Investing in property is often seen as one of the best ways to create wealth in Australia. Making smart decisions to maximise your investment can be challenging whether you a first time or seasoned investor. Every property is different and knowing where to start or what to consider, is the service Halfapercent Real Estate provides our clients to ensure the success in growing their wealth.
Agents might look the same, but when you take a closer look, the differences are significant.
As a busy person, you require the day-to-day management of your property to be handled with professionalism, enthusiasm and commercial acumen. From repairs and maintenance, to renter checking and monthly statements, Halfapercent Real Estate’s fine-tuned and realistically priced service will suit you perfectly.
As an investor the goal is to find a good renter that pays market rent on time, and keeps the property clean and tidy
Our role at Halfapercent Real Estate is to make this happen.
At Halfapercent Real Estate we are responsible for:
We conduct six monthly periodical inspections and relay this information to you in a written report with photos on the quality of your tenancy, ensuring they are looking after the improvements you have made. In addition, we prepare an annual property review with an update on the value of your investment and growth.
Halfapercent Real Estate helps ensure:
There are two (2) common ways to purchase an investment property cash flow positive or negatively gearing it. Your investment strategy will depend on your income and it is very important to talk to your accountant about the right structure for you.
This is an investment property where income from the rent is greater than the sum of all the expenses of the property. Effectively, you are receiving more rent than you are paying in expenses.
In this structure, the property pays for itself and the additional funds can be used to purchase additional investments.
A negatively geared property is when your income is less than the sum of all your expenses – or in other words, the rent does not cover all of your costs. This structure can offer a number of tax benefits and is popular among investors looking at the property’s capital growth.
Where to buy?
One of the key influences on demand for an investment property is its location.
Good locations will always be in demand for both renters and buyers, so spending time assessing and finding the best location can make a big difference in the long run.
Here are 10 neighborhood features to look for:
Invest in an area you know
Make sure you thoroughly research the area you are considering investing in. Ensure you are across the area’s demographics, infrastructure plans, the capital grow rate of the area and more.
Are there any planned upgrades in the neighbourhood? Which is a good sign of potential future growth of the area.
Check with the local council for future plans and projects and beware of an oversupply of apartments, as this can dilute demand and therefore the long-term value of your investment property.
Review vacancy rates to find an area with strong demand. Low vacancy rates ensure your property will generally be rented quickly and ensure good cash flow for mortgages and other costs.
Finding a property that appeals to the people who are actively renting in the area is a smart idea. If the majority of people renting in the area are families, then buying a one-bedroom apartment may mean your investment is not in great demand and this could lead to extended vacant times.
Finding and retaining good renters is a key ingredient for investment success. Good renters ensure rent is received on time and the property is looked after. These benefits are vital for an investor.
Our stringent renter checking system includes a 100 point system similar to that used by banks and includes calling the renter’s previous leasing agent to check their suitability as well as confirm their current employment.
Plus, when you consider how much rent you will miss if your investment is sitting vacant for a week, a fortnight, a month – you will understand the importance of finding and retaining good renters.
Here are some features that are popular with renters:
Also having the property presented in its best manner online and at open homes/inspections will go a long way to attracting the right renters at optimum rents. To get your property to stand out on the internet we suggest having professional photos taken and a video or virtual tour ensuring your property stands out from all the others in a similar price range
Improving your investment property will undoubtedly maximise the returns and make it more attractive to prospective renters, minimising vacant periods and helping you maintain your current renters.
Below are some cost-effective suggestions:
Feel free to contact our office and speak to one of our agents on how we can best handle your investment on 9527 1211 or Contact Us.