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Why is it that so many people do not buy an investment property? Why is it also, that many investors only have 1 property in their portfolio. Whilst Sydney and Melbourne have just about reached their peak according to many experts, Brisbane still rema
|Firstly, some people are fearful of making a wrong choice. Many factors can affect these types of people even though they have usually done extensive research. Fear of something better coming along, fear the market will turn and fear of the unknown. These are not valid reasons not to invest in property. As always, if due diligence is followed and your research is valid, then it will be a good investment. There will always be better properties come along even immediately after you buy, however if you follow the correct criteria, your property will perform perfectly well.|
Secondly, the banks are currently changing their lending value ratios for investment loans. Some would be investors might think that they do not have enough equity, however until you speak with a property advisor or mortgage broker you might be underestimating your current worth. Whilst trying to save more money for a larger deposit, an investment property could be working for you in reaching a better outcome for your hard earned cash.
Thirdly, many people hear the horror stories of the trashed investment property costing the owners a lot of money. Whilst the current affairs programs are responsible for sensationalizing these stories, the incidences of bad tenants destroying homes are few. The key to mitigating this worry is to engage a reliable and honest property manager from a reputable property management company. Most real estate agencies manage their sales teams very well however treat their property management department as an unfortunate by-product of selling to an investor. HomeRentals Queensland only uses qualified and trustworthy property managers and only looks after residential investment properties throughout greater Brisbane and surrounds. Another tool to mitigate the worry of the bad tenant is to have the best landlord's Insurance. There are many companies, but only a few who specialize in this type of insurance.
|Fourthly, affordability can be an issue for some investors. Investment of any kind carries some inherent risk and property investment is no different. Loss of employment or income can weigh heavily on some people so they never take the risk and hence never achieve financial security. There are a number of ways to reduce this risk. Reducing the "Loan to value" LVR ratio so that the mortgage repayments are smaller can be helpful in keeping payments to an affordable amount. Looking for positively geared properties or at least neutrally geared where the rent pays the mortgage is another way, whilst taking out loss of income protection insurance which guarantees your income is also another.|
Interest only loans will keep repayments to a minimum whilst a PAYG withholding variation application will give you extra monthly income by reducing your tax and help you meet mortgage repayments.
Lastly, some would be investors are worried about the cost of maintenance that a particular property will generate. Whilst it is true there is upkeep with any investment property, due diligence when buying and correct budgeting will mitigate this worry. A good property manager is a valuable asset in not only providing a property management service, but can also assist the investor in identifying what is and not acceptable for a tenant with regard to current legislation.
As can be read from the above statements, a great property manager can easily help ease many of the problems that can be associated with owning an investment property. We are here to assist so give Chris a call on 0403770035 where she will always endeavour to help. Remember, our portfolio of properties covers the greater Brisbane area as well as sunshine and gold coasts.