Rental Criteria



From: Trina Blum

Hi all,

Once I've narrowed down the suburb in which I want to buy and investment house is there a basic criteria I should go by to make sure I have good rental demand?

I've heard of buying close to public transport, within walking distance to a shop and a house with carport or garage. Can anyone suggest any others? I've tried searching the posts without much success. Do the real estate/property mgrs have a list?

Also, does it matter if the house is 3x1 or 4x2?

I was also told once that you shouldn't buy in new estates that have a lot of land for sale as the prices don't go up. Does this really matter if I intend to buy and hold the house for 20 years or more? I presume by then that all the land would have been sold off if I did want to sell.

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Reply: 1
From: Rixter ®


Here's my selection criteria -
1/ new or near new for maximum non-cash depreciation deductions
2/ 3x2, 2x1 Villas, Townhouses and Units as these types of properties usually allow you to buy into an area thats closer in to the cbd in a established area much cheaper than if you are purchasing a house..thereby allowing you build a Ip portfolio alot faster
3/ The property must possess a few more of the creature comforts than other rentals available in the area for the same weekly rent being asked....this way prospective tenants choose yours ahead of the rest as they are getting more for their money. ie A/C, heating, gas, security , alarm, 2 car parking with at least 1 bay undercover, spacious interior etc.
4/ Within walking distance to shopping and/or transport facilities, recreational facilities, schools, medical and entertainment areas like movies etc..people want to be close to work & lifestyle facilities.
5/ Good infrastructure near by
6/ High Population growth area because thats what pushes the prices up....if people are looking to get into the area then demand will exceed the supply.
Hope these help.

Happy Investing,
Rixter :)
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Reply: 2
From: Medine Simmons

Hi Trina,

When I have chosen a suburb I usually spend a few weeks just getting to know the rental market. To do this I go to rental open for inspections, visit real estate offices, read the rental ads in the paper and anything else that I can think of that someone looking to rent would do. It helps me to get an idea of which properties rent quickly and which ones hang around for a while, how much people are paying per bedroom, preferred locations etc.. Then I buy a property that compares to ones that the majority of renters are looking for.

Good Luck,

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