Getting rich is not easy, if it was, everybody would do it. For most there is the idea that to make money you have to have money to start with. But that isn’t always the case. There are ways of investing that work from a low base and the best idea in this regard is property. If you can qualify for a loan you can secure yourself an investment property (or two), and, if you play your cards right, you can watch the cash roll in from there. But, like we already said, it’s not necessarily easy. To help, here’s our list of pointers to help you grow your property investment portfolio.
Don’t try to do it all yourself
It’s one thing to own a property that you rent out; it’s quite another thing to manage that all by yourself. There are plenty of experts who can take care of the details and you need to make sure that you work with the right ones. It is not just about size and scale; it’s also about reputation and local knowledge. Use building management Sydney to find the right people. Search for something like facilities management Parramatta if that is where your property is and you will quickly find the best options. Companies that can handle maintenance and rent collection and even look after finding your tenants make it a whole lot easier for you to get on with life and not worry about the day-to-day operations of your growing empire.
Have a strategy
It might sound like an obvious thing to say, but when you are investing it is important to have a strategy. Are you looking for capital growth, or for monthly rental income? Are you speculating or do you envisage growing a portfolio over a period of time. There is no wrong strategy, and what works for one person might be completely wrong for another, the important thing however is to have a strategy. As such, every time an investment opportunity presents itself you can weigh it up in terms of your strategy and make a rational rather than an emotional decision.
Profile the ideal tenant
There is a certain element of risk associated with investment properties because you don’t live in them yourself. You have a very valuable asset that is occupied by a stranger or, even worse, multiple strangers. There is a lot of room for things to go wrong. So know the type of person that you want to have staying. Credit checks are important, but so is an understanding of the person’s trajectory in life. As a rule you want a person who is on the up. Maybe somebody who comes from a working class background who has struggled to get to where they are – but a person who has struggled and won and a person who will appreciate the opportunity of staying in your prized asset. That’s a much better tenant than one who comes from money but who has fallen on hard times and is on the way down. As good as this type of tenant may look on paper, they are not used to struggling and they will arrive with a certain air of entitlement – they can be very difficult people to work with.