Factors That Affect Rental Yield

Rental yield is key when sourcing a property in a quality area for the long game.

A location must offer a great capital growth potential. But be mindful of your out of pocket expenses. Plan for this up front so you don’t struggle with the interest repayment and running costs.

If the demand for rental property in the area goes up, so does demand and you can push up your rent and  your yield goes up too. 

You have an opportunity! So if you buy a property in an in demand area when you move out you want renters to trip over themselves to rent from you.

Interestingly if the value of the property increases, your rental yield decreases.

A rise in value means your property is in a growth location. That means increased demand.But is it just part of the cycle.

If demand goes up, that’s great news for your rental yield. However, other investors will notice this increase in demand too. They start buying in the area, which pushes the property prices up.

And this is where the opportunity lies for you… 

But keep an eye on the numbers.

Factors That Affect Rental Yield

And keep on top of rental reviews and opportunities to increase your rent. But there is something that is even more important than rental yield!

Feel free to book a time to talk with one of our mortgage broker experts https://investorschoice.com.au/bookatime