At what vacant level would you not buy in an area

[see_change]

Curious as to people's opinions as to at what level of vacant in an area wouldn't you buy .

Cliff

 

[BayView]

I voted 5%.

But; it also means 95% is rented.

 

[Scott No Mates]

Vacancy rates can also be a seasonal thing - who wants to lease a property at the beach in the middle of a wet winter? or in the sticks on a stinking hot day if it doesn't have a/c?

Maybe it comes down to doing your research for your property type eg: recently built 3 bedrooms in Moree with a/c in good street (one recommended by NSWPF ) vs: 3 bedroom fibro on Newell Highway near the bend.

 

[Brady]

<4% I'm happy. So I've gone with 4% still might buy pending other DD but for the sake of the poll.

 

[WattleIdo]

3%.
If any more than that, I'd have to be prepared to live in it for a while or put the rent right down.

 

[nolive]

I always try to get around 1% and net yield break even at least with reasonable CG potential. Haha

 

[Biz]

To be honest it's not even something i look at. Im more concerned with what kind of industry is in the area. If there is plenty of work and your property is presentable it will rent.

To give an example the first property i ever bought has been my worst performer but the area has a vacancy rate of less than 1%. The problem imo has always been a lack of industry in the area.

 

[hugh72]

>5% I would only be concerned if it was a purchase in a large regional centre but capital cities have so much population growth that any temporary imbalance would quickly be absorbed but saying that I wouldn't buy a CBD unit either at the moment