10 May Top Tips for Profitable Property Investing
Investing in bricks and mortar can be a great way to create wealth. Property in Australia is still regarded as one of the safest, long-term investment strategies, especially for your retirement nest egg. Whether you choose to rent out the property immediately or spend time renovating, there are some golden rules to consider before taking the plunge into property investment.
Stick to your budget
When searching for your perfect property, how much you are willing to spend can easily become a slippery slope. Sticking to your guns, and your budget will mean you don’t spend more than you can comfortably afford to pay back. Using a budget planner and consulting with your accountant can provide you with a better idea of what you can realistically afford, including possible tax benefits or concessions available to you.
Find a growth area
Choosing a property in an area with high growth prospects is going to pay off in the long run. A property that’s close to schools, a CBD, shopping centres, public transport and beaches generally perform better than others. There are many ways to research growth areas and market data online, such as through Realestate.com.au who provide market and suburb data online.
Consider your ongoing costs
In your budget, you must include any ongoing costs for your property, such as rates, insurance and general repairs. Once in your property, it’s best to fix any arising maintenance issues as soon as possible (i.e. ageing taps and fixtures, as they can become more costly problems if left unattended).
Put some love and sweat into it
When renovating your property, even for smaller projects, the costs of hiring tradesmen can quickly get out of hand. If you are able (or have friends or relatives that can help), tackling smaller projects yourself can save you considerable cash. Depending on your skill level, things such as gardening, painting, cabinetry, and landscaping can be accomplished with a little hard work and elbow grease. Remember, every cent you save by doing tasks yourself now, increases your profit margin later!
Don’t judge a book by its cover
When it comes to purchasing an investment property, you need to think with your head, not your heart. A property can be well styled and have beautiful interiors but that doesn’t make it a wise investment for your money. It’s easy to get emotional but you need to weigh up the pros and cons of a property and decide if it is actually going to yield growth for you as an investment.
Through careful research, number crunching, motivation and a little risk; you will be well on your way to a profitable entry into the property market. At Conrad Carlile, we have the expertise in a variety of areas relating to residential and commercial property including lease agreements and tax minimisation forecasting for revenue returns, financial position and potential growth for your property. Contact us today to talk to our specialists regarding your rental property.