Hi,
How could I get a good rental guide for places that I'm keen to buy for investment? I find that sometimes the selling agent will quote a higher rental price and my other source is to check current rental for the same area from property websites. The only problem with property websites is that sometimes there are no similar properties for rent.
Any ideas? I was thinking of dropping at an RE office but not sure if they would entertain me, considering that I don't own the property.
Thanks.
Most Real Estate Agents are happy to give you an idea of what a property might rent for. You can also ask for written rental appraisals from these other agents. If you find a suitable property, give serious consideration to employing one of the more helpful R E as your property manager. Many banks want a written rental appraisal when assessing loan applications for IPs
cheers
Sonya
Thanks for the tip, Sonya.
If the property is not located in a long distance from you I suggest to do judgement by yourself. Go to the location and if possible talk to the neighbors. That might be helpful to become sure about the original price.
Interesting topic, I have been thinking about the same thing. Would it be better to purchase a apartment inner city because you now people rent close to the city but for a similar amount of money you could purchase a Unit or house in an outer suburb. For a Melbournian I am comparing StKilda East to Dandenong for example. But question is "who rents in Dandenong"? Do you get people renting out that far or is it mainly owner occupiers and home owners etc etc
Sometimes I wonder why would a family or a couple rent out in the outer suburbs, I may never get tenants……….my panic mode sets in….Any thoughts?
lucigoosey wrote:But question is "who rents in Dandenong"? Do you get people renting out that far or is it mainly owner occupiers and home owners etc etcThe answer according to rp data is that 49% of households in Dandenong are renting – does that set your mind at ease?
lucigoosey wrote:Sometimes I wonder why would a family or a couple rent out in the outer suburbs, I may never get tenants……….my panic mode sets in….Again, according to sqm research the vacancy rate in Dandenong is only 1.9%. 3% vacancy is considered "balanced".
Hi xya,
This is my first ever post but thought i'd share my experience with you.
I purchased my one bedroom apartment back in Aug last year in South Yarra and the agent told me that the rental return was $280 to $320 a week. 6 months later, i leased it out for $420pw
Also didn't bother to use the services of an agent so also saved on their fees & charges.Good luck
Thank you that is some very valuable information, how does one get informaion like this? I guess you may also know how do you find information that can advise on future happenings/trends of a suburb/centre/area?
Research, Research and Research!
Knowing the area is very important as well as your target market.In my case, it was young professionals so i purchased the apartment close to the city, close to trains, trams and the bars on chapel st.
80% research, 20% luck
yes very true, the more research i do the more research i want to keep doing…….. if that makes sense. I think you have hit the target market on the head there. How is it going? i assume there are many rentals on the market around chapel st is your appartment always occupied?
Hi Lucigoosey,
Since my apartment is nicely located in the inner city as well as being nicely renovated, i had the reverse problem of which tenants to choose!I did not use the services of an agent and paying the 8% commissions + advertising fees + listing fees etc.. saving me about $1,500-$2,000 pa
I did the whole thing by myself and found that I would get 100+ enquiries each time (depending on your situation, an agent may be more convenient). I went through the same process of what an agent would have done by processing each candidate via their application form and chasing up references etc..From what I have learnt, You can't go wrong with selecting an inner city location so my pick would be StKilda East rather than Dandenong.
Furthermore, the decision of whether to furnish your property depends on what strategy you want to adopt.
Generally, Fully Furnished apartment gets the higher rental return but tenants generally stay there for 6 to 12 months. As opposed to Un furnished where you sacrifice the high rental yield in return for longer lease terms.Hope that helps
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