Advice
Best tips for maximizing your rental returns
09/09/2015 09:20 | Source: Realestate
Australian leading investment property expert Chris Gray provides simple but powerful tips to choose safe investments with good rental returns.

Chris Gray is founder and CEO of Empire, which builds property portfolios for other people. He buys around one property per week, providing a unique insight into market conditions and buyer and seller sentiment. He hosts “Your Money Your Call’ talk show each Friday on Sky News Business channel and interview various leaders of property firms. Chris also works as an accountant, mortgage broker and buyers’ agent.

Chris Gray- CEO of Empire Property Portfolios

For investors wondering how to achieve the best long term rental returns from their property, Chris said: “Buy blue chip with median prices in inner urban locations and hold onto them to ensure rental income and capital gains.” This is one of his investment strategies which have shown efficiency for two decades. 

Therefore, if you want to make a good rental income, think of investing in blue chip properties in the central locations. Nowadays, majority of working experts want to live in inner suburbs that are close to their work as well as seek for lifestyle facilities. Blue chip suburbs tend to offer a good balance of cafes, restaurants, shops, beaches, lakes or parks.

Typically, some real estate investors are attracted by the potential for higher capital growth that can be achieved through high priced properties. However, in order to achieve ongoing rental returns, this kind of property may not be the most ideal choice. In fact, they have a lower proportional rental income and can remain vacant in slower property markets. Therefore, it’s best to invest in median priced properties to balance rental income and capital gains.

Chris Gray also shares his top five tips for finding properties that will provide good long-term rental returns as follows:

- Research median prices through reputable sources 

- Areas 5-15km from CBDs are subject to limited supply of land and plenty of demand. Properties in these areas usually perform better than outlaying areas.

- Both home buyers and tenants seek for lifestyle. Make sure that your properties are near popular leisure areas such as cafes, parks, beaches or lakes, parks.

- Find out what type of property most people favour at the median price within the area.

- Buy in an area that you know well because your knowledge in that market is what will give you a competitive edge over other buyers. This also ensures you won’t buy in the worst performing neighborhood.