“Save money,” they say. “It’s easy,” they say. “Anyone can do it,” they say. On the face of it, ‘they’ appear to have a point. On the face of it! Scratch the Investment Property surface however and there’s a whole untold story behind those glib statements.
Time is Money
At Stills Properties we get it – property investors want to make money, not spend it. But how valuable is your time? The old adage ‘time is money’ never rang more true than when it comes to managing your own investment property, because how much of your family time are you prepared to commit to:
* Dealing with late-paying tenants?
* Evicting a bad tenant?
* Finding a new tenant when the current one leaves?
* Performing regular property inspections?
* Organising necessary repairs?
* Keeping up-to-date with applicable legislation?
Landlords – consider the pet-friendly route to a 10-15% rent premium!
If you have an investment property then you have an interest in the real estate market. If you have an interest in the real estate market then you’ll be fully aware of changes in recent months. The long-running seller’s market suddenly switched to a buyer’s market with prices sliding steadily over a few months.
A buyer’s market in sales translates to a tenant’s market in rentals. The pool of potential tenants decreases as more people opt to take advantage of falling prices and buy their own home. Add to this the enormous number of new apartments going up everywhere you look and supply is beginning to outstrip demand by some margin. Tenants have more to choose from and they’re becoming more selective and demanding.
The number of Australian’s renting is officially on the rise. While this is great news for residential property investors, it’s not the only thing heading north.
In recent years, tenants who are illegally subletting to strangers, especially tourists and holiday-makers has increased at an alarming rate, leaving the property owners exposed to a range of risks and costly consequences.