Some might say that property investments are perhaps one of the easiest ways to gain a long-term income, however, not everyone is a savvy investor. If you’ve just started out in the market of investment or are thinking about starting your property portfolio, here are four common scenarios you need to be conscious of.
Avoid Emotional Decisions
To succeed as an investor, you must be ready to cut your emotional ties with your investment property. Although it served you well, the purpose is to generate your income. Spend more time focussing on how you can improve your positive geared property to make the most of your home.
Leave it to the Experts
Sometimes it’s better to let the experts do the work for you. Although it might seem like a great idea to save yourself some cash and manage your tenants yourself, it’s not necessarily the best option as an investor. Property management is a time consuming and can be a difficult job to manage and as a time-poor owner, you should be spending your time looking for the next opportunity
QPG Tip – Find yourself a rental management team who is looking to go the extra mile to manage your property for a price you deem reasonable. Looking local is often the best way to go to ensure you get the best bang for your buck and a team who knows what they’re doing.
Scrap the ‘Reno Dream’ and Avoid the ‘Fixer-Uppers’
Take your time and do your due diligence when researching for your next investment. Although dream-reno and fixer-uppers bring out your creative side, you must consider the pros and cons. Older homes tend to cause issues later down the road such as plumbing and electrical issues as well as become difficult to upgrade with popularised additions such as phone lines, Foxtel, Airconditioning and household upgrades. As an investor, it’s important that you consider the assets and liabilities of your property and evaluate its commercial potential before making the move.
Make a Plan!
One of the biggest mistakes first-time property investors make is buying without a plan. To be successful in the property investment market, you must establish some ground rules and set yourself goals. Once you’ve established what you want and how you’re going to get it, you have to develop a strategy. Ask yourself:
Are you a short-term or long-term investor? Do you want short-term or long-term tenants? How are you going to maximise your cashflow?
Developing an investment plan will not only save you money in the long run, but it will assist in ensuring that the properties you choose to buy will benefit you and remain positive-geared.
If you are interested to learn learn more about developing a property investment strategy or would like to learn about buying your first investment property, the first step is to assess your eligibility. Click here to complete an Online Finance Assessment or phone our friendly team on 1300 248 514.