SO you’re taking the plunge and buying your first Investment Property!
Many first time investors can make mistakes because of their limited knowledge of managing an investment property, so here at RealRenta, we have compiled a list of 6 Do’s & Don’ts to help you maximize the return on your Investment Property.
•Don’t become emotional
Investing is about facts and figures. Invest in a property that you would never consider living in yourself.
•Formulate a strategy
Too many people get into property investment as a hobby and end up in considerable debt. Formulate a detailed investment strategy and business plan.
•Keep up with repairs and maintenance
A lot of new landlords think that the best way to make money is not to spend any on the upkeep of their property. Minor renovations can add significant capital value and increase your rental returns.
•Don’t befriend your tenants
Always maintain an arm’s length relationship, when dealing with your tenants. If you are Self Managing, use a platform like RealRenta to help keep that professional veneer when interacting with them.
•Conduct Rent Reviews
Research the market for commensurate properties annually, to make sure that you are achieving the best possible returns on your investment.
•Get a professional depreciation schedule
There are numerous items in a rental property that can be depreciated at a certain rate allowing you to claim a tax deduction.
When you understand the rules of property investment, your portfolio will generate capital gains in the long term and put you on the path to successful wealth creation.
Saturday, 15 September 2018