Whether your a first time buyer or a seasoned investor, there are a few key features an investment property must have. The property must be able to achieve an increase in capital growth, an increase in rental yield and have low costs associated with maintenance or strata levies. It is also helpful if there are less other properties available for rent in highly desirable areas to create upward pressure on prices.
Areas with a wave of new housing supply are the best options for tenants as there usually is a downward pressure on prices. Suburbs such as these are not the best options for investors as there are long vacancy rates and an over supply of apartments. Usually a number of apartments settle at the same time and they all go to market at the same time creating an over supply. This is occurring in suburbs like Zetland and Ryde where developers have created a tonne of apartments which has also effected greater Sydney’s rental prices.
According to the latest quarterly Domain Rental Report, median weekly asking rents for homes has dropped $25 to $525. Low vacancy suburbs for units include Kirrawee, where rents have risen 8.7% to $500, darlington, which increased 8% to $540; and Glebe, which rose 7 % to $534. The trend the suburbs have is they are all close to amenities like rail, good schools and are located close to Sydney’s CBD.
Properties which still have room for capital growth and increases in rental yields which are not located within construction boom areas and have good amenities whilst be closely located to the CBD are situated in areas such as Glebe, Annandale, Darlington and Leichhardt. The Inner West is a good pick for any investor.
If you are looking to buy, sell or secure a property manager for your property please give us a call on 9 357 4086