Thinking about purchasing another investment property? Youre not alone. The current demand for rental properties in Perth is huge. With fewer properties available, rental returns are rising and this trend is tipped to continue for at least the next year. Here are a few things to consider if youre thinking about expanding your portfolio.
Research the market
The key to any successful real estate undertaking is to do your research. As an investor youre looking for a house that will fulfil a certain need. For example, if you buy near a university, a home with several bedrooms and a low-maintenance garden will be more attractive to the student market. Search around and find out who is renting in the suburbs youre interested in and find houses (or units or apartments) that appeal to them.
Buying another property is going to put a serious dent in your cash flow, so you need to make sure you are in a position to take on another repayment. If you have questions about refinancing or leveraging equity, or the type of loan suited to your needs, we suggest speaking to an expert. (Maryanne Northcott, our full-time mortgage broker, can advise you on the best way to move forward.)
Work with a property management team
Of course, working with a property management team (like Rentwest) makes the business of investing in property that much easier. Dedicated property managers take care of the day-to-day issues associated with owning a rental property. We organise everything from advertising new properties to finding the best tenants and getting your rent paid on time. If youre in the market for a new property we can suggest up-and-coming suburbs and provide you with all the information you need to ensure that you make an informed decision.
Know your rights and obligations
The best thing you can do as a property investor is understand your obligations under the law. We suggest that you read the booklet Renting Out Your Property an owners guide by the Department of Commerce. It contains pretty much everything you need to know in order to avoid potential problems.
Stick it out for the long term
Property investing isnt a get-rich-quick scheme. Its best suited for investors who want a solidly performing investment over an extended period of time. Youll get better rewards if you commit and strategise for a long-term commitment.
Need advice on growing your investment portfolio? Our Business Development team can help. Call 9314 9888 to discuss your options.