5 Things You Should Do When Buying An Investment Property

Owning a home is one of the greatest expenses most Australians will ever undertake. A popular trend at the moment for people who are struggling to afford their dream home is to look at an alternative home to own that they are purchasing as an investment property.

Some areas that we have identified that will help you get maximum bang for your investment buck include:

  1. Decide How To Manage The Property
    Your options here are working with a trusted Property Manager or managing the property yourself. Whilst the Property Manager is a monthly expense to your property, with their fees being a percentage of the rental price, the onus and time involved in the day-to-day management of the property all come back to the Property Manager.
  2. Reduce or Minimise Ongoing Maintenance Costs
    Minimise the maintenance required in the garden and other areas of the property. Whilst is it the tenants’ responsibility to maintain a property’s garden, most do not look after elaborate gardens in the same way that you would. This ultimately can turn into an extra expense for you to pay regular maintenance, or it can affect the value, look and rental income of the property over time.
  3. Get Good Insurance
    Make sure you look at all your insurance options and check that you are fully covered for damage and loss of rent. Whilst all landlords hope not to be in this position if you find your self with a problem tenant, adequate insurance, that includes covering loss of rental income can be a huge relief.
  4. Check Tax Deductions
    Your accountant should be able to advise you on what is deductible on your investment property. Where ever possible claim what you can. Make sure you keep records for every cent that you spend on your investment property. A paper trail is essential if you are wanting to make any tax-deductible claims for a property.
  5. Look Into Compliance
    Make sure your property is compliant, particularly water compliant, so you can pass on the costs of water usage to the tenants. Compliance also includes things such as smoke alarms and pool fences.