Property investment is a dying art. It’s not getting any easier, property is getting more expensive and tenants are becoming more knowledgeable. Of course, while this is true in part, this would be a very one-sided perspective.

Property investment in the Capital remains strong despite some challenging factors. ?

For those well-versed in the investment game, adding to your portfolio can seem straight forward, but there are hidden challenges along the way. Whether you are stepping into the investment market for the first time or whether you are a seasoned landlord, adding to your portfolio can be challenging and stressful, let alone costly if you don’t buy the ‘right’ property. Needless to say that being attached to a successful real estate agency, we know a thing or two about property, and we know what makes a good investment. Below we’ve put together a guide to help take the stress away from property investment.

Adding to your portfolio should be a breeze! ?️

The first step to any good property investment is knowing exactly what you are looking for from the deal. If you are looking for cash flow from your investment property, it is imperative that you do your sums. Working out what the annual rent will be, allowing for the cost of mortgages, insurance, rates and a maintenance budget will give you a clear picture of whether the property will allow you to earn what you want to from it each week.

Working out the yield of a property is essential if you are buying for cash flow. ??

If this doesn’t stack up, then the property is not the right fit for your portfolio or could even end up costing you money each week. Buying smartly with yields is always something to consider when it comes to property investment. If capital gains and the long term increase in house prices is your main incentive to invest, yield, while still important in the running of the property day to day, plays less of a factor. Studying market trends and choosing locations wisely is far more important to you than what the property will rent for each week.

Once you know which type of return is more important to you individually, you will be able to steer yourself towards the types of property which are best suited to your investment strategy, meaning you can find the right addition quickly. ?

Essential to the success of the new addition to your property portfolio is working with a high performing team. Finding people who are in the best position to support you in your portfolio growth can be the difference between succeeding in or failing in the property investment market.

Finding a real estate agent who knows exactly what you are looking for can put you in a strong position as you look to expand. ?

It will afford you the opportunity to see property as soon as it comes on the market, and you can be guided on how to secure the property that is the perfect fit. Without a strong relationship with a real estate agent, the market can seem like a wilderness!

Similarly, a good mortgage broker is an asset not to overlook. If growth is the objective, a mortgage broker can very much be worth their weight in gold. Helping not only to reduce overheads by securing you the best deal possible on finance, but also putting you in a position to make strong offers on properties is the mortgage broker’s specialty and something that will stand you in good stead when you look to purchase your next property.

The final member of the team essential to the growth of your portfolio is a property manager. As your portfolio grows, it can be easy to get bogged down in the day to day running of multiple tenancies. Maintenance issues, watching rent payments, constant inspections and disgruntled tenants really are just the beginning. If the goal is to grow the portfolio quickly, employing a property manager can be a great step in the right direction. Property managers can take the stress and strains of the day to day away from you, allowing you to focus on where the growth of your portfolio will come from next.

Being involved in the market day today, you can guarantee that property managers will work tirelessly to ensure your property is achieving maximum rent which puts you in a strong position to grow fast!

Property investment is not dead. While it faces challenges, these are easily overcome with the right support systems in place. A clear strategy is essential to the success of your portfolio.

If you are stepping into the investment market for the first time, or are looking to add to your existing portfolio and would like some guidance about formulating a strong investment strategy, then feel free to give me a call anytime on 04 381 8604 .

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