If you’re looking to buy an investment property, it’s important to consider a suburb’s rental ‘vacancy rate’, which is the percentage of properties that are currently available to be rented.
A vacancy rate of 3% is considered equal between investors and tenants, so buying where it’s below 3% will mean more competition between renters for your property.
If the rate’s higher than 3%, you may be risking long, costly periods with no tenants and no rental income.
But even if a suburb has a low vacancy rate now, you should think about the future.
There might be a lot of development projects under construction, which will mean more properties for yours to compete with once they’re completed.
And remember, data is useful, but never 100% reliable. You should also call local property managers to see how many of the properties they manage are vacant and what the local demand is like.