Real estate buffs use the term \u201cvacancy rate\u201d with knowledgeable flair when talking about rental trends.<\/p>\n
\u201cBut closer analysis reveals that many people do not know how to calculate vacancy rates,\u201d Bellarine Property managing director Christian Bartley said. \u201cIn fact, many people don\u2019t even know what information the percentages actually convey.\u201d<\/p>\n
According to Mr Bartley, there is a very simple formula for working out the level of vacancy in your area.<\/p>\n
\u201cThe easiest way is to use a calculator,\u201d Mr Bartley said. \u201cJust enter the total number of properties actually vacant and express it as a percentage of the total number of properties available to rent.<\/p>\n
\u201cIf the figure you arrive at is 2.75 percent or less, you can give your area the thumbs up as far as investment potential is concerned.\u201d<\/p>\n
Mr Bartley said that in practical terms a vacancy rate of 2.75 per cent means investors should allow for their property to be vacant for 10 days every year.<\/p>\n
\u201cThis is considered a reasonable number of days to allow for tenant mobility. However, when vacancy rates rise above 2.75 percent, investors have difficulty locating tenants and downward pressure is placed on rent levels.\u201d<\/p>\n
According to Mr Bartley, the reverse is also true: when vacancy rates fall below 2.75 per cent tenants experience difficulties in finding properties to rent and upward pressure is placed on rents.<\/p>\n
\u201cKnowledge of vacancy factors over a period of time is an important tool in maximising security and minimising risk when purchasing investment property.\u201d<\/p>\n
For more information, phone Christian Bartley on 0410 695 325, email christian@bellarineproperty.com.au or head to the website at bellarineproperty.com.au.<\/p>\n","protected":false},"excerpt":{"rendered":"
Real estate buffs use the term \u201cvacancy rate\u201d with knowledgeable flair when talking about rental trends. \u201cBut closer analysis reveals that many people do not know how to calculate vacancy rates,\u201d Bellarine Property managing director Christian Bartley said. \u201cIn fact, many people don\u2019t even know what information the percentages actually convey.\u201d According to Mr Bartley, […]<\/p>\n