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
If you are trying to reduce your property
management costs- use RealRenta to
automatically manage your tenancies.
RealRenta does EVERYTHING property managers do at less than a
QUARTER of what they charge.
Become
a RealRenta Landlord NOW and save
25% off the normal subscription costs:
Jason Gwerder
Saturday, 11 April 2020
