Four rules for buying a successful rental property
With interest rates as low as they are, now is a good time to think about investing in a rental property. However, there are four rules that we recommend following that will make the buying and ongoing venture of being a rental property owner successful.
1. Do your research
To do well as a property investor you need to know your way around the market, so do some research. This means looking at the average property prices, rents and rental yields in the area. This will help make sure that you:
· Only buy in an area that is growing
· Don't overpay for the property
· Charge the tenants the correct price
I also highly recommend you talk to a broker who specialises in property investment. Check out a great one here.
2. Only invest where people want to live
If more tenants want to rent your property it will obtain a higher rental income. For that reason, you should stick to buying an investment property in areas that people want to live in and where demand is high.
You should also consider the future of the area. Lookout for new developments, lively cafes and shops planned for the area.
3. Keep tenant demand in mind
Make sure there's demand from tenants in the local market when buying. For example, if you're purchasing in an area occupied mainly by students and young professionals, a lower cost, one or two bedroom property might be your best investment option. But if you're wanting to invest in a higher-income family area, a three or four bedroom property might be a better choice.
4. Build a team
Rental property owners rarely succeed on their own. Most do with the help of a team of professionals like property managers, mortgage brokers and accountants to make sure everything runs smoothly so you can get the most out of your investment.
If you’re new to owning a rental property or seriously thinking about buying one, get in touch with the team at Nice Place so we can help you be a successful rental property owner.