they have for rent. They will more than likely have a range from 1 bed units to 5 bedroom houses. Each property will have a specific market and the idea is to try and find that market that has a low vacancy rate. It may be a 3 bed house or it may be a 2 bed unit. It would depend on what industries are in town or close by and what sort of people the town is attracting (ie. families, singles, retirees etc)

    ‘Eat rich food, barbeque a yuppie’

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    March 4, 2004 - 2:56 am

    Ask the agent what that is as a % of his total rent roll.

    I don’t know what would be an acceptable figure to you. perhaps 5% or less?

    Cheers,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of JetDollarsJetDollars
    Participant
    @jetdollars
    Join Date: 2003
    Post Count: 2,435
    March 4, 2004 - 3:08 am

    Graham,

    You got to know what sort of properties you are after. For Example 3br house with 1 LUG. Then out of the 30 houses vacant find out how many are there for 3br house with 1 LUG.

    If out of 30 houses does not have the kind of property that you are after then I think it is a good thing.

    But before you do anything, you got to know what sort of property people living in the area like to live in ie. demand.

    Warm Regards

    ChanDollars
    [Keep going, you’re on your way to Frolic Freedom!]

    Profile photo of RugbyfanRugbyfan
    Member
    @rugbyfan
    Join Date: 2003
    Post Count: 683
    March 4, 2004 - 3:14 am

    Chan$

    Thanks for simplyfying my load of drivel.

    I sometimes wonder how I made it through school!

    ‘Eat rich food, barbeque a yuppie’

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    March 4, 2004 - 3:21 am

    Graham

    Which town In SEQ?

    Cheers Richard
    richard at fhog.com.au
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Australia's leading private lender

    Profile photo of StriderStrider
    Member
    @strider
    Join Date: 2004
    Post Count: 8
    March 6, 2004 - 2:55 am

    Hi Richard – it’s in Dalby. Seems an ok town – about 2.5 hour drive from Brisbane.

    But I missed out on it – had been sitting for a few weeks, vendor accepted a low offer, then 2 days later someone else offered more – heaps more.

    Oh well, you get that.

    cheers
    Graham

    Profile photo of bkim4270bkim4270
    Participant
    @bkim4270
    Join Date: 2002
    Post Count: 3
    May 28, 2007 - 12:09 pm

    Hi everyone,
    I would like to know more about Dalby , please can some one advice that I should invest in Dalby ? Will Dalby grow in near future ?

Viewing 8 posts - 1 through 8 (of 8 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.