The market is different for property investing post-GFC and it is important to take well calculated steps in order to increase return on investment for properties. The key is to learn from the past and not get caught up in a bubble again. Some tips to make the most out of the property market is:
- Choose Property Attractive Tenants: Ensure that the property would be attractive to renters and guarantee income stream.
- Property with Growth Potential: The property should be oriented in an area close to CBD, beaches, schools, or public transport to ensure that it is valuable.
- Buy Blue Chip: Buy a property that is in demand. Attempting to save money by buying a cheap property could only end up costing you more in the long-term because demand will be low.
- Create Instant Equity: Perform quick renovations on the home to increase value
- Refinance: When the property grows in value be sure to refinance to create an emergency buffer zone. This will ensure you can continue to make mortgage payments.
- Resign Tenants: Hire a professional property manager to ensure ou get reliable tenants that will pay rent on time. Also consider a long-term contract with your tenants.