We are all looking for the best way to invest our wealth so that it grows and rental properties are a popular choice for many reasons. People will always require rented accommodation and the right property in the right location would allow you to collect top rent prices.
How smart is the rental property investor?
Well, what’s not to like about you buying a house and someone else paying the mortgage? Basically, that is what happens when you get into rental property ownership; in theory, it has to be a winner; at the end of the mortgage, you own the property lock, stock and barrel.
Property management company
Unless you are a little crazy, you outsource every aspect of the rental operation; from screening tenants to carrying out repairs; your choice of property management company is critical and they can handle everything on your behalf. After a couple of years, if all is going well, you could acquire another property and so on. The potential is unlimited with rental property and with an established property management in your corner, all the stress is taken by your partner.
Building maintenance
When you need a plumber in Sydney for your rental property, the property management company has you covered. They offer a 24/7 service so any emergencies can be promptly dealt with and a maintenance schedule is created to ensure your tenants are happy.
Legal hotline
As a landlord, you have many responsibilities and there can be issues with tenants; when you join forces with a leading Australian property management provider, you have round-the-clock access to legal experts. Most tenants are very well-versed with the law and you should seek legal advice prior to responding to any tenant query.
Taxation
Of course, the government wants their share of just about everything and by hiring an experienced accountant, you can minimise the tax you have to pay. Many expenses are deductible, and your accountant knows how to factor these into your returns. If your business is in need of heavy plant hire, click here.
Write a business plan
Calculate a budget for real estate acquisition, then work out the cost of getting the property ready for occupation; factor in all your expenses, then take a look at expected rentals and you should be able to work out a profit. Writing a business plan helps you to gain a deeper understanding of all the factors and it also makes you face all possibilities. You should work out a projection for years 1 through 5, showing expected revenue and expenditure. Click here for information about rental property taxation.
Seek financial advice
Unless you are 100% sure that rental properties are right for you, consult with an experienced financial adviser and let the professional help you make all the right decisions. If you have the funding and mortgage approval, everything is possible.
