Pitfalls to managing your own investment property

Owning an investment property can be filled with challenges to the novice property investor, however in reality doesn’t need to be so daunting when building and creating wealth for the future.
Any investment purchase should be discussed in detail with your financial advisor and/or mortgage provider to ensure that your finances are geared to give you maximum return and benefit.
“With some careful and considered planning, a bit of homework and solid professional advice you can have a very rewarding experience whilst building your own personal knowledge around property investment” said Jenni Wood, Training & Development Manager from Professionals Real Estate Group.
“Apart from the initial purchase, investment property owners should research the benefits of tax depreciation schedules to ensure they maximise their financial returns on their property.  There are many investment property owners across the state that are currently missing out on thousands of dollars of tax depreciable items each year.”
“Added to this is the important investment into a fully comprehensive Landlord Special Risk insurance policy.  There are many insurance products available but probably only 2 or 3 that come highly recommended by property management professionals” Mrs Wood stated.
“Where to buy should be a major consideration and will heavily impact on the type of tenant and rental amount that the property will attract.  Nobody holds a crystal ball, however past performance has traditionally seen areas well located to facilities like shopping, transport, quality schools, recreational complexes, and strong employment opportunities enjoy higher rents and lower vacancy factors” Ms Wood said.
“With a little research of Market Indicators for the areas in which you are considering investing you can establish past performance, which generally gives a good guide in predicting future performance of that area.  Your local Real Estate Institute website is a great place to start your web-based search, followed by more localised research specific to your suburb of choice.”
There are very few quick return opportunities, but with a sound long term investment strategy, the right support products and professional property management you can create an enjoyable investment future.  However, remember always to do your research first so that your decisions are fully informed.