Property Investment Update | Real Estate Investing Advice & Strategies From Experts You Can Trust
Peter is head of Metropole Property Management. As a licensed estate agent, his 20 years of industry experience gave him the depth of knowledge to inform readers how to maximize the performance of their investment properties. Visit Metropole.com.au
When it comes to managing your investment property to ensure you get the best possible returns, nothing beats the inside scoop from a property management professional who knows the ins and outs of looking after landlords.
So we thought…why not share our top six tips on how to best manage your investment property, compiled by the head of Metropole’s property management department, Peter O’Brien.
When I ask property investors what qualities they are looking for in a tenant, they usually come up with a list that looks something like this:
“I don’t want any property management headaches. I want a tenant who pays on time. I also want a tenant who takes care of my investment property. Then I want a tenant who is going to stay forever, and one who never calls with problems .”
So who are these ideal tenants and, more importantly, how do we attract them?
How do we tempt the tenant who will look after the house, the landlord and the property manager?
The best way to answer this is to flip the question on its head, and ask what are THEY looking for.
Here is a list that any good tenant – and we have plenty of them on our books at Metropole Property Management – would compile: [Read more...]
When you consider that buying an investment property will be one of the biggest financial commitments you ever make, why would trust just anyone to look after it for you?
For a small annual fee, professional property management can save you valuable time, money and headaches, making your investment journey a lot smoother.
And of course the property management fee is fully tax deductible, so the argument that you can save a few dollars with a bit of DIY property management really isn’t justified.
Additionally, failing to invest in a property manager can actually cost you more in the long run, as they can be invaluable in maintaining your assets’ long term rental yields and capital growth. [Read more...]
When it comes to renting out an investment property at the right price, many landlords can be at a loss as to where they should begin.
Some believe that their property is quite simply the “bees knees” so it must be worth far more than what it perhaps is.
Then there are those investors who over-commit to a large mortgage and expect their tenants to foot the bill for the monthly repayments, regardless of whether the rental amount is reasonable or not. [Read more...]
While many investors spend a large amount of time and effort carefully researching the property markets and then finding the top investment, they ignore the role that a professional property manager can play in preserving their property’s capital value and maximising its income.
With rising rentals and falling vacancy rates, many beginning landlords fail to ignore the relationship with their property manager as an ongoing business partnership. Too many landlords choose their property manager on fees alone.
Others think they don’t need a property manager at all and can do it themselves. This is possibly because they don’t understand that property management is much more than just collecting rents.
Is there any relief on the horizon for Australia’s embattled tenants? With ongoing talk of inflated house prices pushing home ownership further and further out of reach, it seems that many would-be home buyers will remain trapped on the rental roundabout; forced to deal with rising rents over 2011 and beyond.
RP Data predicts that rents across capital cities are set to climb by 7% this year, on top of the additional 4.2% average increase renters were hit with last year. [Read more...]
While capital gains have been undeniably slower over the past few years than they were during the property boom we experienced earlier this decade, a new report from RP Data reveals that this breather in value growth has allowed rents to play catch up.
Research indicates that our residential property markets have experienced a number of ups and downs during the five years to September 2010. Conditions have varied from modest growth in 2005/06, rapid appreciation in 2007, a marked decline in 2008 and the recent period of strong growth we enjoyed in 2009/10, with overall values increasing by an average 7.1 per cent per annum throughout the five year period.
Across all capital cities, average annual growth was recorded at 7.0 per cent for houses and 7.3 per cent for units, which translates to a total dollar value gain of around $140,000 and $123,000 respectively. [Read more...]
Buying your first investment property can be both exciting and daunting . You’ve poured your hard earned savings and/or equity into a expensive asset, and now you take on the responsibility of being a landlord and the challenges of property management to ensure you maximise the return on your investment property.
Over the years I’ve see numerous mistakes made by “learner” landlords who have limited knowledge of managing an investment property. So to help you avoid these property managent mistakes, here is a list of what I would consider the “7 deadly sins” of property management committed by beginning investors and some tips on how you can avoid them.
As Australia’s property values continue to rise onward and upward, it would seem rents are set to head in the same direction – and at quite a rapid rate.
Tenants who may have been keen to get into the housing market, but were having difficulties due to affordability issues and rising interest rates will soon be hit with the double whammy of rising rents, as landlords get set to enjoy the benefits of a “rental boom”. [Read more...]
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Is 2012 the year of rising rents?
At times of slower property price growth; let’s be honest – no price growth in some areas, property investors count on rising rents to boost their investment returns.
The fact is, since the beginning of 2006 rental growth across the combined capital cities has outpaced the growth in home values. [Read more...]