Property Investing can be quite lucrative if done correctly.< That’s why we decided to give five of our best tips when it comes to property investing to help maximise your rental returns. These tips are not limited to just Auckland; they can be applied anywhere!
1. ADDING VALUE
When it comes to increasing the worth of your property, adding value in the right places can help out a lot. This can come in the form of adding a fresh lick of paint to the exterior, tidying up the landscaping a bit, updating the kitchen to a more modern and vibrant look, to even adding in an extra room. Taking the time to create a strategic plan that best fits your property can make all the difference when it comes to chasing a higher yield.
Timing is everything; like a lot of investments, they say the money is made when you buy, and the same applies to a property. Making sure you do your homework on the best time to buy can prove to be quite lucrative in the long run, in comparison to costing you a lot of money if it turns out to be a lemon. We recommend taking the time to study your market and the internal and external factors affecting it before jumping in to buy. After all, it is all speculation. However, being informed, you’ll reduce the risk.
Cash is the lifeline of any property investment you make, because it is a business. If your strategy is quick cash deals, long-term buy-and-holds, or choosing to buy negatively-geared properties, make sure you map out and forecast your cash flow to ensure you have enough to stay in business!
4. CORE TEAM
Your team is your foundation; without a great support team, it can get quite lonely if you plan to scale your property investment portfolio. We recommend to consider having a trusted team on call, consisting of a quantity surveyor, property accountant, appraiser, conveyancing specialist solicitor, real estate agents (make them your best friend, after all they’re free and can help you find great deals!), builders and contractors, insurance brokers (again free), property manager and a mortgage broker (also free!). With a great team backing, your chances of success will multiply.
5. NEED OR WANT
We’ve all seen a property and thought to ourselves, “gosh this looks amazing! I’d live in it any day so I should buy it!” We can often forget that our investment property isn’t our personal home and we shouldn’t treat it like it is. Think about it in terms of your end customer, run the numbers on it and what they need, rather than what you want for it to meet your metrics. This will help you determine whether or not a purchase is worth it, and leave emotions out of it. Always base your investment choices on logic rather than emotion, to help you make the best decisions.
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