Purchasing Real Estate: Investment Property Tips and Tricks with Justine!
Investment Property: Advice with Justine
Welcome all Perth investors and landlords! Justine from Centurion Real Estate thanks you for tuning in, listening, learning, and investing back into yourselves on how to become a better investor and a happier landlord.
I have interviewed, sat down and listened to hundreds of landlords over the years. I joined the Real Estate industry when I was 25-26 years old and I’ve personally invested and been through my own subdivision journey. So, I thought I’d bring you the key tips and tricks that I’ve picked up along the way and share them with you!
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 good news. So, on that note, I just wanted to share with you some thoughts and ideas on when you’re purchasing an investment property, how to maximize your returns and how to minimize your vacancy post-settlement so that you’ve basically got that tenant lined up and rent coming in as soon as it settles.
lf you’re looking at purchasing an investment property, why not look at also engaging with the property manager at the same time. Use their knowledge and expertise of dealing with tenants and the area to help provide you with an independent rent appraisal on that potential property that you might be buying.
A part of what I do for my landlords when they’re out looking at properties with various other reps or other agents, they send me a link and I do that independent assessment for them and provide them with a rent appraisal.
It’s also really important to know some suburbs have various trends and demands, so it’s good to share that with the landlord. For example, in High Wycombe, if you tell me, you’ve got a workshop or a pet-friendly home with a second bathroom, I know I have a host of tenants already lined up. I essentially have a database, and we are often 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 that area and 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, I’m happy to go into properties for my clients. If the property is being sold by another agent, I can step in with them and look at the property from a property managers pair of eyes. That’s just understanding any preventative maintenance or potential issues that may come up in the area, ensuring that the house is also clean, tidy and has the features that those tenants are looking for.
Lastly, my third tip is if you’re looking at buying an investment property, we may suggest that you could be putting that on your contract when you’re writing the offer and acceptance. During the process of writing the offer and acceptance, there are some clauses that I suggest inserting at this point. The first is that the vendor essentially provides permission once 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 belong to the vendor and allowing the agent to put an advert up online.
Going towards settlement, that’s generally a 21–28-day period, so at this time we can gather some interest. Once that property settles, we can have home opens and we’ve already got that demand again minimizing the vacancy period. The second clause that you can insert is having a home open on the property leading up to those two or three weeks prior to settlement.
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 of property manager. So, depending on you and on how the offer and acceptance is going, another clause you can insert, is to have the vendor agree to having the property professionally cleaned as part of the settlement process. That also means having carpets professionally cleaned if they’ve had a pet at the property and doing a pet fumigation as well.
I hope these tips and tricks help and I’ve got 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, and I’d love to help.
Thank you!
For More Info on the market, videos, tips, and tricks join our FaceBook Page: