Investing in property can involve significant financial commitment and also requires regular dedicated time and effort. However there are four key things you can do to accelerate your climb up the property ladder! Before diving in and making your investment it is worthwhile to consider the following top tips:
Location, Location, Location
Invest in an area with strong demand for rental accommodation, this will significantly increase your return on investment. However if capital gain is what you are after, try investing in an area that has already experienced a downturn and may be ready for, or beginning its next stage of growth. New developments or expanding regions can also offer great appeal and be attractive to young couples and families as they are often associated with new infrastructure, such as schools, park lands & shopping precincts.
Research is Key!
Whether you are purchasing a new or established property, it is valuable to hire a professional building inspector. Authorised inspectors will always check and inform you of existing conditions which may be costly to repair in the future. It is also important to seek professional realty advise to determine an appropriate rental price. Setting rent too high may make it difficult to find a tenant, while setting the rent too low may place you under financial pressure, limit your rental income and potentially attract unsuitable tenants.
Do You Have What It Takes?
Finding the perfect tenant can be difficult and time consuming, however the experience and knowledge a professional property manager can offer is invaluable. They are experts in screening for prospective tenants and have access to invaluable resources such as tenant databases. Property managers also conduct inspections, collect rent, liaise with tenants and ensure maintenance is completed in a timely manner.
Are You Insured?
Regardless of whether you choose to self-manage or appoint an agency, it is important to consider a specialised ‘landlord’ insurance. Insurance should cover property owners for malicious and accidental damage, legal liability and loss of rental income. Often a standard building and contents insurance policy doesn’t cover home owners for rental risks. Be sure to check your policy to ensure you are covered.