Have you ever heard a landlord say ‘It doesn’t matter to me if my investment property doesn’t make me any money’? It is unlikely!
Every landlord wants to maximise the financial return from their investment.
Follow the path of successful investors with these suggestions:
It begins with buying the right investment. Assuming you are doing the wise thing and investing for the long-term, your research prior to purchase should answer such questions as:
• What are the predicted population and infrastructure changes?
• What motivates people to live in the area and what is a typical tenant profile? – this will govern the best type of property to buy.
• How old is the property (as it affects tax and maintenance)?
• Is the property tenant-friendly?
• What will be the cash-flow nature from the property?
Put your investment property in the hands of a professional property manager.
Like every other valuable thing in your life, whether a passion, a loved one or your own health, you want the best possible care and attention.
Manage the dollars wisely.
Take advice from property finance specialists, not just before you buy an investment property but regularly through the life span of that investment.
Get on top of your outgoings.
Review your outgoings each month and talk to your property manager and financial adviser about ways to keep these to a minimum.
Get the best tax advice.
Because your tax refund often holds the key to maximising the returns through your investment property, it’s important to get this right: call in the experts!
Don’t succumb to renovation fever.
Give any capital investment into the property careful consideration. Seek advice about whether costs outlaid through improvement can be expected to return through fetching a higher rent; and remember that a property must be on the rental market before renovations may be considered tax deductible.
A good landlord’s insurance policy is an absolute must!