When you’re buying, selling and renting properties, you’re most likely not going to become an overnight millionaire, but you can create a sustainable, long- term investment portfolio by following a few steps to ensure your success. Here are our three key steps for property investing success on the NSW Central Coast.
Identify Your Strategy
As you establish and build your property portfolio, you need to know your strategy. Are you looking to generate consistent cashflow with one or more investment properties in a particular suburb or across the Central Coast to rent to long term tenants? Maybe your expertise is more aligned with capital growth and renovation projects? Knowing your answers to these questions is crucial before you buy and sell properties.
Once you’ve identified what strategy suits your goals, your risk appetite and your preferred Central Coast suburbs, think about where you’re likely to come up against challenges. This may include things such as access to capital, a lack of equity in your current property and your borrowing capacity. As you identify what challenges you’re likely to face, draw yourself a roadmap or talk to a professional who can help you navigate any roadblocks that may come your way.
Only Buy the Right Properties
You may come across a property that you love in a great area, but if it doesn’t fit into your long-term investment strategy, it’s not worth buying. To make sure you’re finding the right properties, ideally before they’re on the market, talk to real estate agents in the Central Coast suburbs where you’re looking for property. You also need to make sure you’re not just analysing the whole Central Coast property market, but each suburb to understand recent sales, vacancy rates and rental yields. This will help you to have a logical, methodical approach to your investing. Put simply, if the property doesn’t fit your pre-determined strategy, you don’t buy it.
Have Effective Management Processes in Place
It’s tempting to hand an investment property over to your property manager and forget about it — you’re getting your regular disbursements, and they’re managing everything else. What’s not to love about that? However, you need to be proactive in managing the property, especially when it comes to major repairs and maintenance. To do this, talk with your property manager at Home Specialist Property Management (HSPM) about a schedule for routine inspections and quarterly and annual jobs such as pest control and clearing rain gutters. They may seem like small tasks now, but they’ll be much bigger to deal with, and potentially cost you a lot of money if you’re not staying on top of these things at each property.
Whether you’re just getting started with property investing, or you’re a seasoned investor, these steps will help you to build a sustainable property portfolio with long-term profitability. As always, before you make any major investment decisions, property or otherwise, make sure you consult your trusted legal and financial professionals and book a chat here with a HSPM consultant for effective, quality property management.