The last few years have been interesting for property, many investors have been implementing the lessons learned during the GFC and the following recovery.
The downturn proved even the best investors can’t predict exact market timings, which is why they don’t try to ‘crystal ball’ the market. So follow their lead: learn from the past, get expert advice, check your finances and you will be on your way to investment success.
Below are a few top tips for investing:
It should be clean, have good-sized bedrooms, off-street parking, and good positioning away from noise and main roads. These factors will ensure your property is attractive to renters and will guarantee your income stream.
If the property is close to a major CBD, beaches, schools, public transport and leisure facilities it’s more likely to grow by more than the average in a good market and is more likely to hold its value in a down market. If you buy around the median price then more people can afford to rent it and more people can afford to buy it if you were put into a forced sale position.
Cheap properties are cheap because they are not in great demand and there’s plenty to choose from. It’s worth paying market value for a good property in a top suburb rather than trying to save by buying something no one else wants.
Quick renovations such as a paint job, re-carpeting, tidying the garden, painting the fence, installing new curtains or blinds, and replacing the kitchen-cupboard doors can significantly improve the value of your property.
When your property grows in value, refinance to create an emergency ‘buffer’ zone. This will ensure you can continue to make mortgage repayments even if you lose your job.
Hire a professional property manager to ensure you get reliable tenants and that they pay a good market rent. Consider tying your existing tenant down to a new 12 month agreement. This will help guarantee your rental income.