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Buying for investment

Buying for investment

There are a few basic rules when you come to maximizing your return on a property for investment.

Firstly, you should be looking for a house that has both great potential for capital growth into the future as well as a design, fit-out and location that will attract good tenants. Poorly presented properties and undesirable locations attract poor tenants who are less likely to look after the property and pay rent on time.

There are times when people buying for investment are only looking for the cheapest property they can find. This is not a good way to approach building an investment portfolio. You want a good deal but you also want a good quality property in a good location.

Second, you need an experienced Property Manager to make sure that the property is well cared for. There is a lot to managing a property and an experienced manager can help to navigate the various pitfalls that can occur with rental property.

Finally, be prepared to spend money on your property to maintain the presentation. Tenants are expected to pay for breakages that they cause but general maintenance and “fair wear and tear” are responsibilities of the property owner.

Some owners are reluctant to spend any money on their investment property and over a number of years the property becomes quite run down. As the level of presentation falls, so does the quality of tenant that will be attracted to lease the property.

Sensible owners will keep their investment property in top condition thereby both attracting good tenants and maintaining the market value.

If you would like advice about maximizing the return on your investment property, call our Property Management Service on +61 3 8787 9000

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