Investing is a wise choice and can help you enjoy a hard earned retirement taking some of the uncertainty of whether the Pension will be there or our Superannuation will cover it. A recognized sound investment can be property.
One mistake first time investors often make when starting out in the property investing route is thinking that once they’ve purchased the right property, they’re already free to sit back, relax, and wait for profits to fill their wallets. However, it’s not really as simple as it seems. Choosing the right investment property is only half the battle; the other half involves establishing measures to protect their investment property. Managing that investment can ensure a “better return” on that investment property.
Factors such as economic challenges, tenanting problems, and the structural integrity of a property can affect the profitability of an investment. That’s why it’s essential for investors to take steps to manage their investment properties and protect from such risks. To mitigate these risks and ensure that you are getting the most from your investment, below are a few ways you should try to safeguard your property:
1. Find good tenants or employ someone who can find them for you – Whether it’s a commercial investment property or residential property you own, finding the right tenants for your property is simply a must. The right tenant would ultimately be someone who has the capacity to arrange the rental payments in a timely manner, and who will take care of and keep the property in good condition as if it were their own. To do this, it’s important to screen and investigate prospective tenants carefully, and look into their income, references, and rental history. This is where we can offer assistance.
2. Keep an eye on the market –Like any investment, real estate also has its ups and downs. Observing the trends in the market will help investors prepare for market challenges and devise strategies to safeguard their properties and prevent losses. We can help with what to look for.
3. Set aside an emergency fund – Keeping extra cash on hand is also essential so you can be prepared for unforeseen expenses that aren’t covered by your insurance. Your emergency fund can help cover quick repairs or replacements, vacancy, and other costs. Some financial experts would advise to set aside at least 10-20% of your property’s value for your emergency fund. “Looking ahead” is what we aim to help you do.
4. Get landlord insurance – Renting out one’s property offers numerous benefits to investors; one of the most obvious benefits is receiving a steady stream of income for months or years. But various factors, such as fire, flood, and storm damage, and tenant default payments, can serve as threats to your investment. Thus, to get peace of mind, protecting yourself by obtaining landlord insurance is highly recommended. Landlord insurance provides financial security to property owners in the event of accidental or malicious damage, theft or default in payments caused by tenants. Nevertheless, it’s important to understand that not all insurance may offer the same coverage, so it’s wise to be prudent in shopping for the right insurance. We have experience to offer here.
5. Enlist the help of professionals – Teaming up with experienced property mentors and real estate professionals, like our team here at Investment Property, is valuable, especially for first investors, and also for seasoned investors who want current information as we will make sure that you are provided with sufficient information to make wise investment decisions. Not only will you be guided on how you can grow your investments, you will also learn how to protect your investment best – by buying wisely from the start.
All kinds of investment come with risk – even investment property. Identifying risks and taking proper management steps simply help you get the most from your investment properties. We encourage you to talk to Investment Property today and discuss with us how you’d like to attain your investment goals.