It’s a mixed bag for dwelling values, with some cities performing well in the past 12 months, while others foundered: Sydney +9.5%; Melbourne +11.1%; Brisbane +5.5%; Adelaide +2.8%; Perth -3.1%; Hobart +6.2%; Darwin -2.9%; and Canberra +4.5%.
While there has been no growth in weekly rents across the combined capital cities over the past 12 months, for most cities there have been retractions: Brisbane -0.7%; Adelaide -0.4%; Darwin -13.3%; and Perth -8.4%. The gross rental yield figures for each city are also telling:
- Do your research
Find out as much as you can from every resource at your disposal (research data on the internet, local property managers, friends) about the area, the local rental market and what types of rentals are in demand.
- Check carefully
Always remember caveat emptor – buyer beware – and do your due diligence. Get pest, building and strata reports checked by professionals.
- Make sure the figures add up
Run the figures and make sure the buy will match your investment goals.
- Cultivate a good team
Establish a trust-worthy local team including a real estate agent, specialist property law solicitor, pest and building inspectors, maintenance contractors and of course a property manager who’ll be able to manage the property for you.