Hello everyone
I’m a real novice in the game. Got inspired by Steve’s book and found a number of regional properties that pass the 11 second test.
How can I evaluate whether a property would be easy to rent out though?
Any idea? I’d be grateful for any suggestions or help from those who have done it.
hi nguyen,
It’s not too hard…
We try to find 3br properties that are in a reasonably close vicinity to schools, train stations, shops, etc..
The house doesn’t have to be flash, just basically clean with a low maintenance small yard.
Ask the opposition real estate property manager as to whether there are any major problems with the street etc, ‘cos they don’t have anything to lose by telling you the truth.
We try to drive past the prospective house at night time, just to check if there are any “gang warfare” signs. [medieval]
If all seems ok, and the numbers stack up, then jump in and give it a go.
It gets easier each time…
Good luck,
Del [smiling]
Hi ngyugen,
All that wilandel has mentioned plus anything else that you can think of to ask about the property.
Check out the local paper in the area of the property; look at how much rents are, or try http://www.realestate.com.au and click on RENT section and see what properties are renting for in the area.
Ask the RE about its history, has it ever been rented, if so, how much for?
Have a look around, walk or drive around and see how close it is to schools, shops, transport, parks, and/or beaches. These things are important to tenants; even if they have cars, it is always good to know they can jump on a bus, tram or train, and that it’s nearby.
Talk to people who live in the area, or those who know of it, or have lived in it.
Try http://www.property.com.au and check out the free suburb snapshot, see how the area is faring as far as growth, household occupancy, no. of schools in area, area size etc etc etc.
These are just some suggestions; but the bottom line is ASK, ASK, and then ASK as much as you can.
Good luck,
Jo
Hi Monopoly
“Try http://www.property.com.au and check out the free suburb snapshot, see how the area is faring as far as growth, household occupancy, no. of schools in area, area size etc etc etc.”
What criteria will you consider when deciding whether to invest in a town? I’ve looked at the snapshot but it didn’t make much sense to me. Would you enlighten me and give me examples of how to ‘read’ into the stats and which indicators to look out for?
Thank you for your patience.
Hello again Nguyen,
Firstly, the suburb snapshot should only be a guide, and not something that one should STRICTLY take as an accurate or complete picture of the suburb they are looking at.
When you select the suburb, it will give you an indication of the kind of growth (median house prices), capital growth over (I think from memory) the last 10 years and they type of occupants/percentages in the households within this area. As well as, the size of the area, the number of schools, childcare centres. It helps one to understand what sort of people live in the area (whether they be owner-occupiers/home owners, or people renting, age ranges, socioeconomic factors etc). All of this information is valuable, but SHOULD NOT be taken in isolation. You need to do a great deal of homework before you make your final decision.
As I said, use it as a GUIDE only, not as a determinating factor in your property investment decisions!!!
Talk to people, get their views, check out other rental prices in the area of interest and so on.
All the best, and please remember, the other points I (and others) have mentioned need to be considered as well.
Cheers,
Jo
Hi
EZ-Rent has a property condition checklist which, while not geared towards ‘rentability’, allows you to cover a lot of things that affect it such as drainage, carports, security, etc. You may find it useful.
Just load it up, click on “Buy New Property” and check the “Property Checklist” tab.
cheers
EZ-Rent. The free tax and cashflow simulator for Australian property investors. Version 2 out now!
http://www.ez-rent.com
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