Notices
Maximising Net Return On Investment Property
25 Aug, 2008
Maximising Net Return On Investment Property
In the midst of housing affordability issues and rental increases, effective management of current assets is more important then ever. Managing a rental property successfully comes with both inherent threats and opportunities. Here are a few tips:
Setting the optimum rent for maximum return - Optimum rent is not just asking as much as you dare and waiting for a tenant to bite; it is the careful analysis of what price will deliver the highest price and quickest letting. Many an unwary landlord has stubbornly held out for a higher rent only to have the property lie vacant for many weeks and then, in most cases, having to reduce the rent in the end anyway.
A good tenant is worth their weight in gold - Often a reliable tenant who cares for your property and pays the rent on time is worth more to you than a rent increase. Time and time again inexperienced owners let a good tenant go just to chase a few extra dollars a week, only to realise some time later that rent defaults or lateness, property damage, court proceedings, unpaid bills etc, can quickly surpass any notional rent increase ...all the while doing your head in.
Leave it to the experts - If you are not highly experienced in property management nor have the time to devote to the process, chances are you are risking a great deal handling the property yourself. Property management fees range from 6% - 9% per annum of the annual gross rent return, plus a one-off letting fee for the duration of a lease (1-2 weeks rent). All these costs can be fully tax deductible against the investment. Experienced property managers often comment that good property management pays for itself.
Michelle Michell, Director of Elders Sylvania says, “inexperienced management of a rental property is fraught with danger, as misjudging rental or the law, and leasing to the wrong tenant, can be financially and emotionally disastrous”.
Successful property managers have:
1. An in-depth understanding of the Residential Tenancies Act and how the law applies to you and your property.
2. An extensive and current understanding of the rental market.
3. Innate people skills and perception.
4. Advanced negotiation skills.
5. A comprehensive database of reliable and skilled tradespeople.
6. Access to a national tenant database, which provides invaluable insight to potential tenants. Only licensed agents can access this database.
Michelle Michel, Director, Elders Real Estate Sylvania, 0407 212 755, 02 9522 6999
Thinking Of Selling ? We Have Qualified Buyers Waiting !!
22 Aug, 2008
Selling ?
Waterfront Buyer - Caringbah to Burraneer upto $2m
Waterfront Buyer - Sylvania Waters upto $2.5m
Waterfront Buyer - Kangaroo Point $2m to $3m
Waterfront Buyer - Kangaroo Point upto $2m
Waterfront Buyer - Sylvania/Kangaroo Point, Sylvania Waters $3m
Buyers Looking For -
Luxury Home - 4 bedrooms, multiple living area, views $2m
Houses - Modest home to renovate $1m
- Family home $800,000
- 1st home buyer $500,000 (main road ok)
Townhouses - Waterveiws and 3 bedrooms upto $800,000
Villa - 3 bedrooms and level walk to Shops $600,000
Apartments - 3 bedrooms and 2 bathrooms $500,000
- 2 bedooms near shops $300,000
We Have Plenty More "Cashed Up' Buyers and Need More Properties To Meet Buyers Demands.
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