This data can provide you with insights into potential returns, risks and the overall financial health of the sector:
1. Capital growth:
This is the increase in the value of the property over time. It will differ according to location and type of property. Research historical growth trends in your location to estimate future gains.
2. Rental yield:
This measures the income generated from the property as a percentage of its value. A higher rental yield shows a better return on investment.
3. Vacancy rate:
A high vacancy rate in your desired location could indicate low demand. This may impact your ability to secure new tenants. Low rental vacancy rates suggest strong rental demand.
4. Rental rates:
Look at the average rental rates in the area for your type of property. This helps you set competitive prices, ensuring your property aligns with market demand while still providing you with a decent income.
5. Tax implications:
Understand how to manage taxes around investment properties, including whether you will be negatively geared, the potential capital gains tax if you sell and what applies if you renovate or make additions to the property.
If you'd like to find out more about property investment, let's have a quick chat.