What to Do After Buying Investment Property
The Victorian Government has created grants to encourage Victorians to build or buy their very first home. The pandemic caused by the invisible virus halted plans to build or buy, but now that its impact is almost behind us, people are gearing up for a new stage of their lives.
For those who were able to take advantage of these official grants and schemes, the next thing to think about is the steps you need to take. You didn’t think you’d have time for that rest, did you? If you want your purchase to be worth it, you have to get to work immediately. As a buyer, you have the right to choose whether this property will be your very own home where you go home every night or it’s a property that would help you generate wealth long-term. If you decide that the property is for investment purposes, the steps will be quite critical.
Here are some things you must do to ensure that your property investment would be a success.
Ask for the Services of a Property Manager
Becoming a landlord is much more complex than you think. But it could be much easier if you have an extra pair of eyes and hands as you go through this journey. Never underestimate the services of a good property manager. Hiring one to help you out is one of the best things to do when you decide on investing in property. Experts have the knowledge and experience that could help you a lot when making tough decisions. Property managers have been trained to ascertain which property to buy and where it is located, plus, the would be very helpful to fix problems that may eventually lead to bigger issues if ignored.
How do you know if the property manager is a good one?
When it comes to hiring a property manager, asking for referrals is the way to go. You should also make sure that the person you hired has a deep understanding of the legislation and has ample experience. This is necessary because they need to show that they have the ability to assess a client’s case individually and uniquely. They should also be able to find a tenant right away which would be critical for you to maximize your ROI.
Making sure that you have the right insurance in place will save you from debts that would become a liability due to let’s say, unexpected and unfortunate events. Some situations could possibly become difficult to fix, so insurance is a safeguard that you should not neglect. Insurance plans for the property normally cover damages brought by natural calamities such as floods, storm surges, high winds, and even fire. It would also cover breakages in windows, pipes, and leaks. What’s great about property insurance is it’s not too expensive plus, it is tax-deductible. You at least have the assurance that any problems like loss of rental income and damage to the property by the tenants or their parents will be covered.
Repair and Maintenance Funds On-hand
Any building will eventually need some repairs and maintenance to keep it secure and looking new. The strata fees include a sinking fund levy and this is exactly why. At some point, your property will need new paint, replacement of any built-in appliances, plumbing and electricity fixes. It is important that as a landlord, you have a fund set aside for this. It should be a priority for you to keep your property safe. Contingency funds are very important especially when you have invested in something as big as this. Property investments do guarantee Return on Investments but only if you do it correctly.