Property is undoubtedly one of the most prized assets to own. That's why it's only natural landlords want to ensure its value is upheld. However, it's important to remember this worth isn't based on one single factor alone. Instead, it's the culmination of a few significant components. These include location, vacancy rates, the economy, aesthetics and engaging an exceptional Newcastle based property management team.
Location, location, location
Never underestimate the power of a great location. In Newcastle, we're lucky enough to have everything from world-class beaches, stunning Victorian terraces and even a spectacular international harbour. The vibe is a gloriously 21st century mix of inner-city cool, laid back beach and sophisticated elegance with an enticing array of cafes, restaurants and shops. The best part? They're all just a casual stroll or tram ride away from each other.
The stats certainly don't lie, either. With a vacancy rate sitting at just 1.7%, as per the June 2020 REINSW Vacancy Rates Survey, it highlights that if you can select the right location when buying an investment property, you're only going to increase its value.
Stock supply
Supply and demand will always be a key factor in property valuation. With current vacancy rates so low, it equals great news for landlords. It means little vacancy time between tenants, or new tenants may want to lock in for longer contracts and be willing to pay a few extra dollars for the home they want.
Currently, stock levels are stable at Century 21 Newcastle. We only have one property for lease with a 0% vacancy rate as at today. The average rent for a Newcastle property, according to property portal realestate.com.au, sits at $550 per week, and there are 376 visits per property compared to 1076 in NSW.
The economy
Not surprisingly, the economy will undoubtedly impact the value of all properties (for better or for worse).
A strong economy means people have jobs and not only can they pay their rent, but they can also pay what you want to charge. However, while people will always need somewhere to live, an economic downturn can drive rental prices downward and vacancy rates up. What we do know is 51.3% of local residents are renters, so the chances are if you purchase an investment property in this suburb, you have a high probability of securing tenants swiftly. If you're not sure what your investment would yield in rental return, our team of experienced Newcastle property managers can assist – simply click here.
Its what's on the inside which counts
Waking to the sound of waves crashing, or the delicious aroma of freshly brewed coffee from the coffee shop across the street is one thing. But having the place a tenant can really call home is quite another.
Whether your tenant wants a clean, airy spare room to work from home, a modern kitchen to play MasterChef in, or a cute balcony to make them the Insta envy of their friends, aesthetics really do matter. The better quality they are, the higher in value your Newcastle property will be.
Property management gold
While we can't control the economy or the current state of the global property market, what we can offer is friendly, experienced and professional advice about your rental property (and where to buy the best coffee – hint: Darby Street!). Our highly qualified Newcastle property managers are simply the best at what they do. That's why we have been finalists in the Australia-wide REB Business Awards and the State run REINSW Awards for Property Management Team of the Year. We also have an average days on market of under 10 - far less compared to our competitors.
Would you like to experience the difference a dedicated Newcastle property manager can make in maintaining the value of your investment property? We're ready when you are! Contact us today on casey.novocastrian@century21.com.au or 02 4928 7400 or check out our Google reviews today.