5 common mistakes of property investing
Understanding how to invest in property can be complex, because each investor has their own buying rules, unique journey to follow and goals they would like to achieve. If you have decided property investing is right for your wealth creation plan, here are some practical tips to assist you along the way to be successful.
Treat your property as a business and bear in mind it's a long-term journey. Keep on top of the goals you want to achieve and the milestones you need along the way.
Common mistakes include:
1) Losing sight of the big picture.
Stay focused, regularly check on your portfolio's fundamentals ie: your equity, available depreciation, cash flow, rent reviews, interest rates, etc:
You can contact Lisa Meredith, lending specialist at Loan Market for a review of your lending. You may get further optimisation, improve the performance of your portfolio, maximise any tax benefit available to you or leverage your equity to finance your next investment project.
2) Neglecting your property
Well maintained properties attract good tenants and generate good rents. Make sure you talk to your property manager who inspects the property regularly and ask for recommendations as to what is best to do to keep it in good shape.
As property managers and investors ourselves, we are happy to share our knowledge to optimise your returns.
3) Underestimating your running costs
Create a realistic budget that factors in the running costs, repayments, rates, insurance etc of owning investment property and ensure you can meet them.
4) Falling in love with a property
Treat your property investment as a business, don't get sentimental about an investment property. If numbers make good sense and you love the place too, well this is great and a bonus!
5) Being sentimental about your tenants
Make sure you behave professionally, always treat everybody fairly and with respect, but know your rights as a landlord and what is the current rental value of your property. If you are not confident handling this relationship directly, contact us at Catalise, we are here to help and make it all stress free!
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