For a real estate investor, knowing how to find a positively geared property for sale can be the key to making money in real estate and getting a great return on investment.
Luckily, there are tips a real estate investor can follow to find this type of investment property anywhere in the real estate market. Once you’ve read our guide “What Is a Positively Geared Property and How Can a Real Estate Investor Find One?”, you’ll be one step closer to being able to find a positively geared property for sale.
Still, real estate investors can narrow down the location of where to find a positively geared property for sale. What are the locations that are more likely to have positively geared property for sale? What kind of investment properties in the real estate market can easily become a positively geared investment property? Answers to these questions will help a real estate investor know exactly where to look for positively geared property for sale in the real estate market.
Where to Find Positively Geared Property for Sale: The Location
Rural Town Centers
Real estate investors can find two general real estate market trends with residential real estate in rural towns:
- The price of rental properties is low compared to that of urban areas.
- Rent prices for rental properties are high.
This makes rural town centers an ideal location for where to find a positively geared property for sale. A positively geared investment property comes about through high rent prices (high rental income) after all investment property expenses are paid. With low investment property prices and high rent prices, homes for sale will more likely be positively geared.
To ensure you find the best positively geared property for sale, the rural town where you look for homes for sale shouldn’t be too small. As when looking for the perfect location for any investment property, real estate investors should study the economy of the location. Make sure it depends on a few booming industries rather than one to increase the likelihood of job and population growth. These factors in a location mean higher demand for rental properties. This increases the investment property market value and the rent prices of a positively geared property for sale in the location.
Major City Centers
While rural town centers are a great option for where to find a positively geared property for sale, major city centers can also be a good location to look for homes for sale. While rental properties in this location can be expensive, they can also bring high rental income. This is because a positively geared investment property will be in high demand (meaning high occupancy rates) in this location, allowing a real estate investor to charge higher rent prices.
In this location, however, real estate investors should be looking for a specific type of positively geared property for sale. Studio apartments and one bedroom units will be a real estate investors best bet when investing in major city centers. These rental properties tend to bring higher rental income than apartments with multiple bedrooms, making them a positively geared property for sale.
Where to Find Positively Geared Property for Sale: The Type of Investment Property
Block of Townhomes for Rent
If real estate investors want to find a positively geared property for sale, they should consider a block of townhomes for rent that doesn’t have a strata title. While many townhomes for rent have a strata title, those that do not will make the best positively geared property for sale.
A strata title of townhomes for rent allows each individual townhome to be owned and sold. Without a strata title, a real estate investor can own the entire block of townhomes for rent. This becomes a positively geared property for sale because a real estate investor won’t have to pay strata title fees. These fees can be very high, cutting into the return on investment. This keeps townhomes for rent with a strata title from being a positively geared investment property.
Investing in a block of townhomes for rent without a strata title is also a way for real estate investors to take on less risk. If one investment property unit is vacant, rental income will still be secured from the other housing units.
A Fixer Upper Investment Property
A positively geared property for sale should not only bring in a high rental income through rent prices, but it should also be purchased at a good price. A fixer upper investment property is treasured by real estate investors because it can be purchased for much lower than its market value. This increases the return on investment, as long as the repairs amount to a reasonable price. A real estate investor can renovate a fixer upper investment property, increasing its market value. With increased market value comes higher rent prices and high rental income.
If you choose to go after a fixer upper investment property when looking for a positively geared property for sale, read these guides to help you in your residential real estate investing venture:
- Thinking of Investing in a Fixer Upper? Answer These Questions First!
- 8 Signs a Fixer Upper Investment Property Is Not a Safe Investment
- What to Look for During the Home Inspection of a Fixer Upper
Commercial Real Estate Property
Commercial real estate can be positively geared property for sale as it generally brings in high rental income. If you’re a residential real estate investor, commercial real estate can be a great alternative to investing in homes for sale. This kind of investment property is different from residential real estate in many ways. Mortgage lenders handle commercial real estate differently; there are different rental property management and different lease agreements for tenants. It is advised that residential real estate investors looking to expand to commercial real estate for the first time start small and consider turning to real estate experts for guidance.
An Investment Property with Potential of Dual Occupancy
A positively geared property for sale can be found in more popular cities if real estate investors consider dual occupancy. Dual occupancy is taking an investment property that would otherwise house one family and dividing it to house multiple tenants. For example, a single family home with four bedrooms could be used as a dual occupancy rental property (divided into two spaces with two bedrooms each). This naturally brings more rental income.
Make sure to check with local authorities for regulations on converting homes for sale into dual occupancy rental properties. This research will help a real estate investor narrow down the locations even further when looking for a positively geared property for sale.
Find Positively Geared Property for Sale with Mashvisor
If you want to start making money in real estate sooner and limit the time of research that goes into finding a positively geared investment property, use Mashvisor. Mashvisor provides data on rental income, rent prices, and median prices for a location. This will help you narrow down locations for where to find positively geared property for sale. Once you have a location, enter your mortgage information into Mashvisor’s investment property calculator and find an investment property that will be positively geared. It’s that simple. In this way, search for locations and types of investment properties that are likely to be positively geared is done all in one place: Mashvisor.com.
Making money in real estate is most easily done through a positively geared investment property. Real estate sellers don’t label or advertise a positively geared property for sale as such. So, a determined real estate investor has to hunt through plenty of homes for sale to find one. Know where to look in the real estate market for the locations and rental properties that are more likely to be a positively geared property for sale.
Meanwhile, keep reading on Mashvisor for the best real estate investing advice.