High demand in the rental market suggests that conditions are improving for investors to return to the property market.
If you are considering investing in the property market, consider the following:
Professional advice
Before buying a property, consult a professional accountant or financial advisor, who can tell you about what you can and can’t claim as tax deductions, how negative gearing works, and other expenses associated with a property investment including levies, fees and other costs such as repairs and maintenance.
What to buy and where
Consider what type of property you intend to buy and the location – these will affect your rental return and long term effectiveness of your investment.
Good property management
An experienced property management can make a huge difference to the management of your investment property, providing local market knowledge and expertise.
Repairs & renovations
Landlords have a legal responsibility to ensure their investment properties are safe, but in addition it is in the best interest of the landlord to maintain their properties as it ensures good tenants and rental return over time.
In regards to repairs, ensure that your property manager is aware how much he/she is authorised to spend on repairs, and whether you are the first point of referral.
Always use qualified, licensed tradespeople to carry out repairs.
Inspections
You or your property manager should conduct regular inspections of your investment property to ensure that it is safe and adequately maintained. You may also consider regular building and pest inspections depending on the property.
Security and smoke alarms
Your property must also be reasonably secure, and this is of course dependant on the area. Your property manager could also recommend reasonable security measures. Smoke alarms are however compulsory since new legislation came into force in May 2006.
