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  • Darlinghurst Suburb Guide | Real Estate Blog – Niche Portfolio
    Wednesday, October 15, 2014
    Highlights of Darlinghurst Darlinghurst is an inner city suburb of Sydney.  Close to Sydney’s Central Business District, it is one of the m...
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  • Paddington Suburb Guide | Real Estate Blog – Niche Portfolio
    Thursday, September 25, 2014
    Paddington, Sydney living: the highlights  The sought-after suburb of Paddington, nicknamed “Paddo”, is located a mere 3km from the S...
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  • Bondi Beach Guide | Real Estate Blog – Niche Portfolio
    Wednesday, July 02, 2014
    Highlights of Sydney’s Bondi Beach Sydney’s Bondi Beach is located on Sydney’s Eastern Suburbs and it’s the most famous beach ...
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  • Top 5 renovation tips that will increase the value of your property | Real Estate Blog – Niche Portfolio
    Thursday, June 12, 2014
    The competitive Australian property market can seem like a jungle - everyone is looking for the best way to add value to their home without breaking t...
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  • DIY tips to prepare your house for sale | Real Estate Blog – Niche Portfolio
    Monday, June 02, 2014
    Do you want your home to stand out from your competitors?  If you are serious about putting up your home for sale, it is vitally important that y...
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  • Rental home hunting? Follow these 5 simple tips for a smooth transition | Real Estate Blog – Niche Portfolio
    Wednesday, May 14, 2014
    The rental property market is highly competitive at the moment, especially as more and more people are choosing to rent rather than to buy.  Look...
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  • Escape into your own private oasis | Real Estate Blog – Niche Portfolio
    Wednesday, April 30, 2014
    With all the chaos of our modern world, we all need a private haven to escape to. Nature has provided us with one of the most decadent luxuries the hu...
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  • Property prices on the rise with Sydney’s property boom | Real Estate Blog – Niche Portfolio
    Monday, March 17, 2014
    With interest rates at a record low, and high demand for limited housing stock, Sydney’s property market is set to see an increase in property d...
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  • Top Tips for Buying a Rental Property | Real Estate Blog – Niche Portfolio
    Friday, February 28, 2014
    Buying a rental property can be a very financially rewarding decision. However there’s no denying that it involves a lot of research beforehand....
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  • Sydney property and property investment news | Real Estate Blog – Niche Portfolio
    Monday, January 20, 2014
    The increase is the biggest jump seen since late August 2010, and follows a series of country-wide falls in property values in the two preceding years...
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Top Tips for Buying a Rental Property | Real Estate Blog – Niche Portfolio

Friday, February 28, 2014

Buying a rental property can be a very financially rewarding decision. However there’s no denying that it involves a lot of research beforehand. Here are the top things to consider before investing in a rental property.

1. Location is Everything

It definitely pays to take the time to personally inspect the neighbourhood. Is it close to potential employers, parks and schools? Are there sufficient lifestyle amenities nearby like shops, restaurants and cafes? Is it within about ten minutes walking distance to public transport, but not right on top of a train station? Is it within about 12kms from a CBD? All these factors are what tenants look for when searching for a rental property and a quality neighbourhood is integral for keeping good tenants. Additionally, if you plan to manage the property yourself, it will make things easier if the property is close to your own home. 

2. Research Going Rents

Conduct some research with local independent real estate agents, property managers and other renters in the area into how much the going rate is for renting different kinds of properties. This will give you insight into how much you can realistically expect to charge for rent. Also do some research with the local council’s town planning departments into what is going on in the area. Is the street going to be over-run with units in three years’ time? Is there a shopping centre planned for building across the road? The more you know the better. You can even go to the extent of researching the history of the rentals you have in mind. Property records are easily obtained from the city hall or county courthouse.

3. Personal Finances and Insurance – Get These Sorted

You should never make the decision to purchase a rental property unless you have a healthy emergency fund. It’s a good idea to sit down with a mortgage lender or broker and work out whether you have enough to make the investment before you start spending your precious time on searching for properties. Get pre-approved for an investment loan and then be sure to organize plenty of liability insurance once you’ve made your investment, to protect yourself in the event that someone hurts themselves whilst living in or visiting your property. 

4. Calculate the Costs

Free property investment calculators are available online for you to utilize to calculate the property’s fair market value to ensure you don’t get ripped off by the seller. You’ll also need to have in mind the maintenance costs of the property. Determine how much the maintenance expenses will be, which will enable you to determine how much you’re expected to spend in one year to manage your investments. This way, you’ll be able to check if the profits you gain from your rental property cover all the maintenance costs while still leaving a nice profit. After all, return on investment is always the priority.