10 Tips for Stress Free Investing

Looking to invest in Canberra? Like all astute investors you know the next important step is choosing the right agent.

Here are our top 10 tips for stress free property investment.

1. Have a buffer

Just in case there is an unexpected expense, have 2 months mortgage payments always sitting in an offset account.

2. Depreciation Schedule

Have a professional quantity surveyor do your depreciation schedule to ensure that you are maximising your legitimate tax deductions on your property investment.

3. Make sure you’re insured

Have landlords insurance which covers owner’s contents which are not covered by building insurance, such as carpets and window furnishings. It also covers loss of rent, malicious and accidental damage by tenants, plus public liability.

4. Choose the Right Property Manager

Deciding which property manager look after your property is as important as choosing the right property. Saving a few dollars a week by picking a cheap agent is often a very bad decision.

5. Proactive Maintenance

Staying on top of maintenance pays big dividends. It enhances your capitol value, the property attracts better quality tenants and those good tenants are likely to stay on.

6. Approve Maintenance Straight Away

There is nothing to be gained by delaying property maintenance once it’s been identified.

7. Don’t Have A Relationship With Your Tenant

Stay away from the property and don’t get involved with the tenant. Your property manager is paid to be the shock absorber. Tenants will always try it on if they know the owner.

8. Market Rent

Unless the vacancy rate is less than 2% set your rent at 95% of the market rent, this measure alone reduces vacancy, gives you wider range of tenants to choose from and they are more inclined to stay.

9. Don’t Rent to Family & Friends

Owning an investment property is a business decision. Renting to family and friends often results in heart ache for the property investor.

10. Buy Another Investment Property

Once the equity has built up look at buying your next investment property.