Category Archives: Investment

Is it time to hire a property investment advisor?

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The most successful people know that to achieve their goals, they must have a strategy in place. Being a landlord is no exception. If you want to achieve your investing goals, whether that’s owning one property or 5, start with the big picture plan and break it down into annual, monthly and weekly tasks.

If you are new to property investing, you may need to connect with an expert and employ the services of a property investment strategist to help you.

A good property investment advisor will be unbiased. They will not be trying to sell you something. They will give you honest feedback, and develop a strategy that is aligned with your financial goals, your risk profile and also aligned with your current bank balance.

Here are a few things to think about that will help you determine who will be the best fit for your needs.

Most advisors probably have their own investments so start by asking them about their track record. Find out when and how they started, what they like to invest in, how many properties they own, what mistakes they made etc. Finding out this information should provide you confidence and encouragement about their abilities.

Having their own investments is not essential, however. Regardless of whether they do this for themselves, you’ll want to see testimonials of other clients they have helped. Do your research and find out what other people have to say about them.

Investment techniques change over time as markets change. Find out how they recommend structuring investments and the techniques they use for maximising equity and cash flow for their clients.

Hiring an advisor is a big step in your investing success. What tips do you have when choosing the person who is the right fit for your unique situation?

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What do tenants actually want in a rental?

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The thing about being successful in business is giving your customers what they want.

Being a landlord is no different.

Every city and suburb are different, so tenants will be looking for various things.

Warm areas want A/C and cold areas want a fireplace or sufficient heating in winter.

Backyard entertaining area

We all love the outdoors and having a great entertaining area in the garden will delight tenants.

This will be more important from now on with summer on the way.

If you are looking for new tenants now, spend some time making the garden gorgeous for summer.

Sufficient storage space

Storage is always going to be a problem for everyone. We all have way too many belongings, and there is never enough room to put our things so it’s no surprise that having sufficient storage space what tenants are looking for.

If your rental has no built-in wardrobes and you only have one cupboard to store everything, you’ll need to get some extra storage space added. This will be vital to attracting the right tenants.

What are tenants looking for?

Tenants are like house buyers, they are looking for the similar things in a property. They want a safe, well-maintained property in a good area that is close to amenities. Different demographics will want different things. A family will need enough bedrooms and decent size living area while a young professional will need a secure building with parking close to the CBD. When you are looking at purchasing an investment property, how do the features compare to other rentals in the area?

Would you live there?

Look at the property from your tenant’s perspective, would you live there? You don’t have to love the style of the house, but would you live there as a person renting? Is there a good heating/cooling unit? Is there a place to enjoy a beverage outside on a balmy evening? Is there a place to park your car? What about storing camping gear, bikes and other equipment? Is there are sensible layout? Do you have to walk through a bedroom to get to the only toilet in the house?

What other features have you heard tenants say are non-negotiable?

3 tips to being successful at a property auction

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When you want to purchase an investment property, whether it is your first time or if you are a seasoned expert, it is always a good idea to check out local auctions to try to snag a great deal. Here are three tips to being successful at an auction.

Have you done your research?

Always research the market you want to buy in and talk to Agents and other experts to make sure you go into the auction fully informed and the property and the neighbourhood. Research online as well if you haven’t already done so. You can check out other auctions to see how they operate if you’ve never been to one before. Always get independent advice on legal, finance and building matters before sale day.

The more research you do ahead of time, the more prepared and calm you will feel on auction day. You’ll know if the property is something you want to buy and you’ll feel confident knowing you are going to get a great deal.

Do you know the rules of an auction?

Get there early and familiarise yourself with the rules of the auction. In Victoria, the auction rules must be displayed at least 30 mins before the start. The auctioneer will officially let everyone know that he will run the auction according to the rules of the state and bidders mustn’t make false bids or cause a disruption. You can get a large penalty if you are caught doing this.

What’s your upper limit?

Auction are very exciting, and it can be easy to get caught up in the moment. Know what your upper bound is before you start and stick to it. The auctioneer wants to get the best price possible, so they encourage bidders to compete. Know what the property is worth and what your budget is.

What do you think about auctions? Let us know in the comments if you’ve purchased an investment property at an auction, or if you plan to in the future.

Invest in your future and buy a rental property this summer

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Will you be taking time out and hitting the beach this summer? The real estate market slows down over New Years so if you are looking to purchase a rental, this could be your opportunity to find a great bargain. If you don’t own and investment property yet, it’s easy to get overwhelmed with so much information out there.

Here are a few points to consider:

What’s your financial situation?

What have you saved for a deposit? What about other sources of money? Make sure that you have at least 10%, and some banks will want more. They also want to know where you work and will love to see that you have a secure job.

If you are relying on a First Home Owner Grant (FHOG), remember that more often than not they are designed for properties that you intend to live in rather than investment properties.

Do your research

What do you know about being a landlord? Do you have an investment strategy and are you clued up on how to evaluate a property to see if it will be a good fit for you? If not, then start talking to people and finding out everything you can about it.

No one does this alone

Outsourcing and delegating are probably the most important you’ll learn. You need a lot of people around you to make a successful landlord – Lawyers, building inspectors, buyers agent, financial planner, a property investment adviser, finance team, etc. Build your team and start putting offers in on properties.

