Landlords know the pain of high vacancy rates. They will do all that is within (and even beyond) their means to ensure that their properties are good on rent. After all, a smart rental return is a guarantee of a positive geared property and you would surely not fetch such returns if the property is vacant. This said, I have seen investors not spending much on the facelift of the property. They are wary of over-capitalising and in the process end up doing so little that the rental returns are jeopardised.
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Hows to Ensure Substantial Capital Growth?
If terms such as rental rates, rental returns, and rental yields populate the top of your mind you aren’t a capital growth-centric investor. However, let me believe you are and that you want to use capital growth to create equity for easing out the purchase of new properties (of your portfolio).
How Does Transport Infrastructure Impact Your Home’s Value?
What happens when population increases and petrol prices rise? Strictly in terms of transport, the cues are distinctly clear. More population means more vehicles on the roads and this implies further congested roads. Rising petrol prices would imply vehicle-owners’ penchant for driving for lesser hours- not possible in congested roads. This clearly illustrates why transport infrastructure is such an important pillar of the economic growth.
DIY Operations By Tenants is A Bad Idea
Sometimes when a landlord rents out to relatives or friends or becomes really friendly with the tenants, he may get carried away and say yes to requests like, “Can I make a moderate change in the bathroom fixtures?” or “Can I work on the attic vents a little?”
Negative Gearing May Not Be a Lucrative Strategy
Are you a lobbyist of negative gearing or a devout follower of positive gearing? The much talked about; hotly debated strategy of the property market- negative gearing- relies on capital growth. In times when the market runs through the course of several cycles without exhibiting substantial capital growth, the very idea of negative geared properties can fall flat on its face. This, though, is not the entire problem. Let us probe the issue further.
A Cheap Purchase Is Not Always a Bargain Buy
The really cheap properties are not necessarily bargain properties. A bargain buy (while there is no strict definition) is one that you purchase a lot below-market rate for the purpose of living or reselling. However, unless you can derive some real profit from the purchase, it won’t be called a bargain purchase and may remain only a “cheaply bought” property.
