10 Tips to Make More Money from your Investment Property
From the Experts: Jace’s Top Ten Tips to Make More Money from your Investment Property
Are you ready to find out how to maximise rental returns, increase rent and make more money from your investment property?
I’m Jace, the owner of Image Realty, and over the years, I’ve helped countless clients to do just that. Today I’m going to share the secrets to success with you, so remember to bookmark this page!
My Top 10 Tips
1. Get a current appraisal
Having a regular appraisal by an experienced property professional who is familiar with the market in your area can increase your weekly rental return, helping you stay in line with current market rental values.
When was your last appraisal done?
Many owners set their rents based on the rental market from years ago and not based on current demand! You could be missing out on increased easy income in a hot market, so book a free market appraisal today.
2. Insurance is essential
It costs a little bit, but the amount of money and hassle it can save you could be immense.
3. Select the right agency
Property Management is a very broad and “all-encompassing” industry but most landlords only choose an agent by location and fee. This may not be the best strategy if you are looking to maximise rental returns. Be sure to choose an agent with similar goals for your property AND a track record of success.
Not with the right agency?
Luckily Queensland legislation allows you to easily transfer your management to a new company with as little as 30 days’ notice. So if you feel like you aren’t getting the best service, try a new agent – it could save you money and stress.
4. Know your property
Many landlords don’t even look at their properties in this new “digital age” of buying interstate. However, it’s always a good idea to go and inspect your house so you know what it looks like and have a clear picture of what maintenance you may need to do in the future. This saves you money and allows you to plan for bigger expenses that may be on the horizon.
5. Know your investment strategy
If you are unsure, seek advice from an agency Client Services Manager, a buyer’s agent, or a financial planner, but know what strategy works best for you. We see a lot of people make the same simple mistakes over and over.
It’s never too late to seek advice from a professional.
6. Stick to the plan
We see a lot of investors buy into an area then see something else they like, sell out, potentially make a loss on the sale, then just get into a habit of flip flopping between investments.
Ultimately, they lose interest and forget why they started the investment journey in the first place. Investing takes time, so do your research, buy in, leave it there and stick to your long-term strategy.
7. Do your research
There are a lot of properties out there and most of the money you will ever make in real estate is when you sign that contract!
Make sure you really do your research before you buy. This includes how much you should pay for a property, how much it should rent for and if there are any manual uplifts that can be done to increase the capital value or rental yield. If you are unsure, seek a buyer’s agent or talk to an Agency Client Services Manager.
And remember, this should be done with every new property you buy.
8. Know your budget
One of the best ways to make money is to save money, as a dollar saved is a dollar earned.
You may have a large budget, but is buying one large house the right way to go? Or is buying multiple cheaper houses a better fit for you? Have you allowed enough funds to cover all the costs, potential vacancies and works that may need to be done? Have you allowed for a buffer for when interest rates rise?
Make sure you pay close attention to your budget and what you should be earning for the money you are spending.
9. Time in market
“When should I sell?’ is a very common question we get as agents.
You hear a lot of stories from people who bought investments for super cheap prices 20 or 30 years ago and now their properties are worth a fortune. But not all properties are the same and markets change frequently. It is a very good idea to discuss the value of your property with an agent regularly as you may be able to sell at a peak, wait, then buy more for your money as the market cools. Alternatively, holding onto a property for a long time in a good steady market may be the way to go because good areas don’t really drop in value.
Take the time to review the market and your property’s value regularly.
10. Is your deposit enough?
Buy now with a smaller deposit or wait a year or two to build a larger deposit to buy a better property? This is something to consider – “Time in Market” can be worth far more, so buying cheaper, but buying now, could mean taking advantage of capital growth that you would otherwise have missed out on, potentially making you huge amounts of money.
Ready to take the next step? Image Realty offers personalised guidance and help to find the right investment property for you.