Investing in real estate is always a good idea even if the market fluctuates every now and then. You can make good money out of your properties; for example, offer office space for rent situated in a bustling city or perhaps a lovely looking home in the suburbs. The rent rates would vary depending on several factors, such as location and amenities, just to name a few. The average home price in Queensland is at $490,000, while commercial properties are also getting a good deal primarily with the high demand for spaces for rent or lease.
How to Value a Rental Property
Renting a property is a sure-fire way to earn passive income and get the most out of your unit. Setting the right rental price can be a challenge, especially when you do not know much about the matter in the first place. Well, here’s a quick guide on how you can accurately place a rental value on your property:
- Find out the current worth of your property in the market. Keep in mind that the amount can be different from the original amount that you paid for since the real estate market can change from time to time. You can get such information online, or you can hire a property appraiser to give you an accurate assessment.
- Research on rental rates in your area and then assign a relative value on your property. Look out for comparables in the same area and also assess the amenities or features of your rental property.
Factors Affecting the Value of Rental Property
This is by far the most important factor that can influence the value of any property. As they say, location is the key, which means that you cannot set a higher rental rate in areas where there is little to no foot traffic.
2. Amenities or Features
If your rental property has many amenities included, then you have the advantage to set a higher rental rate provided that these amenities are not considered very common in most locations.
3. Overall Condition
A well-maintained property can fetch for a good price compared to a unit that has seen better days.
Putting a good price that benefits both you and your future tenants or buyers is what makes real estate. And knowing the full potential of your property not just allows you know what you can do with your property, but it also gives you a better idea of whether or not you should sell it or put it up for rent.
Know the true value of your home with Karalis Real Estate, where dedicated professionals strive to help you become a real estate entrepreneur! Give us a call at +61 7 3343 8000 or visit us at 2/1389 Logan Rd, Mount Gravatt QLD 4122, Australia.