Take the first step

You can have all the knowledge in the world, but it’s worthless if you don’t take action on it. Buying a house is a big deal, whether it’s your first or fifth one and you might experience ‘analysis paralysis’ at some point. You spend all your time researching but don’t have the confidence to take the plunge and do it. This is when your team will help you take that first step.

Are you going to invest in your future while everyone else is at the beach this summer?

3 questions to ask before buying an investment property

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It’s buying and selling season. The spring and summer months are always busy for real estate.

If you’ve been thinking about getting into investing, the next few months are the perfect time to start.

A buyer’s agent is your best friend when it comes to negotiating a price for a property, but if you have decided to do it yourself, there are a few key things to keep in mind.

I’m sure you’ve looked and looked at a lot of properties by now, and if you are ready to get to the negotiation table, you’ll know what similar houses are selling for.

Remember, the key number here is the final sale price, NOT the asking price.

It is fairly common that an agent will list a house 5-10% more than what the vendor will settle for, so keep that in mind when you are heading into negotiations. The asking price is just the starting point. The final sale price could be quite a bit different.

So, before you barge on through to the negotiating ring, here are a few questions to ask the seller.

Why are you asking for that price?

Sometimes a vendor will take on their agent’s advice and list their property appropriately; others will have their heart set on a particular price and will-not-budge, no matter what their Realtor says. These types of sellers are always tough to negotiate with.

Have you had any other offers?

If so, you will then know what the competition is like for this property. A lot of competition means the final sale price won’t be as low as you would like.

How long has it been listed for?

If it’s been on the market for a while, the vendor may be more willing to negotiate. If it’s just gone onto the market, then the seller may be willing to wait around to see what happens.

Why are you selling?

If you know their personal circumstances – divorce, a death in the family, a move across the country, then you know they may be willing to settle quickly (aka willing to negotiate), which may provide you with the opportunity to buy it immediately.

What other important questions do you ask the seller before you purchase their property?

Landlords, what do you look like to your tenants?

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You have bought an awesome rental property, and now you need to fill it with an equally awesome tenant. Someone who will take care of your property and stay there for some time – great tenants are attracted to properties with specific qualities.


How do you come across to your tenants?

If you had a shop and customer was looking at a $15,000 item, how would you treat them?

If your tenant is paying you $300 a week rent, over 12 months that’s $15,000. Not only are they paying you money and paying the mortgage, but they are giving you all the appreciation value for free. It pays to treat your customer (and your investment) as a top priority.

Did you stop and think about how you dress when you meet your potential tenants? Do you show up in an old t-shirt and worn shoes?

Tenants will judge how well maintained your property is by the way you present yourself – both in appearance and in attitude. Present yourself well, and it will help you get what you are looking for.

Be on time and be organised

You’re hosting an open home for your rental. You are half and hour late, your car is a mess, and your fumbling to find the paperwork you’re looking for.
It doesn’t paint a pretty picture.

Or, your first prospect arrives at the open home, it’s all opened up with your checklists and application forms a neatly laid out. You then efficiently talk them through the features of the property and show them around. You let them know what’s expected of them as tenants. If they are your ideal tenant, they’ll stick around.

Turning Pro

Be professional at all times, and it will make tenants feel reassured, and they’ll know what is expected of them. Present a dishevelled chaotic persona and the bad tenants know they can treat your property with the same manner.
There is a lot to be said for personal attitude. If you don’t think you can present yourself as a professional, organised and efficient landlord, consider a property manager – an organised and professional one!

If you need a property manager, contact us at True Property Management to find out how we can help you.

How to snag a deal when it comes to investing in property

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One essential element to being a successful property investor is getting to the property before the competition and snagging it for under market value.

But how do you do that?

It all comes down to planning.

Research and Planning

You need to do lots and lots of research! The numbers don’t lie, and you need to have accurate historical data to make informed decisions. Some areas you need to cover include:

Median price in the suburb that you are investigating – past 12 months, five years and ten years
Track property sales in the targeted suburb. Which ones are going to auction, which is being passed on. Ask for price guides from agents. (Keep a closer eye on comparable properties)
When you are viewing a property, find out what it last sold for, when and how long it stayed on the market.

 

Consider a buyer’s agent

A buyer’s agent is on your side. They are trying to get the best deal, and they take the emotion out of it all. Send the agent to auctions to ensure you don’t get caught up in the excitement and go over-budget. Buyer’s agents are experts in the areas you’re looking at, and from their experience, they will be able to give you a general idea of what a property is worth.

 

Make an offer

Sometimes you might want to put in an offer before a property goes to auction (if that is where it’s going). Some vendors may want to skip the auction stress altogether and jump on your offer. Have a good negotiation strategy – not offering your top dollar first off is a good move.

 

Know when to walk away

There is always going to be another property around the corner. So if you miss out on one because it’s more than what you can afford, don’t worry another one is on its way. Plus, you never know, the vendor may not be able to sell it for their asking price and may get back in touch.

Bargains aren’t easy to find but they’re definitely out there. Have you snagged any good deals lately? Let us know in the comments.