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What type of property can give you bigger rental increases for years to come ?

Discussion in 'General Property Chat' started by Kangaroo, 4th Feb, 2016.

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  1. Kangaroo

    Kangaroo Well-Known Member

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    Hi, All,
    I am interested in finding a property which can gives me years of good rental increase(percentage wise) for years to come. I am not talking about capital gain here.

    One way is doing reno/duplexing/granny flat/. but it is one off big increase. Any type of property/location/style can give you rental increase percentage wise in a bigger way, rather than just CPI ?
     
  2. pinkboy

    pinkboy Well-Known Member Premium Member

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    CIP with fixed annual rent increases. All outgoings paid by the tenant. True net lease.

    pinkboy
     
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  3. Kangaroo

    Kangaroo Well-Known Member

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    How about RIP ?
     
  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    Rental prices are a function of supply and demand. For them to increase over time, there has to be demand in the area - ie people wanting to move to it. Close to employment or lifestyle facilities obviously helps the demand side, good OO:tenant ratio keeps the supply down.

    Its also useful going with a PM who is active in the market themselves so they can keep on top of rent levels.
     
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  5. Kangaroo

    Kangaroo Well-Known Member

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    Thanks DT.

    What happens if deveopers love the good things as well ?
    The problem is that the big developers will ultimately kill the rental growth because finally supply will catch up and lead to years of rental stagnation.

    Is there anything which still possess the traits you mentioned but is not good or big enough for developer or spruiker to put effort on ?

    In another word ? what are the things big or small deveopers hate or worry about before even starting the project ?
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    Some of the inner city areas here have no developers because the councils rules are prohibitive.

    This creates demand for both buyers and tenants because they want to get into those areas and supply isn't increasing much.
     
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  7. Kangaroo

    Kangaroo Well-Known Member

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    Excellent point ! How to locate these spots ?