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Understanding your motivations for buying a rental property to maximise your profit.

By Mike Henderson / March 10, 2016 / Share:

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What’s your type?

Money in the bank is nice, but money that’s making money can’t be beaten! If you’re considering an investment property, understanding your motivations is pivotal – both to purchasing the perfect investment, and renting it out according to your goals.

Begin with some crystal ball gazing…

Where do you see your investment property in 15 years’ time? Has it become merely one of many in a vast portfolio? Are you happily living in it having downsized from the family home? Has it been cashed up as a tidy little investment nest egg? Or perhaps it’s now the perfect starter home for your son and daughter-in-law with the baby on the way? Download our eBook "My House. My Castle." to get to the bottom of your motivations for buying an investment property. 

 

Now exchange that crystal ball for a notepad…

Based on the brief glance into your future, it’s likely you understand a little more about the underlying factors lighting your investment fire. Use these to make a list of property must haves. For example, if you are the straight up money maker type, you’ll be looking at rental yield and limited maintenance in a desireable area. If you’re hoping to cash it up, perhaps you’ll want to investigate future development plans and property appreciation in areas you can afford to buy to maximise capital gain.

Great, so once you’ve decided what you’re looking for, and made the investment in your rental property, you’ll be thinking ‘roll on rent payments’. But hold up, there. The next thing you’ll need to know is how much you can charge, and how to select the tenant that ticks the boxes.

A little further in the future, exchange the notepad for action.

For example, take these steps to figure out what you can charge:

  • Request an obligation free rental appraisal, or do your own, by browsing similar rentals online to compare amenities and location versus weekly rents.
  • Look at any unique selling points of your property compared to similar advertised properties. For example, if your property has a great outdoor area or fabulous new kitchen, you’ll want to highlight this in your advertisement.
  • To appeal to the largest number of potential renters as possible, give your property a once over – check EVERYTHING is in working order, clean and presentable (inside and out).

 

Do you also know the 3 essential tenant checks to keep you safe from nightmare renters?

My-house.-Your-castle.pngFor these and more on channelling your motivations in the desired money making direction, as well as expert ‘how tos’ – download our free eBook “My House, Your Castle”. And learn what it takes to go from property mogul pipedream to fully fledged investor. 

 

 

Topics: Property Management

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