Every single week, PROPERTYOLOGY spends hours upon hours researching the property economics of locations all over Australia in order to uncover the various towns and cities which we feel has the best potential for our investors.
We understand that our clients have lots of other important considerations, too – for example, rental yield, depreciation, holding costs, and gearing, just to name a few. But none of these trump the main objective of growth potential.
When selecting this particular property, we remained focused on our prime objective and we delighted to receive extra cream on top with a better than expected rental return, so we wanted to share the story with others.
The city where this property is located has a population of over 100,000 people and a tight rental market. Most of our clients take us up on our recommendation to work with a particular property manager who is incredibly pro-active; they begin looking for a suitable tenant before settlement is even affected, thereby minimising any potential vacancy period.
In this particular instance, we had a tenant lined up and a 2-year lease signed prior to settlement. The rent for the first year equates to a very healthy 5.14% yield, converting automatically to an even better 5.29% yield for the second year.
Yet another great investment property for this repeat client, Manny!