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6 tips when buying your first investment property
SO you’re taking the plunge and buying your first Investment Property!
Many first time investors can make mistakes because of their limited knowledge of managing an investment property, so Baxton Property Management compiled a list of 6 Do’s & Don’ts to help you maximise the return on your Investment Property.
Baxton’s top 6 do’s and don’ts
Don’t become emotional
Investing is about facts and figures. Don’t be blinded by what you see, as there is beauty in the ‘numbers’ which means make sure it stacks up on paper first. Contemplate the reality of investing in a property that you would never consider living in yourself.
Formulate a strategy
Too many people get into property investment as a hobby and end up in considerable debt. Formulate a detailed investment strategy and business plan. Make sure you speak to someone who is already a seasoned investor with multiple properties. Their advice will be invaluable. Consider speaking to two or three investors and consider the strategy of each to establish a risk profile that you agree with.
Keep up with repairs and maintenance
A lot of new landlords think that the best way to make money is not to spend any on the upkeep of their property. Minor renovations can add significant capital value and increase your rental returns. Maintenance keeps you tenants happy and your property in a liable condition, which helps the intrinsic value of your investment and its associated cash flow.
Don’t befriend your tenants
Always maintain an arm’s length relationship, when dealing with your tenants. If you are considering Self Managing be aware of all of your responsibilities. Otherwise investigate a professional property management firm such as Baxton property Management, to ensure your property is properly managed and maintained.
Conduct Rent Reviews
Research the market for commensurate properties annually, to make sure that you are achieving the best possible rent returns for your investment.
Get a professional depreciation schedule
There are numerous items in a rental property that can be depreciated at a certain rate allowing you to claim a tax deduction.
When you understand the rules of property investment, your portfolio will generate capital gains in the long term and put you on the path to successful wealth creation.
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We hope you enjoyed this article
The information contained in this article is based on the authors opinion only and is of a general nature which is not indicative of future results or events and does not consider your personal situation or particular needs. Professional advice should always be sought relevant to your circumstances.
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