Investors are returning to the property market and their timing couldn’t be better.
Those who buy in spring will be on track to lease out their new investment in summer – just when tenants are stepping up their search for a rental home.
“Buying a property around spring means it will be settled in November or December and this enables investors to receive a greater number of tenancy applications on their property,” explains Brad Teal Rental Department Manager Prue Bryant.
“December, January and February are the busiest months to lease out properties, and with more tenants in the market the rules of supply and demand mean you generally see higher rent values.
Steady rents have buoyed investor confidence of getting a solid return and attracting a good tenant, with forecast population growth further sweetening the prospect.
“Astute investors can buy a good property in a prized area as a long-term investment and secure a reliable and responsible tenant,” Ms Bryant says.
“Also future demand for rental properties is assured by Melbourne’s forecast population growth. People will want to live in certain areas but if they can’t afford to buy in their preferred area, they will be looking for a property to rent instead.”
Latest CoreLogic data shows the popular and trendy Brunswick area commands the highest rents. Brunswick East led the way with a $640 weekly median asking rent in the 12 months to July, up from $570 in 2018.
Brunswick and Brunswick West both had a median asking rent of $620 a week. But Brunswick West’s weekly rent jumped the most from 2018 when it was $570 a week. Brunswick’s was $610 in 2018.
Affordable Melton returned the highest rental yield for investors at 4.3 percent. Craigieburn, Fraser Rise, New Gisborne, Romsey, Sunbury and Woodend returned rental yields ranging from 3.8 per cent to 3.9 per cent.
Ms Bryant says buyers in the market for an investment property should look for a low-maintenance, functional and well- presented home in good condition.
“It needs to be attractive to a tenant and tick all the boxes for them,” Ms Bryant says. “Tenants are very savvy these days. They know the market, they know what they want and they know what properties are worth.”