Investing in property is an endeavour where the head must rule the heart, especially if your goal is to maximise financial returns. Understanding this, let’s delve into seven strategic ways to boost your investment success.
1. Prioritise Location
Location significantly influences a property’s price and rental trajectory, accounting for up to 80% of its long-term performance. Opt for locations based on objective data rather than instinct. This might involve personal research or engaging a buyer’s agent for insights.
2. Be Selective with Your Property Choice
Avoid properties that come with inherent issues like structural defects or pest problems, as they can lead to costly future repairs. Utilise building and pest inspections to mitigate these risks. Properties in noisy areas or far from conveniences may also suffer from stunted growth in value and appeal.
3. Opt for a Competent Property Manager
A proficient property manager is an asset, potentially enhancing your income by securing quality tenants quickly and setting an optimal rental price. Their expertise ensures you don’t overcharge and risk vacancies or undercharge and lose out on potential income.
4. Regular Maintenance is Crucial
Maintaining your property not only attracts and retains tenants but also prevents minor issues from escalating into costly repairs. Consistent upkeep is key to safeguarding your investment.
5. Consider Strategic Renovations
Tactful renovations can swiftly elevate a property’s value and rental price. However, it’s essential to avoid overspending or investing in features that won’t attract buyers or tenants. Remember, renovations demand a significant initial outlay and may not suit all investment strategies.
6. Leverage Tax Advantages
You could potentially lower your taxable income through strategies like negative gearing and depreciation claims. Keeping detailed expense records, obtaining a tax depreciation schedule from a quantity surveyor, and consulting with a skilled accountant are critical steps in this process.
7. Refinance Your Mortgage
Regularly reviewing your mortgage against the market can reveal opportunities to switch to a loan with a lower interest rate or one better aligned with your current needs. Given the dynamic nature of the mortgage market, what was once agreat deal may no longer be the best option.
Has it been some time since you evaluated your mortgage? Reach out to explore how refinancing could significantly benefit your investment strategy.
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