W&N News
Entering the investment game can be daunting at first.
We sat down with Property Manager & BDM, Sally Jones to pick her brain on what to look for when investing in property.
First, understand how to calculate the yield:
Divide annual rent by value of property multiply this by 100 to get gross rental yield. However, take into consideration the yield less expenses and interest on borrowings.
Next is to consider demand. Where are renters looking to live and what type of property do they need?
The widespread housing affordability issue is driving strong demand for 3-4 bedroom homes with storage and double garage. Anything leasing under $800 per week is seeing multiple applications and seeing historical low vacancy rates. In saying that, people are needing to see value so placing a high rental amount above market value is still considered a no-no.
The average rental yield in Victoria is around 3.6% so aiming for 2-4% should be a good rule of thumb when running your numbers.
Sally is part of our Property Management team and is passionate about empowering people to leverage property to benefit their financial wellbeing.
If you’re looking to invest or a property management health check for an existing investment, contact Sally on 0419 895 227
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