Making the decision to invest in property is a big decision! After you’ve made up your mind to take the plunge and become a landlord, there are a myriad of crucial decisions to be made.
To help you get great returns on your investment we have put together the ultimate checklist to get you moving in the right direction, generate great returns and start to grow your investment portfolio.
How to find the hottest suburbs?
The values of property consistently fluctuate and choosing the right location can sometimes be a gamble. Making an informed decision on your location can be aided by considering the following factors:
Do some research on the upcoming development infrastructure of the area you are interested in. If there is plenty planned, then the area is likely to experience population growth. This means your investment may grow quickly (as the area’s population grows).
Expected Rent vs Property Values
Finding areas with high rental prices in reasonably priced properties will help you to increase your returns.
Choose an area with low to no vacancy rate. This means it is a popular area and may be easier to find tenants.
Stick to What You Know
Local knowledge is an absolute godsend and will save you time researching. Check out recent sales so you can understand how the market is performing.
Found The Prime Location – What Next?
Once you have found a great area, you need to find the perfect property. Some questions you need to ask are:
What features will make people want to rent my property?
Will you target tenant love great storage space, a large balcony or a brand-new kitchen…?
Is it close to shops, train stations, buses, schools, universities, parks, sports fields, restaurants, bars, cafes …?
Watch out for public transport “dead zone” or being too close to busy or loud traffic areas or noisy industrial sites.
What type of tenant should I target?
Consider the demographics of the area e.g. mature couples, young families, young professionals. Once you have worked this out make sure you choose a property that will appeal to the right type of tenant and make sure you don’t isolate a potentially valuable demographic.
What future maintenance will be needed?
An older home may look great and be reasonably priced, but things may cost more to fix than a newer property. Remember, as the landlord you are responsible for maintaining the property, so take this into account when making your choice.
Are there body corporate/strata fees?
Find out what these are before buying an apartment. Some complexes have huge annual strata fees they don’t tell you about (unless you ask).
What ongoing costs do I need to consider as a first-time landlord?
Once you have shelled out for your new property, plus stamp duty and conveyancing there are also ongoing costs to consider:
It’s up to you if you choose to manage the property yourself or enlist the services of a professional property manager (in exchange for a percentage of the rent). You will also be up for other costs including but not limited to: Land tax, council rates, water rates, repairs and maintenance, insurance.
A professional property manager will be able to take care of the following tasks:
- Finding and screening tenants
- Chasing up rent arrears
- Dealing with repairs and maintenance including finding you the best quote and making sure work is completed
- Performing regular routine inspections
- Keeping track of all expenses (for tax purposes)
This essential to protect yourself from losing rent, damages or building replacement. There may also be common areas which need extra insurance (split between multiple property owners sharing these areas).
Maintenance and Repairs
When something breaks at your investment property, its up to you to fix it. Consider this before you rush in and buy an older property.
You are not alone, and this is why so many people are turning to one-stop shop investment property companies like Dream Design Property (DDP). Founded over 8 years ago by successful investor, Zaki Ameer, DDP’s hand-selected team of experts that can guide you through the entire investment process from designing your initial investment strategy to property management, maintenance, and repairs.
Ameer shared, “DDP’s team has developed and implemented a step-by-step process. We are dedicated to ensuring the optimal level of service at a cost-effective price”.
Ameer amassed his own portfolio of 10 properties, valued at $3 million in just a few short years. He started DDP so he could share his knowledge with investors. If you are looking for someone with a proven track record, get in contact with DDP and start your investment journey and make those dreams a reality.