Property investment in Perth is a great vehicle for wealth-building, but it can be even better if you follow these six steps.
Your property must attract good tenants
Good tenants are the backbone of any long-term investment strategy. To get them, you want a clean property with ample bedrooms, plenty of off-street parking, and in a “good” neighbourhood. Usually, this means quiet and away from the main roads, but still close to amenities.
Your property must increase in value
Almost all property increases in value over time, but you need to choose property that is positioned to provide maximum ROI. If your property is close to public transport, schools, the CBD, attractions, or beaches, it will acquire an immunity to down markets. Buy within the median price for the area.
Don’t buy “cheap properties”
If a property’s price is “too good to be true,” it’s because it really is too good to be true. Don’t shoot yourself in the foot looking for a bargain. Real, sustainable income is made by investing in good properties in top suburbs, and putting quality tenants in them while charging rent commensurate to the neighbourhood.
Instant Equity Builders
Immediately after buying a property, you can build equity by making renovations and improvements. Some are quick and easy, such as a new carpet, a new paint job, some landscaping, or installing new fixtures such as kitchen and cupboard doors, or blinds and curtains. For every $1 you spend you should aim to get $2 back immediately on value appreciation. When this compounds over a period of years, you are making a lot of money.
Refinance for emergency cash buffer
Once you build equity, you should pull some of it out by refinancing your property. This creates a cash buffer for you, in case you go without tenants or lose your job and need money. It’s a lot easier to borrow while things are going well than when you are struggling.Spare money call also be placed in an offset account so that you can save interest but re-draw the money whenever you wish.
Maximise your income with professional property management
Our property managers specialise in Perth and surrounding areas. We keep your house rented at current rates, and protect your investment by making sure it is properly maintained and attractive.
Call 1300 472 427 today.