» Tips for Successfully Starting Out
Understand that property investment is a long term commitment;
Research rental yields by location and choose the growth address rather than the plush address;
Set clear goals for your desired return on investment and choose your property wisely. It should be in good repair, easy to maintain and close to services – like public transport.
Don’t over-extend yourself. Know your investment budget and don’t exceed it;
Understand the costs of keeping a property in rentable condition and see if you can manage these;
List of costs:
- Maintenance costs (safety, pest control, exterior façade, servicing [hot water, air conditioning])
- Repair Costs (plumbing, electrical, structural, fixtures & fittings, emergency)
- Restoration Costs – between tenants (painting, cleaning, gardening, replacing and refreshing fixtures& fittings)
- Running costs (council and water rates, strata, insurance, property management)
Choose your property manager wisely. This person is effectively your business manager and they are accountable to you! Ask them many questions and insist they keep you informed every step of the way;
Know your neighbourhood. Check it out at different times of the day, read location reviews, consider the community services nearby and ask yourself if you would rent there;
Talk to people – lots of people. Friends, industry experts, property managers and regulators can help.