Are you a property investor or looking to get into the market? Being a property investor is not always easy, but here are some helpful tips that could help you along the way:
Our Top Tips:
Property return: You must understand that property provides a different return for you than any other assets. Generally, investors look for cash flow (via rental income) to keep them in the market, and growth to get out of the market. Investors should learn to calculate property returns. This may be useful in determining which properties are worthy of investment.
Managing your portfolio: Even after you have put together your portfolio of properties, it is important to remember that your portfolio still requires to be managed on an ongoing basis. This means that you will need to review all of your properties individually to assess whether each property should be retained or sold.
Pricing limits: You can set an upper limit of how much money you would spend on a property. You should be comfortable with the amount you are spending and ensure that you are not spending too much for a property that you are unlikely to cover with a return.
Planning: To be a successful property investor it is crucial that you carry out your own research prior to purchasing any property. You should undertake research in regards to: the local area, future plans of the council, agreements that are attached to the property, management arrangements and the extent of demand for rentals and sales.
Purchasing strategies: You should be cautious when using unusual or comprehensive purchasing strategies. For example, if your strategy involves a buy and hold strategy, you would not be able to afford put in place a structure that will not remain efficient for the life of your investment. To find out what the best purchasing strategy is for you it is always recommended that you consult with your financial planner.
Landlord responsibilities: Even though you may have a professional agent managing your property, does not mean that you do not have any responsibilities as a landlord. Failure to carry out your responsibilities may result in significant penalties. You should become familiar with what responsibilities you have as a landlord. It may be useful to visit the Fair Trading website to inform yourself. You should also ensure that your landlord’s insurance is adequate and up to date.
If you require any further information in relation to the above, contact us at The Quinn Group on (02) 9223 9166 or submit an online enquiry form today.