Property Investment Tips 2022

Dilleen Property Group 2022

So, your interested in investing in property?

Following the post-pandemic boom, the Australian property markets have been on the rise for some time now. More and more Australians are entering the market and becoming property investors, you may already own a property or a few, or you may be looking to just get started now. Being a first-time investor can be daunting. Even if you already own a couple of properties, but may not be getting the return you expected, it can get frustrating, you may not know where to go from here.

It’s important to know a few things before getting started and continue educating yourself throughout your investment journey. Minimising your risks, getting your finances sorted and implementing the right strategy are some of the essential facets to get right.

Today, I’m going to refresh your memory with some useful tips you can use in 2022 as a landlord.

Tip 1: Make sure you have your finances in order. It’s important to have a buffer in place when purchasing an investment property in case of unexpected expenses such as repairs, vacancies, job loss etc. I would recommend coming up with a figure that you would need that if everything went south, you would still be able to continue life as normal and have enough time to get things back on track. This buffer will ensure the stress and anxiety is reduced while dealing with expectancies. The figure will depend on your circumstances; however, this could range from $5,000 - $20,000.

Tip 2: Engaging a buyer's agent is going to ensure that you get the right property based on your situation and goals. They can also be extremely useful if you are time poor and don’t have the patience to do the research yourself. Having a buyer's agent on your side is going to ensure that the property you are purchasing ticks all the boxes and works well for you. Instead of going in blind, a professional can help ease your mind and reduce the stress of sourcing a quality property. Not only this, but a buyer’s agent has access to properties off-market, meaning you cannot access these on domain or realestate.com, etc. the great thing about this is that most of the time properties like these are below market value.

Tip 3: If you’re going to be an investor you want to make sure you have a good landlord insurance policy. I only recommend Terri Scheer as they are the most comprehensive. I personally went through a tough situation with an investment property that got trashed and ruined, however thank God my insurance policy was there to get it all sorted out, it’s all back on track now and I can pull some equity out of that property to purchase another. However, if I didn’t have landlord insurance it may have been a different story.

Tip 4: As a landlord, you must have a good property manager. If you are investing interstate, which is a huge concern for people who live in New South Wales if they're investing in Queensland. Having a solid property manager looking after your tenant, making sure the tenant pays on time, doing the inspections, your leases, etc. on the back end is going to make your life a lot easier. If you're thinking about managing your own property, even if you live next door to it, I wouldn't recommend it because it's not worth your time. Even if you save $10 $20 or $50 a week by managing it yourself, it’s not worth the headaches with your tenant or the legalities. You are much better off getting your property manager to deal with those potential stresses.

Doing your due diligence, having systems in place, and keeping on top of things as a landlord can make a huge difference to your investments and how they perform. These 4 tips are some of the essential things you should keep in mind when purchasing your next investment property.

Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.