3 key pieces of data landlords need to consider

Investing in real estate involves weighing up all sorts of factors, but there are various areas you’ll need to think about to make sure your decision is the right one.

Rather than being burdened with too many facts and figures, there are some key areas that are well worth your time and attention. We’ve put together a list of some of the information you should take a glance at before taking a closer look at Collingwood real estate.

Asking rents

It’s well worth thinking about what other landlords are asking for in your chosen suburb. This will not only give an idea of the sorts of returns you can expect to make, but also the level of demand for rentals. After all, if rental costs are more expensive, the chances are that there are many tenants going after the same property.

SQM Research recently released asking rents data, which offers a valuable insight into the Melbourne market as a whole. Throughout June, asking rents in the Victorian capital were up 3.1 per cent for houses and 2.2 per cent for units compared to the previous month.

Property prices

You’ll also need to think carefully about how much initial outlay you’ll need for your rental property. Again, this will vary depending on its location and the level of demand from other landlords hoping to invest in Melbourne’s best suburbs.

The Australian Bureau of Statistics regularly releases its Residential Property Price Index (RPPI), which assesses conditions across each of the nation’s capitals. The RPPI was up 0.6 per cent in Melbourne during the March quarter of this year, making it one of the strongest rises in the country.

Demand for rental property

It’s often the case that people go in search of rental property in areas where they can’t afford to buy their own home. While this will keep first-time buyer numbers at bay, it no doubt opens up opportunities for anyone with their eye on investment property.

There was a notable decline in the Housing Industry Association’s Affordability Index during the three months to June this year. According to the group, affordability deteriorated by 3.6 per cent across the nation’s capitals, with Melbourne one of two cities leading the charge.

Nelson Alexander has been helping investors throughout the north of Melbourne for many years. We strive to offer all our clients the highest possible level of service, so why not speak to our team to find out more about how we can make a difference to your investment?