Real Estate Investors Need to Take Care
Real estate can be the ideal investment as long as investors choose an easy-to-maintain, attractive property in the right location so tenant demand will always be high, reported the Ninemsn website.
Investors should be aware suburbs are often combined for property price research, so individual suburb knowledge is essential when selecting property.
According to Pam Walkley from Money magazine, rental statistics are often misleading.
Michael Matusik claimed that after scrutinising the 1600 postcodes in Australia, he found a 52% increase in vacancies. Tenants are even choosing location over size.
Investors need to understand competition in the rental market is fierce and trends change. For example, younger Australians prefer smaller properties and inner city living.
Matusik also said that younger Australians will be renting for some time because they are choosing to live in more affordable share accommodation instead of buying.
Factors to consider when attracting tenants were provided by property expert Michael Yardney.
- Families prefer houses, while Double Income, No Kids (DINKs) households prefer medium density.
- Nearby amenities such as parks and schools
- The ease and speed of access to work centres by car and public transport
- The appearance of surroundings
- The need to renovate or repaint to increase value
AFG’s data showed signs that the property market, is on the rise with a substantial proportion of new home loan applications being given to investors.