How to boost your property investment returns

HOUSING is booming as Aussies focus their spending at home.

Australian Bureau of Statistics figures this month showed housing approvals at a 21-year high as record-low interest rates and government stimulus entices home buyers. That’s good news for the nation’s two million-plus property investors, but there are many ways to maximise real estate’s return, and it often starts with the interest rate.

Turner Real Estate CEO Emma Slape says investors should compare lending rates to get the best loan deal.

“A small decrease in rates could allow a further investment purchase,” she says. And it’s wise to get a tax depreciation report. These are prepared by quantity surveyors and usually cost $500 to $800 per property, but most investors get much more money back through tax deductions over several years.

“Deductible items can make a substantial positive impact on your end of year tax return, meaning more money in your pocket annually,” Slape says. Investors should target suburbs of strong tenant demand.

“Things like infrastructure, schools, transport and health support close by are all key features for tenants. And make sure you choose an experienced property manager to ensure the rent matches the market, the paperwork is accurate and the property is regularly inspected for upkeep and maintenance.”

Property investment adviser and buyers’ agent Cate Bakos says investors should be proactive about getting preapprovals for loans. “Your negotiating and bidding power is strengthened when you’re not worrying about your finance,” she says.

“Pay attention to price and sales growth, and research comparative sales in the areas you are targeting.”

Slape says: “Look at longterm capital growth in the suburb and yield.”