Investing in the property market can feel overwhelming, especially when first starting out.
That’s why looking at the facts and figures, in particular vacancy rates, is a great place to start when embarking on your investment journey.
Vacancy rates will give you the best indication of supply and demand, allowing you to make a knowledgeable and informed decision.
No one wants to ‘wing’ it when investing in the property market – that’s a huge risk!
While purchasing your family home will have certain prerequisites, these are often very different when it comes to an investment property.
A 3% vacancy rate indicates a balanced market.
If the rate in the area you’re looking is over 3%, this will indicate that there is a lot more supply than demand, and not the best place to be purchasing an investment property.
A vacancy rate is under 3%, indicates that there is far more demand than supply, and is a great place to start looking.
It’s always a good idea to look at the vacancy rate in the area you’re looking to invest in, as this will give you a clear indication of the rental yield and longevity.
We’re a little biased, but the vacancy rate in Brisbane is sitting below 1%.
This means it’s a super tight market, and rental prices are trending upwards and have been for the last few months. In fact, in the last 4 months, rental prices have increased by 10% in Brisbane.
When rent increases, this drives up property prices!
Adelaide is another city where the vacancy rate is sitting below 0.5%, indicating that demand is much higher than supply, providing many opportunities for investors.
Looking at the facts and figures will prove beneficial when it comes to investing in the property market, and ensuring you secure a high return on your investment.
To discuss your next investment property, book a discovery call today.