Purchasing Real Estate Investment Property In 2020 !!
Justine: Welcome all Perth investors and landlords, Justine from Centurion Real Estate and thank you for tuning in, listening, learning, and investing back into yourselves on how to become essentially a better investor and a happier landlord.
So, I’m covering a series of topics through the years, I have interviewed and sat down and listened to hundreds of landlords. I joined the Real Estate industry when I was 25-26 years old and I’ve personally invested and done my own subdivision journey, and I just thought I’d try and bring to you some key, tips, and tricks that I’ve sort of picked up along the way, and would share with you, so the first topic, It’s the year of 2020, the future is here!
With Perth vacancy rates down at 2.5%, that’s almost triple to what it was in 2017, we’re finally seeing some investors come back to the market which is really really good news. So on that note, I just wanted to share with you some I guess thoughts and ideas on when you’re purchasing an investment property, how to maximize your returns, how to minimize your vacancy post-settlement so that you’re basically you’ve got that tenant lined up as soon and it settles, and you’ve got that rent coming in.
The first suggestion is when you know what area you’ve looking at renting in, we’re here in High Wycombe. lf you’re looking at purchasing an investment property, why not look at also engaging with the property manager at the same time and use their knowledge, use their expertise of dealing with tenants, dealing with the area to help essentially provide you with an independent rent appraisal on that potential property that you might be buying, so I love to be involved from the beginning.
Apart of what I do from my landlords is, when they’re out looking at properties with various other reps or other agents, they send me a link whether it’s real estate.com, they’re sending it to me, I’m doing that independent assessment for them, and I’m providing that rent appraisal.
It’s also really important to know some suburbs are finding have various trends, various demands, so for example, it’s good to share that with the landlord or if you’re looking at purchasing in a suburb, what is the trend for that particular suburb. Example again, High Wycombe, If you’ve got a workshop if you’ve got a pet-friendly home with that second bathroom, I have a host of tenant ready to go and lined up, I essentially have a database and we are leasing properties even now before they come into the market.
I want to be able to share that with you if you’re looking at the area, I want you to be able to guide you along the way, so that’s step number one, look at engaging with your property manager or a property manager in that area, and bring them along with you through that purchasing process.
The second thing is when I’m sometimes happy to go into properties for my clients if the property is being sold by another agent, I am happy to step in with them and do a home open and look at the property from a property managers pair of eyes that’s just understanding things like what maybe preventative maintenance any potential issues that may come up in the area, ensuring that the house is also clean, tidy and has those features that those tenants are looking for.
Lastly, my third tip; if you’re looking at buying an investment property, just something that to suggest that you could be putting on your contract when you’re writing that offer and accepted. During the process of writing the offer and acceptance, there are some clauses that I suggest to my landlords that inserting at this point, the first one being, that the vendor essentially provides permission that once the property you’ve received your finance approval and you’re heading towards settlement, at this point the property manager has permission to advertise the property for rent so that maybe using the for sale photos that essentially do belong to the vendor, allowing the agent to used those photos and putting an advert up online.
Going towards settlement, that’s generally a 21-28 day period so at least at this time we can gather some interest so again once that property settles we can have home opens and we’ve already got that demand again just minimizing that vacancy. The second clause that you can insert again is that not only do have permission to advertise the property prior to settlement but leading up to those two or three weeks prior to settlement even having a home open on the property.
The last one is when I see a property for sale and it’s going towards settlement at the final inspection, it is clean and tidy but sometimes it is not clean to the standards that as property managers like so depending on you and depending on how the offer and acceptance is going. Another clause you can insert is that the vendor agrees to have the property professionally cleaned apart of the settlement process, that also means carpets professionally cleaned if they’ve had a pet at the property doing a pet fumigation as well so just some suggestions that part of that negotiation process, you can sit back to the seller.
I hope these couple of tips and tricks help. I’ve got so many more up my sleeve, so if you’re looking at purchasing an investment property in Perth, please don’t hesitate to give me a call Justine at Centurion Real Estate and I’d love to help.
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