Essential factors for your property investment exit strategy

We speak to dozens of property investors every week and we know that a lot of you are getting nervous about the current conditions.

Whilst we are not advocating panic and fire sales, we are guiding our landlords to make smart decisions with their portfolios, in particular, to maintain self-management as the more viable option for reducing costs.

Here is a list of essential factors our most successful property investors, have recommended when formulating an exit strategy:

• Get as many facts as you can about a property and the local area BEFORE you buy a property

• Have a strict plan about how long you want to hold a property for and be clear about what you are trying to achieve

• NEVER over-pay for a property. This will bite you in the proverbial when prices start to fall

• If you are buying off-plan, get in as early as possible. Completed apartments cost a lot more

• If the property you want is going to leave you with less than $100 a month- re-think your strategy

• Always prepare for the worst-case scenario, have insurance and a cash buffer in place

• Always think ahead and review your plan annually

• Self-manage your portfolio- don’t waste thousands on property managers

• Sell properties to pay off debt and move remaining loans to principal plus interest

• Hand over control of your investment properties to family members, through a trust and the appointment of a new company director

• De-risk wherever you can-look carefully at your portfolio and get rid of the riskier properties first

• Don’t buy properties to flip in a falling market, no matter what the data might say

• Above all- DON’T PANIC


Jason Gwerder
Friday, 5 October 2018

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