Investing in real estate is a relatively straightforward way to increase your long term wealth and secure your financial stability. While it may not bring you sudden riches, the returns can build up over time. While time is major factor in growing your wealth, there are things you can do to get the most out of your investment property.
LOCATION, LOCATION, LOCATION
Choosing where to buy your investment property is a very important decision. Some areas will produce much greater yields than others, so it pays to make a decision backed by information and insights.
To find out what areas are performing well with the most profitable homes for sale, familiarise yourself with market reports and related blogs. Look into the median prices of different areas, how they’ve grown over the past decade and how they compare with surrounding suburbs.
If you’ve managed to narrow it down to one suburb and you can afford it, study the local council reports and plans to see if there are any changes scheduled for the future that could affect property in the area.
After you’ve made an informed decision and bought a property in a growth area, it can be tempting to just sit back and watch the money come in from rent and capital gains. However, this won’t always work as you may struggle to find growth in a slower market. Fortunately, there are things that you can do to build up your equity and profits.
Australian households spend billions each year on renovations. For good reason too, as they can often add value to your investment property.
Some of the most effective renovations include:
- Repainting (both inside and out)
- Adding an extra bedroom or bathroom
- Upgrading the kitchen
- Updating the front facade
- Creating an outdoor entertaining area
- Adding a granny flat
Some of these renovations are cheaper than others, but what they all have in common is that they can add a lot more value than what they cost.
USING A PROPERTY MANAGER
Having an efficient property manager on hand to tend to any issues your property might have means you will be able to enjoy the benefits of your investment property, without worry and hassles.
A property manager can advertise for tenants, select the most suitable for your home, collect bond and rent payments, carry out inspections and deal with any repairs or required maintenance.
Time is money, and using a property manager to mind your rental properties can save you loads of it. If you own an investment property and require the services of a property manager, contact the Ethan Property team to have a chat about how we can assist you.