Money Saving Tips For Landlords
Discover valuable Money Saving Tips for landlords, for purchasing an investment property in Perth from Justine Valender, Director & Licensee at Centurion Real Estate shares with landlords and investors.
Having completed her own two subdivisions, as well as buy a third property ‘new off the plan’ Justine shares the positives and negatives around each investment style. As well as some suggested tips and tricks when writing an offer.
The buzz is out!
The buzz is out – Perth is experiencing an unprecedented vacancy rate of less than one percent, leading to what experts call a rental shortage or crisis. But how does this scenario impact potential investors eyeing the market?
The news is positive for landlords and investors. The a surge in demand from tenants seeking properties is creating an investor’s paradise. However, navigating the investment property landscape requires careful consideration. Are you chasing capital growth, or does a high rental yield align better with your goals? Is subdivision in your future plans, or do you crave a low-maintenance, hassle-free property?
Choices abound when it comes to investment properties, and I’ve provided some insights into the pros and cons of each avenue.
In the vibrant area of High Wycombe, two property ”styles” come into play. The first is older-style homes, often requiring a fair share of refurbishment and renovations situated on a larger 800sqm block. This type of property open an avenues for potential subdivision or front-back development. The second type of investment property is that of amore newer homes, situated on 500 to 600 square meter blocks. While they tend to offer higher rental yields, the flip side is limited subdivision options.
Deciding which type of property to add to your real estate portfolio requires careful consideration and research. Here’s a step-by-step guide to help you make an informed decision:
- Determine your investment goals. Are you looking for long-term appreciation, regular rental income, or a combination of both? Your goals will influence the type of property you choose.
- Evaluate your financial situation, including your budget, available capital, and financing options. Understand how much you can afford and the potential return on investment (ROI) you’re aiming for.
- Study the real estate market in the area you’re interested in. Look for trends in property values, rental rates, vacancy rates, and demand.
- Identify your target audience, whether it’s families, young professionals, students, or retirees. Tailor your property choice to their needs and preferences.
- Cash Flow Analysis: For rental properties, perform a cash flow analysis. Calculate potential rental income, operating expenses, property management fees, and loan payments. Ensure that your cash flow remains positive after accounting for all costs.
- Research the potential for property value appreciation in the chosen area. Properties in areas with projected growth tend to offer better long-term returns.
- Before finalizing a purchase, conduct thorough due diligence. Review property documents, perform inspections, and ensure there are no legal issues or hidden liabilities.
Here are three key tips for navigating this dynamic investment market:
1. Leverage Property Management Wisdom: Engage your property manager. At Centurion, we boast a database of nearly 300 eager tenants on the hunt for their next home. We’re well-equipped to provide insights into what’s leasing rapidly and attracting higher rents. Tap into our repository of information for a strategic edge.
2. Secure Rental Agreements: When purchasing properties where the existing owners wish to stay as tenants, involve your property manager from the outset. Having a solid rental agreement in place is paramount. Instances abound where investors omitted lease agreements, resulting in non-payment of rent by previous owners. Protect your interests by involving your property manager right from the beginning.
3. Pre + Post Settlement Marketing: Post-purchase, consider advertising your investment property even before settlement. During negotiations, inquire about using the seller’s photos to attract potential tenants. Your property manager can lay the groundwork while the property is finalising settlement, ensuring you have a tenant lined up immediately upon completion – a strategy that curtails vacancy periods.
Pre Settlement Inspection: We understand the critical importance of a pre-settlement inspection, and that’s why our dedicated property managers diligently oversee this crucial step (For Free and forms part of Centurion service) . Before the final settlement, our experienced team conducts a thorough pre-settlement inspection of the property, ensuring that every aspect is in line with the agreed-upon terms. From assessing the property’s overall condition to confirming that any stipulated repairs or maintenance have been completed, our property managers leave no stone unturned. This detailed approach offers peace of mind to the buyers and establishes a seamless transition for the new owner. Trust us to ensure that your investment journey starts on the right foot with a comprehensive pre-settlement inspection carried out by our diligent property managers.
As the real estate landscape evolves, seizing these strategic tips can position you as a savvy investor ready to capitalize on the thriving rental market in Perth. Your journey to financial growth starts here!