The key to successful property investment
is not just getting the highest rent or appointing a property manager to do the job for the lowest fee. There are a number of factors that prudent property investors take into account to ensure that their investment is profitable and grows in capital value, namely;
- Do an annual stock take on your investment. Prior to end of financial year, review the condition of the property to check if all areas are well maintained and in working order. Get necessary repairs done at this time to take advantage of the tax savings you can maximise.
- Appoint a property manager who understands your investments and whose role it is to maximise the income and minimise the expenses of your investment. As with your accountant and solicitor, you are paying a fee for a professional service and advice. Although appointing a low fee property manager is enticing, remember that the person you appoint is the custodian of your investment.
- Ensure that your property is fully occupied by tailoring your lease to the peaks in the market place in order to avoid the lease expiring in the low demand times.
- Create a budget for your investment. Set up a bank account in which funds can be placed to cover future costs such as painting, carpeting and replacement of appliances. Just as in your own home, these items need to be budgeted for to meet your investment needs. By adopting this approach, you will have funds on hand rather than having to dip into your personal budget to meet the cost.
With some strategic planning in the above areas, you can be assured that your property investment will meet your needs of capital growth.
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