All Topics / General Property / How do you find out the vacancy rate for a suburb?

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of tom123tom123
    Participant
    @tom123
    Join Date: 2013
    Post Count: 91

    Hi all i was wanting to know what the calculation was for figuring out the vacancy rate for a suburb, and which is the best way to get the information needed for the calculation.

     

    Cheers, Tom

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    The rear pages of the Australian Property Investor Magazine, or via http://www.sqmresearch.com.au

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,376

    Hi Tom,

    As JacM said, the API mag can be good, but it will often be two or three months in arrears. Still, it can provide a “history” of a suburb if you are wanting to observe that suburb over time.

    Another way to consider (especially if you are buying in your own area – but then, there is always the phone, eh?) and that is to talk to your friendly RE agents. Ask them how many properties they have on their rent roll, and how many they have vacant. This can lead to “spikes”, but their words can also give a feel for the vacancy rate – e.g. “We can’t get enough homes to rent!”).

    If you talk with 3 or 4 RE agents, and they all have very few homes on a large rent roll, then this might be a more up-to-date answer anyway.

    The calculation is simply “Homes available for rent, divided by total homes able to be rented” So, if an agent has 200 on rent roll, with just 4 available today, that is a 2% vacancy rate. (4/200 = 2%)

    Benny

    Profile photo of tom123tom123
    Participant
    @tom123
    Join Date: 2013
    Post Count: 91

    Thanks guys very helpful!

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    … or you can attend the open for inspections for properties in the target area. You will observe current demand very quickly in this way. If you see queues of people at the front of the property (like the queue at the bbq at Bunnings) waiting for the open, and several people asking for application forms, that shows you demand. Go inside and listen to what people are saying to understand what the features are that are attracting the people.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of mattstamattsta
    Participant
    @mattsta
    Join Date: 2011
    Post Count: 604

    Personally I use the SQM Reseach for vacancy rates. It’s free to use their vacancy rate platform as well, which is very useful.

    Other than that I prefer to physically check out the suburb and get a feel for the vacancy, by driving around and talking to RE agents and other investors who have invested in the area.

Viewing 6 posts - 1 through 6 (of 6 total)

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