Be­fore you in­vest in prop­erty mar­ket

Whitsunday Times - - DOMAIN -

FOR buy­ers look­ing to start or ex­pand their in­vest­ment port­fo­lio, the de­ci­sion­mak­ing pro­cesses are vastly dif­fer­ent than buy­ing a home to live in.

And, ac­cord­ing to the Real Es­tate In­sti­tute of Queens­land (REIQ), the cur­rent eco­nomic con­di­tions mean in­vestors need to be ex­tra care­ful in how they choose and man­age in­vest­ment prop­erty. This gives them more cer­tainty on in­ter­est rate costs.

Savvy in­vestors know that a well-con­sid­ered main­te­nance strat­egy (such as clean­ing car­pets and keep­ing land­scap­ing tidy) can be ef­fec­tive in achiev­ing op­ti­mal rents and re­duc­ing tax.

De­pre­ci­a­tion also works in your favour when you own an in­vest­ment prop­erty. In­vestors should con­sult a tax ad­vi­sor to find out the tax pros and cons of in­vest­ing in rental prop­erty.

An in­vestor’s aims should be to max­imise their re­turn and pro­tect the value of the as­set into the fu­ture.

Man­ag­ing a prop­erty takes time and ex­per­tise if it is to be done prop­erly.

A prop­erty man­ager can iden­tify suit­able ten­ants, check ref­er­ences, and en­sure that doc­u­men­ta­tion is in or­der in re­la­tion to leases, rental bonds and pay­ments.

They will also take care of on­go­ing com­mu­ni­ca­tion with ten­ants, con­duct in­spec­tions and co­or­di­nate main­te­nance of your prop­erty.

REIQ ac­cred­ited agen­cies com­plete com­pul­sory com­pli­ance and pro­fes­sional de­vel­op­ment train­ing and have ac­cess to all the lat­est leg­isla­tive and prop­erty mar­ket up­dates.

When it comes to don­ning the in­vestor’s hat, cap­i­tal growth con­tin­ues to be the fun­da­men­tal goal for most res­i­den­tial prop­erty in­vestors.

Home buy­ers all want their patch of land, but it is land value, not land size, that drives cap­i­tal growth.

And if you don’t know where to buy, fol­low the preva­lent de­mo­graphic trends and buy where de­mands ex­ceeds sup­ply.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.