4 tips to make the most of current market conditions

“The right property manager should be actively involved in getting you good tenants,” he said, “and completing all the necessary inspections of the property.”

2. Make an inspection
Mr Jovcevski says before “signing on the dotted line” it’s best to physically see the property.

“A photograph can only tell so much,” he says.

“Not only will you be able to fully inspect the property for costly structural damage but you’ll also have the opportunity to get a better understanding of the location and the amenities nearby.”

3. Have contingency plans
Mr Jovcevski advises having a long-term strategy in place to address unexpected challenges.

“Like interest rate rises or shouldering the mortgage and maintenance costs in the time between tenants.”

4. Don’t lose sight of the other fundamentals
Rental vacancy rates are a big factor you should look into when purchasing an investment property, Mr Jovcevski says, but you should also pay close attention to the other metrics.

“Such as demand, rental yield and capital growth prospects,” he says.

“Location is also critical, so make sure you’re familiar with the local infrastructure including any transport links.”

Based on SQM Research vacancy rates data, financial comparison site Mozo.com.au has found five capital cities are now undersupplied after vacancy rates there fell below the equilibrium point of around 2.2 per cent.

At just 0.5 per cent, Hobart has the lowest vacancy rate in the country.

Perth has the highest at five per cent - eight times more than it was in 2012.

The commodities downturn has seen Darwin and Brisbane’s vacancy rates blow out by 57 per cent and 16 per cent over the past five years, to 3 per cent and 2.7 per cent respectively.

Sydney, Melbourne and Canberra’s vacancy rates are just 1.7 per cent, 1.9 per cent and 1.1 per cent respectively.