Property Investment is Still an Incredible Investment, With the Right Data

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Property Investment is Still an Incredible Investment, With the Right Data

 

In recent years we have seen unbelievable growth and equally unbelievable collapses in the cryptocurrency world, happening all in the span of a few years.

 

We have seen all kinds of trends in the stock market as different companies and industries rise and fall. But one trend that has been consistently safe in most cases is property investment in proximity to major cities around the world.

 

It can’t be said that most property investments will be worthwhile. Nonetheless, there have been major crashes in markets tied to particular industries such as the iron ore mining boom in Western Australia drying up in the 2010s. There have also been countless bad investments in off-the-plan apartment buildings in major cities around the world.

 

That being said there’s still plenty of excellent property investments available. There is an abundance of notable rental property management companies around, as well as traditional buyers agents. Making property investment a much less stressful investment than it may have been in the past. 

 

Property managers now have access to more data than ever before. Many are also becoming more involved in the whole buying process, to ensure investors are able to make worthwhile purchases which will be easy to market. The ability to find the right rental property that will be able to attract a continuous long-term tenant is very important.

It has never been easier to get property data for making financial decisions. This includes previous sold prices, rental archives and current Airbnb market value. There are also online home value calculators and estimators that take into account a combination of attributes of the property compared to recent sales nearby. These help investors and purchasers alike make more informed and less emotional property decisions.

 

Across most major cities, suburbs on the outskirts and slightly further out away from major cities tend to provide the best return on investment for rental properties. The reason being is that they tend to be slightly cheaper to purchase, while the rental prices still tend to be profitable. There are of course always going to be exceptions to this.

 

Suburbs with good access to major motorways and public transport are especially desirable to renters, such as young couples. This allows people to live close to the city, but to also have a bit more space in their home. Sometimes smaller, lesser-known suburbs can be a good investment, as other buyers might not be looking into those areas, but renters looking at the distance from the city would gladly live there.

 

A new breed of property investor has also emerged in the past few years, known as the “Airbnb investor”. Many people have made a great deal of market in the short-term rental market. Plenty of people have also lost money by competing in unpopular overcrowded markets.

 

Tactics to find a good investment property for short-term accommodation

You can find great data straight from the booking sites themselves. Before committing to any particular location or area, monitor properties of different sizes across various suburbs. Note the total inventory of properties in that range and how many of them are getting bookings over both peak periods and quieter times of the years.

 

By monitoring activity and learning the supply and demand in an area, you can find the right type of property that will have a low vacancy rate. You can compare the estimated revenue of these short-term rentals to get an idea of whether the short-term model will yield higher returns than a long term rental.

 

Use data to help find the best property investment for your situation. Try to take the emotion out of the process by not being tied to just suburbs near where you live or suburbs that you think are trendy. If you need to buy interstate and use a property manager to get the best return, go for it.

 

Good-luck on your property investment journey!

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