This blog is written to give you an insight of why median-priced properties might be a safer investment? So, let’s just keep yourself attentive and see how, you as an investor, can maximize your rental returns.
The methodology of achieving the best long term rental returns from the property is not a rocket-science anymore, but, it’s just about investing in the right property that has potential to grow and develop.
The only thing which is required to be focused is just invest in the blue chip, median priced properties in inner urban locations and to ensure the rental income and capital gains hold onto them in the certain time frame.
It’s a kind of a proven strategy that has been working effectively for more than two decades and has helped a lot of the property investors to assure their rental returns regardless of the market situation.
So, if you are striving hard to make a good rental income from your properties, make sure that you consider investing in blue chip properties in the inner suburbs. Regardless of the finer details of your investment strategy, it makes a complete sense of ensuring your rental income.
Why investing in Blue Chip Properties In the Inner Suburbs is a good idea?
The reason behind this strategy of buying blue chip properties in the inner suburbs, works is the urge of working professionals who wilfully look for the place to live in inner suburbs that are close to their work. Moreover, one more reason that makes them shift to the blue chip suburbs is that it offers the immense facilities such as- shops, restaurants, parks, cafes, lakes or beaches.
See, how can you help in attracting more renters?
There are approx 80% of renters for them the properties within the median price range of 10-20% are affordable, so there would be consistent yields to avail. Moreover, if you are looking ahead to sell your property then there won’t be any issue because this property is affordable for the majority of buyers; it means that you would be virtually guaranteed to sell your property very quickly at a good price, whenever the need arises.
However, if you are someone looking to achieve the fragmentary rental returns, then this property may not seem to be ideal for you because some investors are lured by the prospective for the elevated capital growth that could be pulled off through high priced properties. Because, they have the rental income of subordinate proportional that could remain vacant in the slower property markets. So it would be a great idea to invest in median priced properties.
So, let’s just check out some tips for finding the properties that could provide a good long term returns:
Surf the reputable avenues such as- Australian, Property Monitors, RP Data and Residex to research the median prices.
Areas that are 5-15km away from the CBDs apparently have the inadequate supply of lending and other plentiful demands. In this area, available properties usually perform better than the outer suburbs.
Since buyers and tenants both tend to seek a lifestyle, make sure that the property is having the nearby leisure areas such as parks, cafes, restaurants, beaches etc.
Keep an idea of what type of property is favoured by the majority– house or unit, one or two better– at the median price in the area.
Make sure that you buy property in the area that you know well. If you have the knowledge about the location, it will give you a competitive edge over other buyers and also ensure that you don’t buy property in the street or suburbs that are worst performing.