Tips To Become A Successful Property Investor
Intent to Invest
When it comes to building a dynamic portfolio of investments to help secure your future, few are as safe as the property market. With long term returns and a stable history of growth, property should be a part of any good investment portfolio. But becoming a property investor isn’t just about finding a gem in a suburb set to boom, or a property in a suburb with solid history. There is a lot more to becoming a successful property investor. If you aren’t sure how to get started, then follow these steps to help get started in the property market.
Find The Right Manager
Investment is all about the future, so you shouldn’t expect to be on beckon call when it comes to an investment property. One of the first steps to becoming a property investor is finding the right property manager. Finding Melbourne property managers can seem tough, but doing your due diligence will mean better returns in the long run.
Look for a property manager with a long history of performance, discuss their recommendations and ask questions about how they handle tough situations. Finding out everything you can about a potential property manager will mean less hassle for you in the short and long term. There a lot of options out there, including rental dedicated managers or mixed rental and sales managers, so think about your needs thoroughly before selecting the manager for your property.
Buy A Little Black Book
An investment property whilst being safe, is also an investment which from time to time may require work. To become a successful property investor, you need to know the right people. If, for example, a hot water heater suddenly breaks, you’d hope that the plumber who comes to fix it is reliable and honest. Instead of leaving that to chance, do your research on your local trades. Then, develop and build a relationship with them.
Think about the possibility of offering them bundled and exclusive work on any of your properties, this should help control rates and fees should they be needed. Once you have developed your little black book, pass the details and instructions on your property manager. Then when things go awry at your property, the agent and the tradie know what to do, without setting you back or even calling you.
Purchasing an investment property may not be the hardest or most time consuming part of your investment. In fact, if you are good at it,that should be the easy part. The difficulty should be in finding the right area. In order to become a successful investor, it should be about setting a plan, doing your research, and finding the area and home to achieve that plan.
If you are looking for a short term gain, then perhaps a renovator in an established area with a strong sales history will work best. Alternatively, if you are after a long-term return, then you need to look into infrastructure plans, migration rates and other factors to help identify the next ‘boom’ area. Whatever the goal, finding the right area is a key to becoming a successful property investor.
Positive or Negative
Positive and negative gearing are popular terms among the best property investors. When you have purchased your investment property, the next big decision will be how you leverage it’s output. If the property is a long term asset, then perhaps you don’t mind a few years of negative gearing and paying some of the mortgage.
If you are looking for cash flow immediately, positively gearing the property is the way to go. But beware, positively gearing a property means opening yourself up to further taxation and potentially a smaller tenant market. Whatever the situation, make sure you have a clear strategy in mind when buying a property. Speak to the selling agent about the history, or rental income potential.
Becoming a property investor can be as simple as buying an additional property and renting it out. Becoming a successful property investor is so much more. You need to build a portfolio based on trust, relationships and a clear strategy with a goal in mind. If you aren’t sure how to start, then use these steps to help get you on the right path.