What do I need to look for?
You’ll need to do the legwork to ensure you get the best possible return on your investment. As John suggests, it’s all about location, location, location.
Tenants buy into a lifestyle, and that means they’re looking to rent in attractive areas with plenty of public space, parks, good schools, shopping strips and easy access to the city with public transport options or road connections. These priorities will also help you secure a reasonable price if you do sell later.
The great thing about Metricon’s home and land packages is that we’ve done a lot of the heavy lifting for you, locating significant growth areas that should hopefully provide strong rental yields too.
“There’s a general understanding, in the property market, that once you start to charge rents higher than about $600 a week, that’s where it starts to cut out,” John says. “So, let’s say if you own a $1.5 million, three-bedroom inner-city house, that will rent for around $600 a week. Yet you could buy a $600,000 house in an outer suburb that would also rent for $600.”
You can see the potential right there, John suggests. “For a $600,000 outlay, you can get a $600 a week return, as opposed to spending 1.5 million, more than double that amount. The chances of an inner-city suburb continuing to go up when it’s already at that $1.5 million mark, are limited. I prefer to build two houses to rent in an outer suburb that still has plenty of growth potential and spend $1.2 million to make $1200 a week.”
We recommend taking a look at realestate.com.au to research rental returns and vacancy rates. You can also scope out property prices to figure out the best areas with potential for property investors.
Still unsure about beginning your investment journey?
The good news is that you don’t need to be an expert. Invest by Metricon has your back.
We offer a tailor-made service that takes all the worries out of the building for investment process. We’ll help you purchase a home and land package in a prime growth area and handle everything from breaking ground right through to the finishing details. You’ll be left with a rental-ready investment good to go, without the headaches.
Make sure you seek financial advice
While we’ve tried to be as helpful as possible, this article should not be considered professional financial advice. It contains general information only, and you should seek out independent, professional advice on your personal situation before making any financial decisions.
If your financial adviser thinks an investment property is a good idea, based on your current financial situation, then talk to one of Invest by Metricon’s friendly experts today.
If you feel ready to start your property investment journey, learn more about Invest by Metricon today. Invest by Metricon offers an end-to-end process that allows you to obtain a rent-ready, premium home in one of Australia’s leading estates, simplifying your investment journey. With new build investment opportunities across Victoria and Queensland, you're sure to find something that suits your investment strategy, no matter where you live.