In our very first episode, Dr Andrew Wilson Domain's Chief Economist will be providing us with a brief market update. We also discuss some of the Pros & Cons of Granny Flats, investing in off the plan properties and then finally a quick update on this month’s cash rate announcement.
For most residential real estate investments you can borrow to buy an investment property with a typical deposit (or surplus equity in another property) of 20% of the purchase price. While you can borrow more than 80% with some lenders, you need to factor in higher interest rates, lenders mortgage insurance and higher risks of larger mortgage payments.
Granny flats have become more popular with investors in recent years as a way of increasing their capital gain and rental income. These dwellings are self-contained on the same block of land and are secondary to the main property. A granny flat has its own entrance, kitchen, bathroom, bedroom, laundry and so on. Building a secondary allows you to receive dual rental return off your property for a smaller investment and can be very beneficial if done correctly.
You get one chance to make a first impression and you’d be surprised at the seemingly insignificant things buyers can notice which can break the deal. A property should be presented as having been well looked after with no major issues. There are a whole range of things you can do which don’t require a lot of work or money to make your property look great.
There are many myths and misconceptions thrown around when it comes to property investment. Believing these property investing myths and making purchasing decisions because of them can increase your exposure to risk and affect your ability to build a profitable and sustainable property portfolio. So here are some common property investment myths that you need to be aware of in order to help you plan a successful property investment strategy.
Property investors looking to have long-term tenants and receive good rental returns from their investment property need to ensure the property is desirable to tenants in the area. You can dramatically increase the property's desirability and increase the rental intake by spending some time and money on the presentation and maintenance of your property. This should provide a good return on investment in the long term.
If you are considering managing your own investment property here are 7 useful tips you need to be aware of so you can maximise your rental return and ensure you get the best possible tenants.