Choose Property Attractive to Tenants
It should be clean, have good-sized bedrooms, off-street parking, and good positioning away from noise and main roads. These factors will ensure your property is attractive to renters and will guarantee your income stream. |
Choose Property That Will Grow in Value
If the property is close to a major CBD, beaches, schools, public transport and leisure facilities it’s more likely to grow by more than the average in a good market and is more likely to hold its value in a down market. If you buy around the median price then more people can afford to rent it and more people can afford to buy it if you were put into a forced sale position. |
Buy Blue Chip
Cheap properties are cheap because they are not in great demand and there’s plenty to choose from. It’s worth paying market value for a good property in a top suburb rather than trying to save by buying something no one else wants. |
Create Instant Equity
Quick renovations such as a paint job, re-carpeting, tidying the garden, painting the fence, installing new curtains or blinds, and replacing the kitchen-cupboard doors can significantly improve the value of your property. |
Refinance to Create a Buffer
When your property grows in value, refinance to create an emergency ‘buffer’ zone. This will ensure you can continue to make mortgage repayments even if you lose your job. |
Re-sign Your Tenants
Hire a professional property manager to ensure you get reliable tenants and that they pay a good market rent. Consider tying your existing tenant down to a new 12 month agreement. This will help guarantee your rental income. |