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Is investing in property a good idea? Generally the answer is yes but find out what you need to know before you take the dive here.

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There are many reasons why property is a good investment. To begin with, it is a tangible asset that you can see and touch. It also has the potential to appreciate in value over time, providing you with a good return on investment.

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Additionally, it can provide you with a steady income stream if you choose to rent it out. And it can offer you a potential place to live that is cheaper than renting an apartment

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The first step to becoming a property investor is to understand what property investment is and how it works. There are many different types of property investment, but the most common in Australia is residential property investment. This is where you purchase a property with the intention of renting it out to tenants.

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The statistics that prove property has been a good investment in Australia over the last 20 years include:

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Property prices have increased by an average of 6.5% per year over the last 20 years.
The average rental yield on investment properties has been around 4% per year over the last 20 years.
The average return on investment for properties held for 10 years or more has been around 12% per year.

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Property prices have increased at a healthy rate, rental yields have been strong and returns on investment have been very attractive.

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What you need to consider before investing

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There are a number of things to consider when becoming a property investor, such as your financial goals, your risk tolerance and your investment strategy. It’s important to do your research and seek professional advice before making any decisions.

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Once you’ve decided that property investment is right for you, the next step is to find the right property. There are a number of factors to consider, such as location, price, rental yield and potential capital growth. It’s important to remember that the property market can be volatile, so you need to be prepared for both good and bad times.

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Once you’ve found the right property, the next step is to secure financing. You can do this through a bank or other financial institution. The loan amount, interest rate and repayment terms will all need to be considered.

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The final step is to find tenants and manage the property. This includes advertising the property, screening tenants, collecting rent, maintaining the property and dealing with any issues that may arise.

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RentBetter makes it easy to do all of these things, all in one place. You can find tenants and manage your property entirely from the convenience of your phone, tablet or computer.

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Check out all our platform features here.

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Our customers on average $2k per annum, per property* so you can say goodbye to expensive property management fees and say hello to more control over your investment property.

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* Total savings over 12 months for residential rental properties. Assumes 12-month average tenancy length, a 2-week leasing fee and $200 listing fee.

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What is rental property yield?

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Rental property yield is a measure of the return on investment for a rental property. The yield is calculated by dividing the annual rental income by the purchase price of the property.

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For example, if a rental property costs $100,000 and generates $10,000 in rental income per year, the yield would be 10%.

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Rental property yield can be a useful metric for investors to compare different properties. However, it is important to remember that yield is only one factor to consider when making an investment decision. Other factors such as the location, condition, and potential for appreciation should also be taken into account.

How do I figure out the capital growth of a property?

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To figure out the capital growth on a property, you will need to find the difference in the property's market value from the time it was purchased to the present day.

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To do this, you will need to research the property's market value at the time of purchase and compare it to the current market value. The difference between the two values is the capital growth.

How do I figure out how to secure financing for my property?

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There are a number of considerations to take into account when deciding which mortgage product to select in Australia. Some of the key factors include:

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The type of property you are looking to purchase (e.g. investment or owner-occupied)
Your financial situation (e.g. income, savings, debts, etc.)
The size of the loan you require
The interest rate on the loan
The loan repayment period
Any fees or charges associated with the loan

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You should speak to a mortgage broker or financial advisor to get more specific advice on which mortgage product would be best suited to your individual circumstances.

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What are the key things to think about when managing your rental property?

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There are a few key things to remember when managing a property in Australia:

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Find high quality tenants – make sure the tenants that you select will pay rent and look after your property.
Keep on top of maintenance and repairs – this will help keep your tenants happy and avoid any costly problems down the line.
Make sure you are compliant with all relevant legislation – there are a lot of laws and regulations surrounding tenancy agreements, so it’s important to make sure you are up to date with everything
Keep good records – this includes keeping track of rent payments, maintenance requests and any other correspondence with your tenants.
Be responsive to your tenants – if there are any issues, make sure you deal with them in a timely and professional manner.
Be proactive – if you can see potential problems on the horizon, try to address them before they become a reality.

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By following these simple tips, you can help ensure that your property management experience in Australia is a positive one.

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If you’re thinking about managing your own property, you should take advantage of all the tools that the RentBetter platform has to offer:

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Advertise on Australia’s leading property sites: RealEstate.com.au, Domain.com.au & Rent.com.au
Manage all enquiries in one place
Receive and sort applications
Conduct digital tenant checks via the National Tenancy Database
Create your lease agreement
View and sign your lease online (you and your tenant)
Select and set up a tenant
Set up and organise bond payments
Conduct digital condition reports (or hire a pro to do it for you)
Collect, manage and provide receipts for rental payments
Track expenses & automate reports (including EOFY)
Instant message your tenant on platform
Extend or end your lease agreement at the click of a button
Store all your important docs in one place
Schedule repairs & maintenance
Organise routine inspections
Receive automatic reminders, payment notifications and prompts – so you don’t have to waste time thinking about it.

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Becoming a Property Investor - What you need to know