Regardless of if you are an investor or homeowner there are two keys statistics that you should check before investing in a property in a particular suburb, these are:
Rental Percentages (less than 30%):
- Check that the percentage of rentals around you is less than 30% because you want to be surrounded by homeowners who have control over their properties and take pride in them, People enjoy having control over their lives and owning their own home gives them a lot of security and investment in the community. They will also have kids who will want to live nearby so property values in the area are more likely to go up.
Vacancy Rates Below 3%
- Vacancy rates below 3% are a good indication that it is a sought after location that people enjoy living in, it also means there are less likely to be empty buildings that are inhabited by people doing drugs. If you are an investor, it also means it is more likely you will be able to rent a house out in that area because there is a small supply.
Tight Market (0-2.5%):
- This indicates strong demand and limited supply, making it harder to find rentals and potentially pushing up prices.
Healthy Market (2.6-3.5%):
- This is considered a balanced market, where there's a good balance between supply and demand.
Weak Market (3.6% and above):
- A higher vacancy rate might suggest a more relaxed market, but it could also be a sign of oversupply or other factors affecting demand.
How to find the Rental Percentage and Vacancy Rates in a suburb?
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Go to the ABS website, this is the government website that has the data from the last Census in it, it is the most accurate information you can get. Here is a link to the website. Type in the suburb and click on the "suburb" under "Suburbs and Localities":
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Select "All Persons":
- Search for "Dwelling Count" or scroll down to it, check unoccupied private dwellings. The rate 5.6% below is quite high and may indicate that it would be difficult to rent in this area.
- Search for "Tenure Type" and check under Rented to check what the rental percentage is. The rental percentage of 24.9% is under 30% which is good and indicative that most people in the suburb own their own home and are invested in it.
