Managing your own investment property could have its advantages and disadvantages. What a landlord like you should keep in mind, however, is that saving money is not always the best option. Sometimes, it could cost you much more in the unforeseen future. So, here’s a list of advantages if you hire a property manager.
Archives
Why Your Property Investments Are Doing Badly
It’s a fact that investing isn’t easy, especially for those who are afraid of taking risks. If you’re an investor, you might be interested in what Michael Yardney, director of Metrolpole Property Strategists, says about the reasons why your investment is doing badly. Yardney highlights the 10 most common mistakes newbie investors make that regularly result in losses. He also indicates how pro investors overcome these mistakes to accumulate profits.
There are no fixed rules on how you can succeed in property investing however there are some valuable advice from those who succeed. Although you can’t emulate all the things that they do, you can have a basic understanding of how the world of investing works. It’s part of the process to commit mistakes. Whether it’s a few dollars worth of mistake or a thousand dollar worth of mistake, the only thing that matters is the lesson you’ll get from it. Once you know what won’t work, try something else. Never stop trying and learning. Just be sure you minimize the risk of failure as much as possible.
You can read the whole article here.
As a property investor, what advice would you give a newbie investor today? How do you take good care of your property investments?
Population growth should bode well for the Australian housing market
Australian population is growing at a good rate and it augurs really well for real estate. Macroeconomics suggests that population growth is always a key indicator for the property market. For an year upto September 2012, the population spurted by 1.71%, says Michael Yardney for the Property Update. This is much higher than the 30 year average of 1.4%.
Whether or Not to Furnish Your Investment Property
Carli Ziri, the director of Lifestyle Property Agency, is frequently asked by his clients whether to furnish or not to furnish the investment property they just bought. The choice actually depends on the investor’s preference. However, Ziri points out that before making a decision, you need to compare which of the two choices is more beneficial.
Most tenants would want to rent a place that they can customize to suit their taste. Also, furnished properties tend to have shorter lease terms, so you have to consider the money you’ll lose due to vacancy, maintenance, and extra agency fees and the premium you’ll receive. However, if you’re planning to use your unit between tenancies, then it might be better for you to furnish your investment property.
You can read the whole article here.
Five Unforgettable Investing Lessons
When times are good, we start exercising selective memory, obliterating anything bad that had happened to us. This may not be a good idea. Michael Yardney for the Property Observer says that we will do well to learn a few things from the last property downturn. Let us talk about the five property investing lessons Yardney talks about:
Mortgage borrowings close to peak years
Doomsday predictors are never short on work- after all, rumour mills work overtime. However, those who have predicted a crisis will only agree that the real estate market is going strong, quite strong. People are still borrowing amounts pretty close to what they borrowed in peak years to fetch properties in Australia. Annual borrowing for residential mortgage shows a steady picture. Michael Matusik from Property Update rightly points out that all three types; the first home buyers, second + buyers and investors are showing strong signals.
For first home buyers;
- Nearly 100000 of them bought their homes last year.
- Average mortgage for first home buyers is only about $12000 short of overall mortgage borrowings.
- First home buyers called a debt of $28 billion upon themselves. This is roughly 1/7th of the total borrowing.
For second+ buyers, the borrowing figure is $88 billion, about $4 billion in excess of Investors and three times the figure for first home buyers. Trading volume is only 5% lesser than what it was during the peak time.
Investors have worked up a debt of $84 billion, holding roughly 42% market share in the year 2012.
The investor market is bound to gather further momentum, while the first home buyers’ market will play second fiddle and in all earnest, there won’t be a property bust any time soon. You can read the original article here.
