Is there a crash coming or is it a soft correction?
Will we see deflation or inflation in the overall economy?
No matter what happens in the coming few months, having your rent at or above market levels is critical.
More importantly, managing your expenses is key.
Negative cash flow is a topic that some of our landlords have lately, been bringing up in conversation.
Having cash reserves in any type of market is very important but takes on even more importance in a falling market.
Here are some tips from our most experienced landlords/property investors, on how to prepare for the coming market:
• Do not over-leverage yourself
• Fix all your loans
• Obtain a tax depreciation schedule and if you have missed something in the past, you can claim up to 2 years back.
• Contest your council rates and see if they are in line with the market
• Check the fees that your accountant is charging you, to see if they can be more competitive
• Familiarise yourself with the market rates for repairs and trades-people and shop around
• See if you can create additional rooms in your property by putting up walls so that you can increase rental yield.
• Self manage your portfolio with RealRenta and get your rental income paid directly into your bank account
• Get rid of any lemons in your portfolio ASAP
Trial RealRenta for Free now and get your investment income paid directly to you!
Tuesday, 23 October 2018