When purchasing a property for investment purposes, as opposed to living in it yourself, it is important to ensure that it is attractive to good quality potential tenants so as to maintain constant tenancy. The property doesn't necessarily have to have features that you like personally, rather ones that tenants deem to be necessary and attractive.
Such essential elements are dependent on both the area in which the property is located as well as the types of tenants you are targeting. For instance, in areas where tertiary institutions are prominent, rental properties that cater to student living (i.e. accommodate shared living and are affordable) should logically enjoy consistent residency.
So, what attributes should investors look for when purchasing a property?
Family suited properties in suburban areas
If investors wish to attract families as tenants, the following property features may prove to be attractive:
• Number of bedrooms – at least three reasonably sized bedrooms will allow families to accommodate several children
• Proximity to schools and workplace
• Safe location
• Public transportation close by
• Reasonably sized backyard
• Open spaces (e.g. parks) nearby
• Quality of accommodation
Student accommodation
When buying in areas with large student populations, consideration should be given to the following attributes:
• Number of bedrooms – students will often live together so multiple, well-sized bedrooms could prove to be attractive
• Proximity to education institutions
• Closeness to restaurants, shopping facilities, nightspots
• Affordability – many students will be living on a tight budget
Inner-city living
Smaller, inner-city apartments are often tenanted by young professionals who enjoy a newly acquired disposable income. Such renters often look for:
• Close proximity to CBD/place of work
• Parking
• Security
• Closeness to restaurants, shopping facilities, nightspots.
As you can see, the return on your investment can very much be maximised if you buy a dwelling that is appropriate for the demographics of an area. A property that appropriately caters to the types of people who wish to live in a specific area should enjoy a consistent level of high quality tenants which should hopefully minimise the time and funds you need to dedicate to the property's management.
Have more questions about your Newcastle investment property? Want to ensure you are maximising your returns? Why not see the difference a dedicated team of property managers makes? For a free copy of our Property Investors Guide or an obligation-free chat, email our Director, Casey Healey, on casey@c21newcastle.com.au or phone 02 4943 6333 today.