Now that we are starting a new financial year, it is the best time for us to know strategies on how we could help to manage our investments.
The five steps listed below can help you not only to increase your investment profit but to protect it as well:
Step # 1: Examine Your Loan Structure
The success of your rental property can depend on your investment loan and how it fits your current circumstances and needs. It is essential to make the most of all the features your loan has to offer to maximise it. You may opt to shift from interest-only payments to interest plus principal repayments or you may want to lock into a fixed rates payments when rates are lower.
Step # 2: Be Engaged
You should have the initiative to visit your property and personally inspect its condition, as well as how the local neighbourhood is shaping up. You check if your property is being maintained to your standards, and if it needs to undergo some professional repair and maintenance. You may also consider selecting a new property manager, who would be in-charged of the administration of your property.
Step # 3: Find ways to Upgrade Value to Your Property
By renovating or improving your property, not only can you retain a good current tenant but also boost market value of your property. Applying a fresh coat of paint or even upgrading fixtures can potentially increase the rental return.
Step # 4: Review your Rental Return
You can discuss increasing your rent with your property manager, if the current lease on your rental property is coming up for renewal. Maximise the returns of your asset however be careful not to lose a tenant if there is a high rental vacancy rate in the area.
Step # 5: Equity on the Move
Residential property values across our capital cities have increased almost 10% over the past year, as per CoreLogic RP Data. Noting this fact, you could have more equity in your rental property that you can further invest to grow your investment profit and wealth.
Want to know other strategies on how you can grow your investments and wealth?
Talk to us and we can discuss how we can maximise and manage your investment.