hi guys. we are interested in a property west of toowoomba. the vacancy rates are low about 1% , good growth etc. but checking on the web some house s in our range seem to be available for rent for a long time – over 2 months. are there other factors we need to take into account when looking at small towns. also when can i find specific vacancy rates for price bracket.
thanks chrisHi chris, I would use vacancy rates in conjunction with speaking with a couple of local property managers, they are usually more than happy to answer these type of questions, as they could get your business, and they are usually the most informed as they are in the rental market everyday
Brischris wrote:hi guys. we are interested in a property west of toowoomba. the vacancy rates are low about 1% , good growth etc. but checking on the web some house s in our range seem to be available for rent for a long time – over 2 months. are there other factors we need to take into account when looking at small towns. also when can i find specific vacancy rates for price bracket. thanks chrisHi Brischris,
There could be a number of reasons why property has been on market for a little while, could be priced too high, bad area or dated interior, small rooms etc. In my experience, in small towns the cost of entry is a lot lower and therefore the yields tend to be a lot higher than capital cities, although this is offset against lower capital growth than capital cities.For small towns, vacancy rate is worthwhile looking at, but also what is driving the town, ie is the main industry/employment mining or manufacturing (if this closes down-peole will move away). I'd look at if there is potential or encouragement for businesses to move there in the future, any changes to highways (some country towns in victoria which used to be on freeway) are bypassed now with new roads. Also how close is it to main cities as many people now are doing sea change and moving out of big cities to getaway places on weekends or don't mind commuting.
Cheers
You need to dig deeper than the overall vacancy rate. Regional hubs generally have pockets of less desirable areas to live where the vacancy rates are likely to be higher than the overall average. Is the property in a lower socioeconomic area?
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]
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