Buying Rental Property

Buying Rental Property: What Type of Property Should You Be Looking At?

When you mention that you are thinking of buying rental property, the image that most probably comes into the mind of your listener is that of a single-family house in the suburbs, or perhaps a unit in a multi-unit complex. But of course, there are many different types of investment property that could be bought as part of your investment strategy.

It all depends on that all-important outcome you are wanting to achieve!

Let’s list the various options you may have when considering buying rental property:

Residential Property

This is definitely the most popular type of real estate that Australian investors buy. A residential property is simply a dwelling that a tenant uses as their principal place of residence.

Residential properties come in several different forms:

  • Single family homes
  • Duplexes (two homes owned by two different parties: the homes share a common wall)
  • Apartments (usually multi-story complexes with many dwellings)
  • Townhouses
  • Units
  • Flats

Commercial Property

A commercial property is leased to a business tenant: a business will operate from the property. Types of commercial properties that may be purchased are:

  • Retail sites (essentially shop fronts, where goods are offered for sale)
  • Offices
  • Industrial sites (where goods are manufactured or assembled)
  • Caravan parks
  • Hotel accommodation

Other Types of Rental Property

There are many other types of commercial property: some other examples are:

  • Rural properties
  • Farm land
  • Self-storage facilities
  • Holiday accommodation
  • Public housing

Each type of property has its own risks and rewards, and of course, not all properties within each type will be the same in terms of helping you achieve your goals. Careful analysis is the key!


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