Property Investments

Things To Consider

While finding ourselves knee-deep in changes across the rental property market, its more important than ever before that both landlords and savvy owner-occupiers understand, property investment is so much more than simply a set-and-forget path to wealth.

Property investors can be complacent – and complacent investors are not maximising their potential. For many, the tried-and-tested method of ‘buy home, find tenant, collect income’ sounds like the passive dream, but there is one major flaw in the plan. The property market, like any other, is susceptible to dynamic influences (economy, policy, politics, the natural world, development) which without diligence can derail even best laid plans.

Below are five areas of interest that will add value when it comes time to make decisions regarding the health and productivity of your investment.

• Stay informed. Keep abreast of developments in your neighbourhood – information around vacancies, demand and comparative rental values (also sale volumes, sale averages) can prove invaluable when looking to achieve maximum yield from your investment.

• With this knowledge, weigh up your options – is securing a premium worth the property sitting vacant for a month?

• The neighbourhood. What’s happening in the community, what demographic is driving demand? If you’re seeing a shift, refreshing the property with this in mind could pay dividends.

• Know your financials and keep the conversation going with your mortgage advisor, in such a competitive lending environment not shopping around could certainly cost you.

• Think like a CFO. Treating the investment like a business is non-negotiable, focus on profit and loss – daily cash flow. Capital gains can disillusion investors and its important to remember equity is less important if you cannot service your debt.

As with any investment the overriding theme here is awareness, possessing an acute understanding of the market, your personal capabilities and the assistance available is certainly the difference between an average and smart investor.

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