Investing in property is not just a hobby or a side hustle, it’s a business that requires a strategic and analytical approach to succeed. You wouldn’t pour your life savings into a business without first doing your due diligence and planning, and investing in property is no different. 

  1. It’s a business…

Before making any investment decisions, it is beneficial to take onboard a mentor or coach who will take the time to research the market, assess the potential risks and rewards, and create a well-thought-out strategy that aligns with your financial capacity and long-term objectives. 

This means being realistic about your current financial situation and future aspirations, and not overextending yourself by investing more than you can afford.  

A carefully devised strategy will help you identify the right properties to invest in, the right time to invest, and the right financing options to use. 

It will also help you anticipate potential challenges and risks, such as market fluctuations, property maintenance costs, and tenant turnover. 

  1. Think big picture and be pro-active…

Thinking in the big picture and being proactive are essential components of a successful property investment strategy. Once you have formulated a sound investment strategy, it’s time to act and actively manage your investments.  

Here are some tips to help you get started: 

  1. Maintain your property to high standards: Keeping your property in good condition is crucial to attracting and retaining tenants, which in turn can help maximise rental income and capital growth. Regularly inspect your property for maintenance issues and address them promptly. Consider investing in upgrades or renovations that can increase the value of your property over time. 
  2. Bump up your rental income where possible: Increasing your rental income can have a significant impact on your overall returns. Look for opportunities to increase your rental income, such as by offering additional services or amenities, or by adjusting your rental rates based on market conditions. 
  3. Review your portfolio annually: Regularly reviewing your portfolio can help you stay on track and on target towards achieving your investment objectives. Review your investment properties annually to assess their performance and consider whether it’s time to sell or purchase additional properties. Use this information to adjust your investment strategy as necessary. We conduct annual reviews with all of our clients. We also do it at the end of a build to ensure everything has been finalised and is working. 
  4. Stay informed about market conditions: Keep up to date with market trends and conditions, including interest rates, demand for rental properties, and regional economic factors. This information can help you make informed decisions about when to buy, sell, or hold your investment properties. 
  5. Be proactive about managing your investments: Successful property investors take a proactive approach to managing their investments. This means regularly monitoring your properties, staying on top of maintenance and repairs, and being responsive to tenant needs and requests. 

By thinking in the big picture and being proactive, you can help maximise your returns and achieve your long-term investment objectives.  

Remember to regularly review your investment strategy and adjust it as necessary to stay on track towards your goals. 

  1. Put it in writing…

Keeping accurate records and maintaining an orderly paper trail is a critical aspect of property investment.  

By documenting everything related to your investments, you can ensure that you’re able to claim as many legal deductions as possible each financial year, which can help to augment your cash flow and improve your overall returns. 

Here are some tips to help you stay on top of your record-keeping: 

  • Create a separate bank account 
  • Keep receipts and invoices 
  • Record rental income 
  • Track expenses 
  • Review your records regularly 

By maintaining accurate records and keeping an orderly paper trail, you can ensure that you’re maximising your returns while staying on the right side of the tax office. So, take the time to document everything related to your property investments and stay organised and up to date to ensure your success in the property market. 

That’s it! You now know the three essential things you need to know before investing in property.  

If you have any questions or would like some additional information, feel free to contact me at leonie@wealthology.com.au 

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