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b"https://www.youtube.com/watch?v=XduzJWKv_Fs\\n\\n\\n\\n\\n\\n\\n\\n\\nDo you need a rental guarantee when investing in property? Why can a rental guarantee actually be a really bad sign and what can you do to make sure your investment property is going to be rented?\\n\\n\\n\\n0:00 - Introduction0:38 - Always look a rental vacancy rates - https://onproperty.com.au/vacancy1:19 - Why a rental guarantee is generally a red flag2:32 - What you should do when you see a rental guarantee\\n\\n\\n\\nTranscription:\\n\\n\\n\\nRyan 0:00here i am today in brisbane about 12 kilometres from the cbd inspecting another property with granny flat potential as you can see room in the backyard there potentially for a granny flat so this is a really interesting one with already has car accommodation off to the side for a granny flat so all you need to do is add in a path which is what we absolutely love but in today's episode i want to talk about whether or not you need rental guarantees when investing in property and why if you see a property with a rental guarantee you should actually be really wary of that property and that should raise a massive red flag with you so when investing in property a really important thing to look at is the rental vacancy rate of an area this is really easy to find if you go to onproperty com au forward slash vacancy that will actually redirect you through to sqn researchers page where you can search the vacancy rates are different postcodes so you can find out how many properties are vacant in an area you can find out what percentage of the market is vacant myself as well as the team over pumped on property like to use 2% as a benchmark so you want a vacancy rate that is going to be under 2% which indicates that an area is chronically oversupplied so obviously a lot of people get really nervous when investing in property is my property going to be rented so they want to go with something that has a rental guarantee or there's a big illuma when there is a rental guarantee but i want to talk about why this can be a fool's errand and why this can be a red flag there's two general generally two types of properties you see with a rental guarantee the first one is defense housing australia so defense housing australia obviously can offer full rental guarantee basically the government will pay for your property to be rented the downside of defense housing australia is that sometimes the rental yields may not be up to market rate and also the property manager fees can be quite high on that compared to what you would generally find in the market the second and what i consider i guess the more risky rental guarantee is when you see it on a new build property or a house and land package property so when you're seeing one of them advertised and they're saying rental guarantee of 7% rental yield or however much per week they're the ones where you really want to double check your figures massively because that can be a red flag because if someone's selling you a development project with a rental guarantee that money has to come from somewhere they're not doing it out of the goodness of their heart and generally that money comes from the sales price so it comes from you actually purchasing the property so when you see those rental guarantees what you should be doing is a looking at the vacancy rates in the area which we've already talked about but be looking at comparable properties in the area so go on to realestate.com.au and look for properties for rent in the area and try and find a property similar to what the property would be once it's been built and see what they're listed for on realestate.com.au and what they're actually renting for because what you'll often find is that the rental guarantees that are provided are significantly higher than what you would actually get at current market rate so there might be a rental guarantee for one year or two years but after which that your rental income will drop significantly to what the actual market rate is and then i..."