When it comes to investing in property, you may feel intimidated. You may be concerned about costly mistakes and you don’t want to have regrets down the road. Avoiding these common errors can help you to feel more confident about property investing.
Not Increasing Rent over Time
You may have an existing tenant that has been with you for years and not bothered to increase the rent. Each time the lease is renewed, whether this be with the existing or new tenants, it is definitely worthwhile to re-assess an increase of rent. This will compensate the issue of inflation.
Not having a buffer to cover Repairs & Maintenance
When you lease your investment property, you are responsible for the cost of the maintenance and repairs of that property. Make sure you budget for this as the cost of repairs or replacing appliances can be expensive. You never know when that hot water service will blow!
Right Investment Structure
When you invest in property, it is crucial to purchase it in the correct entity as it can be expensive to change this later on. Be aware of the different structures and pros and cons of each. Options include; your personal name, joint names, a family trust, superannuation fund or other legal entity. Seek professional advice from an accountant or lawyer.
Our Approach As Real Estate Agents
At Barnett Real Estate, we focus on combining our extensive experience, innovative approaches and specialised knowledge of the Geelong real estate market to achieve the best results for our clients. If you’re interested in investing a property in the Geelong region, call us today on 03 5222 1488 or contact us online for more information.