Residential
investment property, residential investment properties,
The definition here of residential
investment property is a property that a tenant will use to live
in, this is as a opposed to commercial investment property which
is property used by the tenant for purposes other than as a home
namely business purposes.
Some investors will only look
at residential investment property and are not interested in commercial
property, this is a good strategy as to be honest for the majority
of what we call mum and dad investors i think staying with residential
real estate makes sense.
The advantages of only considering
residential investment properties is that as a rule because it
is such a huge slow moving market place ( estimates on the number
of residential properties in Australia in 2009 put the figure
at over 10 million dwellings ) this is a huge market place.
Being a such a big market
place it can be argued that the chances of resale value being
subject to volatility are less than with commercial property.
As a rule this is right but
the main advantages of residential investment property over commercial
property are that your chances of having a vacant property are
generally reduced.
please
see also our buying investment properties page.
Residential investment property
As in any instance this will
vary depending on the individual properties but the there is no
real reason why a residential investment property should be vacant
for any extended period of time.
This is not always the case
with commercial investment property see commercial investment
property
If you residential investment
property is vacant for too long you either need to do some work
to make property seem better value to tenants or you have to reduce
the amount of rent you are asking.
This is a good thing about
residential investment property there are always tenants looking
for homes to rent to get yours rented it isn't rocket science
either make the rent fairer or fix the place up and you will find
a tenant quickly.
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Rachael Manners,
Western Australia
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