How the Location of Your Investment Property May Affect the Tenants You Attract

melbourne houses

Youโ€™ve decided that the timeโ€™s right to purchase an investment property and youโ€™re keen to get the ball rolling immediately. Thatโ€™s fabulous, however, a great deal of research and thought should be undertaken prior to this to ensure your investment works for you in the manner you intend it to.

One of the key things you need to consider is what kind of tenant you want to attract, and something that will have a great bearing on this is the location of your property.

This refers not only to the location of the suburb itself but also to the position of your property in relation to key amenities. Things that are important to tenants may include proximity to shopping precincts, public transport and freeways, schools and other educational facilities, as well as parkland and open green spaces.

Properties within โ€œDesignated Neighbourhood Zonesโ€

What does this actually mean? There are some public primary and secondary schools that can only be attended by those who live within a certain boundary or zone. If you own an investment property within these areas, there is a high chance that it may be tenanted by a family with school-age children, potentially making them great long-term renters. Some of the most sought-after secondary schools in the eastern suburbs with strict zoning include Camberwell. Balwyn, Vermont, Ringwood, Box Hill, Mount Waverley, Glen Waverley and East Doncaster. Something to consider however is that if youโ€™re looking to purchase in these areas, you may be paying a premium price to do so.

Inner city investments

The type of property you purchase within the inner city may dictate the tenants you attract. An apartment will potentially appeal to students who attend a nearby university; it may also be attractive to young professionals who want to be close to work and the lifestyle on offer in the CBD, but donโ€™t want the maintenance of a yard. If itโ€™s a home with multiple bedrooms and living areas it may be attractive to a group of friends wanting to live together. A consideration here, however, should be that if there are a number of different people on the lease, it can be hard to keep track of people moving in and out of the property, and rooms may be sub-let by one of the lease holders. This effectively dilutes the control you have over who lives in the property and may put it at risk. If this is the case, ensure that your rental agency is doing regular inspections and taking a lot of photos, and where at all possible, attend the inspections with them for peace of mind.

Suburban investments

Again, the type of property will dictate who applies for it, but itโ€™s definitely more likely that youโ€™ll attract a family in a suburban location than in an inner city one, especially if your home is generously accommodated, has a decent yard, or alternatively is close to parks or reserves. Apartment living is also becoming more prevalent in the suburbs and may be appealing to younger people moving out of home for the first time; it may also attract single parents with smaller families.

Presentation of your home

No matter where the property is located, a home that is well maintained and presented will generally attract a better quality of tenant. If you advertise a property that looks like the worst house on the street, what sort of tenant are you likely to attract? You want your property to reflect the kind of tenant you want to apply for your home, and someone who aims to maintain it to the same level they take it over in. If it looks like you donโ€™t care, they may not care either.

Once you have decided who your target tenant is, start searching and keep this front of mind. When inspecting a property, put yourself in the shoes of the prospective occupants; do you think the home will meet their criteria, and will the location and its amenities service their needs? If the answer is yes, then take the next steps to make it yours. And if the answer is no, keep hunting; what youโ€™re looking for is out there somewhere, it may just be a matter of time.

Share:

More Posts

How to Choose the Right Real Estate Agent: 5 Questions to Ask

How to Choose the Right Real Estate Agent: 5 Questions to Ask Before Hiring a Real Estate Agent When buying or selling a home, finding the right real estate agent is one of the most important decisions you’ll make. The agent you choose can influence everything from the price you pay for your new home to how quickly your property

Maximising Tax Benefits On Your Investment Property

Maximising Tax Benefits On Your Investment Property Why a Depreciation Schedule Should Be Included in Every Property Investorโ€™s Annual Tax Return An important part of annual preparation for property investors includes re-visiting finances and finding ways to improve cash flow. Claiming property depreciation deductions on your investment property may be the answer. Property depreciation is the natural wear and tear

Meet Our November CSP Grant Winner

Meet Our October CSP Grant Winner Congratulations to our November CSP Grant Recipient –ย  Social Butterfly Community Connections. Established in 2018 to enhance the level of services provided in the disability services area in the eastern suburbs of Melbourne, Social Butterfly Connections has a strong focus on fostering vibrant social groups centred around fun, passion, kindness, and community. One of

Protect Yourself from Real Estate Scams: What You Need to Know

Protect Yourself from Real Estate Scams: What You Need to Know In todayโ€™s digital age, real estate transactions have become more susceptible to various scams. As a trusted real estate firm, we believe itโ€™s crucial to educate our clients about the latest fraud tactics to ensure your investments remain safe. Here are some common scams currently making the rounds and

Send Us A Message

Good Job!

Thanks for taking the time to let me know about your needs.

I look forward to helping you find your new home.โ€‹

Buyer Requirements

Thank you!

Iโ€™ll be in touch soon with information on the suburb youโ€™re buying in.

Find Out More