First Time Investors – Weekly Rent & Property Value

One of the underlying factors in determining value of property in areas favoured by investors in the weekly rent a property delivers.

Properties that deliver high levels of weekly rent relative to the purchase price tend to attract more investors than properties that deliver low returns. With interest rate rising, rental returns will become increasingly important, as higher interest rates mean higher mortgage repayments.

First time investors have the challenge to select rental properties that will deliver both high rental returns and high capital growth. When considering potential properties to purchase, one should look at whether the property has appeal to potential renters.

Rental returns will become increasingly important this year as rising interest rates mean higher mortgage repayments.

Check newspapers and the internet to see how many properties are available for rent in the area in which you want to buy. It is also worth comparing these figures with surrounding areas.

Checking newspapers and the internet will allow investors to find properties that are available for rent in areas you are considering to buy in. It will also help make an accurate market evaluation of the rental returns.

First-time investors can also check with REIWA to determine the capital growth rates for properties in the area in the past 10 years.

Read more: http://evergreen.sobox.com.au/2010/09/20/first-time-investors-weekly-rent-property-value/