There are four key things you can do to accelerate your climb up the property ladder. Investing in property can involve significant financial commitment and also requires regular dedicated time and effort. Before making your investment, it is worthwhile seeking the advice of a financial adviser and considering the following top tips that may help you climb the property ladder.

Location, Location, Location: Investing in an area where there is strong demand for rental accommodation may significantly increase your investment return. Besides rental return, you may also be looking for capital gain. If possible, try investing in an area that has already seen its downturn and may be ready for, or beginning, its next stage of growth. New developments or expanding regions can offer great appeal. These options may be attractive to young couples or young families and may often be associated with new infrastructure and amenities such as schools, park lands and shopping precincts.

Do your research: Regardless of whether you purchase a new or established property, it may be valuable to enlist the services of a professional building inspector. An authorised inspector will check for signs of termites, salt damp, and other inconspicuous damages which may be costly to repair in the future. Before purchasing an investment property, it may be worthwhile seeking professional realty advice to determine the appropriate rental price. Setting the rent too high may make it difficult to find a renter, while setting the rent too low may place you under financial pressure, limit your rental income and potentially attract unsuitable renters.

Consider a property manager: The experience and knowledge of a professional property manager may outweigh the cost of their services. Property managers are able to help find suitable renters as they have experience in screening prospective renters and have access to a database that lists renters with a history of defaulting on rental repayments, damaging property and eviction. As well as finding renters, property managers are able to ensure all the required procedures take place, such as conducting property inspections, collecting rent and liaising with the renter on behalf of the landlord. If you choose to self-manage your property, it may not be realistic for you to be able to attend to maintenance issues promptly. Delayed maintenance may lead to increased repair costs, poor professional relationships with renters and susceptibility to legal liability claims if the renter or their guest is injured.

Obtain appropriate insurance cover: A specialised form of landlord insurance may be something to consider, regardless of whether you choose to self-manage or appoint a property manager. A sound insurance policy should cover landlords for both malicious and accidental damage, their legal liability and the loss of rental income. A standard building and contents insurance policy generally won’t cover landlords for these risks. Check your insurance policy and seek professional advice to ensure you have the appropriate coverage.

We are recommending to our Renter Providers to consider obtaining a building inspection report on their investment property as an extension of our routine inspections.

Our routine inspections are inspections to report on the renter’s care and maintenance of your property and to detail any suggested preventative maintenance. As we are not qualified building inspectors, a building inspection report will detail preventative maintenance required from a builder’s perspective together with an estimate of cost. A building inspector will also advise if your property meets the constantly changing building compliance standards, particularly decking, stairs and hand rails which are fast becoming peak areas of litigation against property owners.

Our recommendation to undertake such a report is to minimise the potential of legal action being taken against you in the event of an accident, but it also helps to determine potential future costs. Addressing these potential future problems in the short term may save a major expense in the future.

A building inspection report is a modest cost compared to the cost of potential litigation or major repairs.

You may have owned an investment property for some time, but have you made sure that you have maximised the potential of your investment? This means not only achieving a market rent and consistent income flow by securing an excellent renter but also other factors that you may not have considered.

The sooner you efficiently monitor your investment property, the sooner you’ll be in a position to buy your next investment property.

Did you know that any property built after 18 July 1985 is eligible for depreciation benefits on its historic construction costs? No matter whether your investment is new or old, it will have depreciable assets that can be claimed such as air-conditioners, whitegoods, floor and window treatments, renovations and furniture, just to mention a few items.

80% of Australian property investors do not claim these legitimate taxation benefits which is a bit like not claiming the weekly rent from your investment property. This can equate to thousands of dollars in unclaimed benefits each year.

Claiming depreciation tax benefits can assist your cash flow to; pay off your principal place of residence; increase equity in your investment property or increase your cash flow to buy another investment property.

You may not be aware that the Australian Tax Office allows you to amend your previous four taxation returns to claim depreciation benefits so if you have been missing out, it’s not too late to do something about it.

The fee for a Depreciation Schedule is fully tax deductible. Simply call our office and we can make the arrangements for the tax depreciation inspection and report to be undertaken.

Building your property investment portfolio can be made easier by claiming legitimate tax deductions that you may be presently missing out on.

Securing a strong yield in rental income is the strategy of many property investors.

Strengthening this further doesn’t always have to rely on market conditions improving. Here are some tips:

Replace Appliances – replacing the tired old oven or stove or adding a new dishwasher always adds to the appeal of a property.

Adding security – ensuring that doors and windows have good key locks, and even adding a security alarm provides peace of mind and sense of wellbeing and safety. Renters can also receive a discount on their renter contents insurance if the dwelling has better security. This just adds to its appeal.

Refreshing the Property – adding a new coat of paint to the walls and woodwork, replacing tired or damaged flooring or making other improvements can increase the appeal of the home and can also increase its demand and rental asking price. Don’t forget your tax depreciation benefits when renovating. Speak with your accountant on this one.

Add Storage Space – Renters love storage space, especially when they don’t need to bring it. Installing built-in robes and cupboards that use space in a smart way and adding shelves in bedrooms or in the garage will make the home more attractive. Is there space under a staircase that can become storage space? Be creative!

Bullet-Proof the Garden – let’s face it, renters in general don’t like gardening. Therefore, a low-to-no maintenance garden will be attractive. Can the small lawn area be replaced by synthetic turf? Can gravel, stones or other landscaping material that looks attractive replace lawns and gardens? Can the watering systems be automated? Renters really do value convenience.

Street Appeal – prospective renters do judge a book by its cover so it makes sense to make sure that the cover looks great. Do the letterbox or fences need new paint or even replacing? Does the garden need a facelift? This doesn’t have to cost a lot to look great!