Keep your eyes on your goals … The Sydney property market is improving!
Investing in property should be considered a medium to long-term investment. The market will go up and down over the years, but a well-positioned and maintained investment property should appreciate in value while your tenants help to repay your mortgage.
However, when the rental market is tough for landlords, it can be tempting to consider selling your investment property. But don’t lose sight of your goals by focusing on short-term fears.
Here are some factors to consider:
- According to the latest figures from CoreLogic, Sydney property prices are on the rise so if you sell your rental property now, you may have trouble re-entering the market later.
- While rents have decreased, properties located in highly sort after areas have been minimally impacted.
Quality returns require quality properties
Carefully selecting an investment property is the key to weathering the ups and downs of the property market. Already, high quality rental properties are seeing an upturn in their overall value and are attracting good quality tenants. That’s why at Stills Properties, we offer complementary, pre-purchase investment inspections to help our landlords make wise rental property investments.
“Average” investment properties may see a slight reduction in overall value and lower rents for a little longer. As a landlord, it’s important to see this in context because it’s still better to have a good tenant paying less rent. The alternative is having an empty property and searching for a new tenant who is unlikely to pay any more than the existing one.
Here’s the good news. The Sydney vacancy rate is changing and some commentators expect the market to improve within the next 12 months. So if your investment property is vacant at the moment, consider investing in upgrades. It will make your property more attractive to good quality tenants.
The secret to success … Appreciate your tenants
Everyone likes to feel appreciated and heard. It’s the same with tenants. Successful landlords attract long term tenants by:
- Acting promptly when maintenance issues arise
- Engaging attentive property managers who speak with tenants and listen to their concerns
- Ensuring repairs and upgrades to the property occur on a regular basis because they increase the value and desirability of their rental property
Brigitte from Stills Properties has been a property manager for over 35 years. In that time she’s seen Sydney’s rental market go up and down. But the one constant that never changes is the care and attention she gives both landlords and tenants. That’s why she’s been in the industry for so long.