Tips for Property Investors
When it comes to building a strong retirement plan for your future, the property market is still one of the best places to invest and is still regarded as one of the safest long-term investments.
As an investor you may want to buy a property and lease it out straight away or you may choose to live in the property when you renovate it. When you invest in houses it is a great way to create wealth, and here are some tips for you as an investment owner you should consider before purchasing an investment property.
According to ATO statistics, there are about 2 million individual investors in Australia. Out of this, about 75 per cent investors own only one investment property. And, despite the success stories that you hear, only a handful of investors, around 37,000 in number, own five or more rental properties.
So, what sets apart a property investor with an expanding property portfolio from an average investor?
Smart financial planning is what we’d be tempted to say!
In general, when you are an investor who has had success it is due to the fact the you have been in the property market for the long term and have a financial strategy in place.
So what can you do to optimise your investment journey and achieve your goal of owning multiple investment properties? Here are our 10 top tips for property investors.
- Keep your property well maintained. If you show interest the tenant will look after the property.
- Remember you are not living there. Buy as an investor not home buyer “don’t make it personal”
- Always look at location
- The type of property you purchase reflects the type of tenant that take possession
- Giving a lower rent doesn’t always entice a better tenant
- Know your target market, look at demographics of the area what is most popular
- Capitalisation the property with deductions (speak to accountant)
- Always remember to show the tenant respect and they will give you the same
- Regular routine inspections
Once you have your property ready for rent learn how to find yourself the best tenants to maximise on your rental return.