Tag 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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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?

Attract amazing tenants to your rental by doing these 5 things

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The purpose of investing in property is to make money, and you can increase your income by adding value to the property over time. This will allow charging more rent, and if you want to sell in the future, you will get a much higher sale price.

There are a few things you can do to increase the value of your property that will attract better tenants and allow you to charge more rent.

Kitchen and bathrooms

Kitchens and bathrooms sell houses (whether you are looking for a tenant or a buyer, you are ‘selling’). That’s a fact. Everyone wants a gorgeous, practical bathroom and kitchen. If you can only afford to update these rooms, you’ll still attract the right tenants. Add a lick of paint and replace the taps if your budget is tight.

More storage options

The most common issue most renters have is that there is never enough storage. Resolve this issue for them by building a garden shed, turning the carport into a garage or including thoughtful wardrobe storage. Get creative and convert the unused area under the stairs into fantastic storage. Look for inspiration Pinterest to find endless ways to deal with storage.

Neutral colours appeal to more people

When updating your rental, replace carpets and curtains with neutral colours. If you’re tempted to include a bright feature wall, you’ll reduce the number of people who want to rent it if it doesn’ got with their belongings.

Gardens and Backyard

A beautiful garden, with excellent fencing, will go a long way in attracting tenants. It broadens the appeal of who will be interested. A fully fenced property is ideal for professional couples or a family with small children or a dog. If you can add a fence to your property, it will be worth your while.

Outdoor patio or deck

Everyone loves to relax outside, so having a patio or deck that naturally flows from the inside will make tenants happy. The house will look a lot bigger when you have open homes, and your prospective tenants can visualise themselves entertaining their friends and family.

Those are some fundamental changes that you can make that should add value to your property. What other ideas do you have that will appeal to potential tenants?

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.

What is the process of becoming a landlord?

There is more to it than just buying properties then collecting rent.

Here are the usual stages a landlord goes through:

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Inspiration

You have the idea to invest in property.

Perhaps a family member has encouraged you, or friends are doing it well.

Whatever the reason, the seed has been planted and you have the inspiration to follow-up on this idea.

Research

Researching takes time but it’s important.

Research all the areas that you think you’d like to invest in.

What type of property do you want to invest in?

What team members do you need to hire? (Property Manager, Accountant, Legal representative)

Financing

How are you going to pay for it?

Who in your team can help you make decisions?

Some finance issues may come under the research section, but for others, it can be a separate category.

Paperwork

Decide how you are going to purchase your property. What type of insurance will you need?

What type of insurance will you need?

What contracts will you need?

Don’t skip this step!

We know paperwork isn’t exciting, but you need to know all of the legal issues and have everything in place BEFORE you start looking for a property.

Search and Purchase

You’ve got the money.

You’ve done the research.

All of the legal issues are ironed out.

Now it’s now time to find your dream rental property.

You’ve got an excellent team who know how to get a good deal.

 

Renovate it

Put your stamp on the property – add value if you can.

Get advice from your contractors.

If you don’t have contractors, find them!

Your ideal tenant needs to fall in love with it.

A great contractor will save you money in the long-run on these points.

Are you using a Property Manager for your property?

If so, I would advise that you get them involved in this step – BEFORE you start to renovate.

A Property Manager will be able to give you great advice on what you should and shouldn’t do to maximise your rental yield.

Promote

If you haven’t hired a Property Manager, you’ll need to handle the marketing yourself, including taking outstanding photos.

Photos can make or break a property.

Your potential tenant’s first impression is likely to be the pictures they see online – so make them appealing.

Then you need to advertise your property in all the places your ideal tenant will be looking.

When you arrange an open home, get there early and have all the paperwork you need.

Always be friendly and welcoming.

You have to make a good impression.

Screen potential tenants

This is non-negotiable.

The screening process is the key to long-term, responsible tenants.

Do everything you should do – and then some.

You will not regret it if you do the work.

But if you decide NOT to spend the time and effort at this point, and the tenant turns into a nightmare, you will kick yourself for years.

You can hand this over to a Property Manager to take care of if you don’t want to deal with this.

Sign and collect

Sign the lease, collect the bond.

Make sure you use a rock-solid contract, that spells everything out and that you go through it ALL with your tenants.

This way your new tenants cannot claim they ‘didn’t know’ they weren’t allowed to sub-lease the property.

Make sure that all adults that are living at the property are named, and they all sign the lease.

Moving Day

Deliver the keys to the tenant, and lend them a hand.

Go the extra mile, give them a ‘welcome’ gift of essentials (toilet paper, dishwashing liquid, tea towel, milk, etc.)

You’ll make a good impression, and your tenant will be grateful.

At the very least provide a contact sheet with your details, the day rubbish is collected, local takeaway places, and other local knowledge.

Collect the Rent

Once you set up an automatic payment there shouldn’t be many hassles with collecting rent, but sometimes there are teething issues, so monitor carefully.

Repair, Maintain, and Inspect

When your tenant calls with an issue, sort it out ASAP.

The sooner you get on top of a leaking tap the better it is in the long-run.

The tenant will understand that you’re responsive, and the property is valuable to you, and you expect the same in return.

Make sure you inspect the property as outlined in your lease, this way you can address issues straight away.

Renew or Re-list

Hopefully, you’ve made a great impression on your tenants, and they want to stay, so renew that lease.

If not, then start the process again at step 6 if you need to.

Do you need to do any touch ups before you re-list the property?

If you want to hand the management of property over to a Property Manager, contact True Property Management.