Noosa is one of the regions in Queensland with a fast-growing property market. According to a report by Queensland Property Investor, this resort town has established its status as one of Australia’s most sought-after real estate markets, with apartments having the third-highest capital growth rate since 2018. That is why a lot of people come to this place to grow their wealth through property investment.
Now, amongst the investment vehicles that have been gaining popularity in Noosa are permanent rentals. These are assets that investors hold on to for the long term to get the returns they expect.
What Are Permanent Rentals
The term “permanent rental” was coined to describe rental properties that you can buy and rent out to guests and tenants for a long term. To acquire these properties, you are allowed to pay more for the upfront cost to lower the interest rates and, thus, the lifetime cost associated with your loan. In a way, you would be buying down the interest rate with this type of investment.
Permanent rentals come in various types, from standalone homes to fully furnished apartments. So, there is always a viable option that you can add to your existing list of properties.
How to Invest in Permanent Rental Properties in Noosa
Investing in permanent rentals in Noosa is a lucrative way to build equity and wealth for the future. It could even be a move that will give you the financial freedom you are longing for. However, like any form of investment, it also comes with challenges.
With that said, you should arm yourself with the right information to start on the right foot.
Choosing the Ideal Property
To ensure you will get the returns you are looking for, you need to be certain that you are picking the right property. Here are steps that you should take:
- Choose a good location – The property should be situated in a place that sees a consistent number of renters and tourists. This way, you will have a low vacancy rate throughout the year.
- Find one with a positive cash flow – This means that you should look for a property that yields rental income that is higher than the cost of managing it.
- Do a property inspection – Never purchase a property without inspecting it first. This ensures you are getting one that is still in good shape, and you can avoid the costs of repairs before opening it up for occupancy.
Determining How to Finance Your Purchase
Once you have a shortlist of the ideal apartment and house rentals Noosa has to offer, you can then decide how you make your purchase.
In this regard, you have three options. First, you can use a mortgage broker and take out a home loan. Second, you can use the equity of an existing property that you have. Lastly, you can, of course, opt to buy the property in cash.
The strategy that you should choose should depend on your current financial situation. If you have the right plan in place, you should be ready to buy.
Seeking Help from Agents
While some people avoid working with real estate agents for some reason, it actually makes the entire task of buying Noosaville rentals a lot easier. As they know the market like the back of their hand, they can point you to the best properties that suit your needs. Aside from that, they would do all the legwork for you, so you will have more time for other important things in your life.
However, you must remember that not all agents are created equal. When hiring the one to help you out, look into the most important qualities that such a professional should have, such as:
- In-depth knowledge of the local property market
- Exceptional negotiation skills
- Professional network membership
- Ability to offer valuable price guidance
- Access to off-market listings
Using a Property Manager
Of course, you can choose to manage your new rental property on your own. This way, you can avoid paying someone else to do it for you.
However, to be able to do it efficiently, you have to be well-versed with running such type of investment property. You also have to be knowledgeable of the legal side of things, such as tenancy law, taxation, etc. Most importantly, you need to allocate more time to be fully hands-on in management.
So, it would be best to just let a property manager handle the task of running your rental property for you. Not only that they can save you a great deal of time and effort associated with managing a rental property, but they can also help you find suitable tenants faster, make rational decisions, and boost profitability by studying market trends to increase rent.
Final Thoughts
As with any form of investment, permanent rentals will not give you a large paycheque right away. And, making a wrong move could be bad for your bottom line. So, be realistic in your expectations, do your due diligence in finding the right property to invest in, and be patient. Sooner or later, you will enjoy that financial freedom you have been looking for!
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