5 more tips for landlords to make money out of property investment
1. Making money isnt just about rent
Tax maximisation and depreciation are just as important as achieving a high rental amount. The Australian Tax Office produced a very valuable book called Renting Properties which is well worth a read.
2. Have a plan
An investment plan should be for at least 3 years and should focus on a steady increase in the number and variety of properties included in your property portfolio. Set your goals ambitiously but realistically.
Think about what you will need to achieve this investment goal. Your real estate agent should be your first point of contact and should be able to provide all the help and guidance you need.
3. Buy what you can afford
Buy what you can afford and not where you want to live. This is an investment property not a family home. So the more you think about financial viability and less about how much you like the property the better.
4. Treat property investment like a business
Dont become a property investor if you dont enjoy it. Understand your rights and responsibilities as an owner and become an expert in the field. Learn what makes a property attractive to the end user and who are the best in their fields to help you create wealth.
Become known for the quality of the properties you own.
5. There is no such thing as getting rich quick
There will always be peaks and troughs in real estate investment, however most investments even out in the end. Assemble a squad of experts around you. Remember property investment is a long term activity so try to anticipate and plan for the bad times just as much as the good.