Image: Single home (can be 1 or 2 storeys). Designed and built by Metricon (one of our builders).
A single residential home comprises one structure that houses one family. It sits on its own bundle of land, not associated with other private structures. This kind of property may also be known as “detached,” since they’re not connected to another house.
While there are a lot of property types that a property investor can choose from, investing in a single residential home remains a popular choice. However, investing in a single residential rental property can yield various returns, so it’s important to weigh up a range of different factors before committing to a purchase.
Proper evaluation and a personalised strategy are essential for the long-term success of an investment property portfolio. As with any kind of investment, single residential properties have various pros and cons that need to be considered.
More demand plus high occupancy rates is an easy formula for high rental income.
When it comes to renting a property, most prospective tenants prefer single residential homes. Since this is the most popular type of property to rent, demand in most areas is typically higher.
Another thing to note is that vacancy rates across the country have hit historic lows in recent years. As a result, there is reduced supply coupled with increased demand. This is important for investors since it increases the likelihood that tenants will want to remain in their rental property for as long as possible. Because of this, even higher occupancy rates are expected for single residential homes.
Single residential homes also tend to be cheaper than dual residential properties.
Even when including important factors such as the area, maintenance and age of the property, single residential homes are typically set at lower prices. This is mainly because single residential homes are smaller than dual residential properties.
The lower prices of single residential homes can serve as a great incentive for investors. Since this type of property is more affordable, it’s also often easier to purchase.
Lower prices mean that obtaining a bank loan becomes easier. This is great for all investors, but particularly those who are younger and may have a lower borrowing capacity. Buying single residential homes is a great opportunity for younger investors who want to build a property portfolio.
Even if you plan to only rent out the property for a few years before selling it, investing in a single residential house is a great choice. For one thing, they have great liquidity; they can sell relatively quickly, even in a slow market, because they typically have more prospective buyers at any given time.
Single residential houses also have a high value and they often appreciate faster than other types of properties. Whether you’re counting on rent or appreciation from your investment, single residential homes can do it all.
This information is simply a guide to help you with your research. The type of property you ultimately invest in will still depend on the type of property investor you are.
Here at Positive Income Properties, we source the right property deal based on what will work for our client. We are involved every step of the way, from sourcing to financing, and from settlement to leasing the property. Whether you are a seasoned property investor, a beginner or simply want to buy your first home, we will assist you. We can secure tenancy from the onset of settlement, ensuring a streamlined process. To find out more about how we can assist you, please refer to our 1-3 Year Rental Guarantee.
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