Ensuring that you do your research in advance can make buying your first investment property a set-and-forget action. Your transition from Citizen Joe to landlord can be smooth, but so long as you follow my Top 5 Tips.
1. Look for good rental return. There’s no point over-spending on a property that won’t repay you in kind. Your rental property is a business and needs to earn its keep.
2. Find reliable tenants. This is where a good property manager is invaluable. They know the ins and outs of tenancy troubleshooting and it’s best to trust their experience.
3. Seek capital growth. While some people think you buy for rental return or capital growth, I believe you can achieve both long term. Avoid over-heated areas and look towards surrounding suburbs instead.
4. Source great finance. Find an experienced mortgage broker and you’ll end up with a great deal.
5. Value for money. Again, this comes down to not over-spending. Anything you outlay for repairs and maintenance will cut into your bottom line – make sure you’re not buying a money pit.
I’ve been investing long enough to know it’s about the process – I recommend you follow each step, ask the right questions and make sure your bases are covered. It’s the key to finding the best stress-free property and management process to suit your needs, then letting the 3Ts of residential investment do their thing – tenants, taxation and time!