Hey, OzBroker here! We understand that investing in a property is a big step. But did you know that it’s one of the best ways to grow your money if you live in Australia? Not only can a rental property provide you with an extra paycheck every month, but it can also increase your wealth over time.
Now, let’s get down to how you can maximize the returns on your investment property. Trust us, it’s easier than you think.
The Perfect Location is Key
Before anything else, the location of your property can either make you a fortune or cost you one. Always pick a location that renters love and where property prices are likely to rise. To make an informed decision, study the local market. Each city and even suburb can vary a lot, so make sure you do your homework.
Keep an Eye on Your Budget
Decide early on how much you’re willing to spend and stick to it. Overspending can make it tough to earn back your investment. It’s always good to have a clear budget in mind.
Pick the Right Property
Depending on your budget and goals, choose the type of property that suits you best. Whether it’s a house, an apartment, or even a vacation rental, make sure it aligns with what you want out of your investment.
Sort Out Your Investment Loan Structure
Before you make any commitments, talk to an accountant. You’ll want to know how to set up your mortgage for investment property to take advantage of tax benefits and how to share the investment if you’re teaming up with others. Don’t miss out on these perks by overlooking this crucial step.
Screen Tenants Carefully
Once you’ve secured your property, the next big thing is finding the right tenants. Run a background check, ask for references, and check their employment status to make sure they can pay the rent on time.
Maximize Tax Perks
There are a lot of expenses you can claim on your taxes to increase your profits. These include borrowing costs, repairs, and even capital expenditures. Consult an accountant to guide you through this, so you don’t miss out on any benefits.
Quick Tips to Boost Your Rental Income
- Add some Extras: Appliances like dishwashers and air conditioning can make your property stand out.
- Go Green with Solar: Solar panels are an attractive feature for renters and can even let you charge higher rent.
- Regular Check-ups: Keep your property in top shape with regular inspections. Know some good handymen who can fix issues as they come up.
- More Storage: Extra storage spaces like a shed or built-in wardrobes are always a win-win.
- Time for a Facelift: Refresh your property now and then with new paint, updated flooring, or even a kitchen makeover.
- Long-term Leases: Offer longer lease terms for tenants who hate moving. They may even be willing to pay a little extra for the stability.
- Pet-Friendly Properties: A pet-friendly property can command higher rent since they are fewer in number.
- Be Smart About Rent Increase: Keep an eye on the market to know when you can safely increase the rent without losing your tenants.
- Keep Tabs on Your Loan: Lenders often change their home loan for investment property rates. A small change can save you a lot over the long run.
For example, if you have a 30-year mortgage for an investment property of $450,000, a slight 20 basis points reduction in interest could save you approximately $22,500 over 25 years.
Ready to Make Real Estate Investing a Breeze?
Been in the market for a long time, looking for that perfect investment property? Look no further! At OzBroker, we make the journey hassle-free and help you find the best mortgage for your investment property. Time is money, and with property prices on the rise, you don’t want to keep waiting.
👉 Don’t miss out on the ideal property. Contact us today, and let’s make your investment dreams come true!
OzBroker is always here to help you. Don’t let the fear of burdensome processes keep you from a profitable investment. Act now!