How to make the most out of your investment property
Owning an investment property is a huge boon for anybody - providing you with a secondary income that can bolster your wealth well into retirement.
However, if not managed correctly, an investment property can easily become a detriment to your finances, having the reverse effect of what is desired.
But by taking into account some important considerations, you can ensure that your piece of real estate will continue to be a profitable purchase with high returns.
While renting out a property can provide you with a regular source of income, it is important that you don't completely rely on these finances. Always ensure you have some sort of nest egg to cover you financially in the event that you aren't collecting rent, property damage, or economic changes such as interest rate increases.
Maintaining a property is vital if you want to attract tenants and get the maximum returns on your investment. By ensuring a house is well-looked after and in good condition, your chances of attracting good, long-standing tenants will be greater.
Seeking the services of an experienced real estate agent can help you manage your investment property - conducting regular inspections and finding suitable tenants on your behalf.
Landlord insurance specialist Terri Scheer Insurance recommends that every investment property owner should have a "risk management plan" in place to prepare for the unexpected.
"Damage by tenants, loss of rental income and legal liability issues are just some of the risks faced by landlords that could be very costly," Terri Scheer manager Carolyn Majda said in a News Limited report.