ARE YOU SWIMMING NAKED?
When JobKeeper finishes and mortgage repayments unfreeze, the tide will go out and we can see who is swimming naked.
As an investor, you should always have a buffer to help you during the tougher times.
Having had a great deal of experience with investors who do not have any buffer or cash flow plan in place, I can’t tell you enough how vital it is for investors to consider the impact should the property become vacant for several months. A solid plan will ensure the viability of the investment property.
For all of you considering a purchase of an investment property, here are some tips to :
1. ENSURE YOU GET YOUR PRE-APPROVAL IN PLACE
Good properties go fast – even when market conditions are slow! A good agent can tell you the hallmarks of a good investment property and, when you do your numbers right, you’ll need to act fast to get the best deal.
2. LOOK FOR PROPERTIES THAT ARE IN GOOD CONDITION
Managing an investment property can become a money pit if you don’t do your due diligence. Newer or properties in good condition will translate to less funds spent in the short to medium term – and more cash in your pocket.
3. SOURCE A LONG TERM TENANCY
A good property manager will help you source good tenants and allow you to get a feel for them. When you find good tenants, lock them into a longer term tenancy. You won’t regret it!
A property purchase of this nature is a long term investment – look down the road, buy well and it should be worth your while.
– Tracie Harrington