TOOLS FOR THE FIRST TIME PROPERTY INVESTOR
The property market is often said to operate in cycles, and whether it’s a boom, steady or contraction phase the property owner needs to adapt their investment strategy where necessary. Property ownership also involves different stages with many people entering as first home buyers, and then becomming renovators and ‘upgraders’. After building equity in their property/s they often look to become investors.
In today’s blog we’re going to explore a few key tools for the savvy property investor with McAdam & Turnbull Realty Principal Lachlan Evans.
Buying an investment property essentially involves the same steps as any other property purchase with a few exceptions.
- Finance – If you need finance to buy an investment property it’s important to know how much you can borrow based on your financial position, available deposit and other factors before you start searching. Lenders may impose some additional restrictions on investment lending with fewer fee incentives and larger deposit/equity requirements.
- Government Incentives – Generally, there are none. In Queensland, investors pay a higher rate of transfer duty (Stamp Duty) compared to owner occupiers. Lachlan recommends speaking with your solicitor to get the full picture on government charges and other fee considerations relative to investment purchases.
- Inspections/Offers/Contracts – The process of making an offer and negotiating contract conditions is the same as any other purchase. The McAdam & Turnbull team believe the role of the agent also includes providing general market information to help buyers and sellers make informed decisions that meet their real estate needs. So, it’s important to make use of that information whilst searching for the right investment home. Rental return, location, proximity to schools and shops are all factors to consider when purchasing a property for rental purposes. See our last Blog for more details.
- Accountant – Buying an investment property may have taxation implications and McAdam & Turnbull recommends you seek appropriate advice from your accountant BEFORE signing a purchase contract to ensure your best interests are protected when it gets to tax time!
- Legal Services - There are many local law firms that offer conveyancing services for investment property purchases including pre contract reviews to ensure the contract contains appropriate clauses that protect your interests.
After taking possession of the property it’s time to start earning some income and getting a return on the investment. Professional and experienced property management services like McAdam & Turnbull are essential to protect your interests and ensure a high tenancy rate and low risk tenancies.
Getting the right tenant is one part of the process. Property Management is really about the working partnership between Property Owners, Managing Agents, and the Tenants.
Property owners need an agent who understands the challenges of being a property owner who has to juggle mortgage payments, rates, insurance and maintenance costs. That is McAdam & Turnbull!
Tenants need an agent who understands they want a place to call home! They also want to be respected as the occupiers and carers of the property. McAdam & Turnbull are focused on building strong relationships and delivering outcomes that meet the needs of property owners and tenants alike.
Once you’ve selected a real estate agency to manage the property, the agent will prepare a management agreement that sets out the details of the service and any associated professional fees. Management services usually include marketing activities to find a suitable tenant, leasing arrangements, rent collection, dispute resolution, Residential Tenancy Authority arrangements and end of tenancy processes.
As a property owner you should receive reports after every scheduled inspection of the property in addition to regular statements outlining income and expenses. These details should be clearly articulated in the rental management agreement.
McAdam & Turnbull believe good engagement and reliable communication is at the heart of a successful property management relationship.
The process of buying and managing an investment property can be complex and every persons situation is different. The team at McAdam & Turnbull are focused on tailoring real estate options to meet your needs and keep the experience as stress free as possible. That’s how we’ve delivered peace of mind and the right real estate solutions to the Toowoomba community since 1980.
McAdam & Turnbull Realty are your local real estate professionals supporting buyers and sellers in Toowoomba and nearby surrounds. You can follow our Principal and agent Lachlan Evans at www.linkedin.com/in/lachlan-evans-621bb583 or view our current listings at http://www.mcadamturnbull.com.au and LIKE us on Facebook @
This publication covers real estate, property market and legal related issues in a general way. It is intended for general information purposes only and should not be regarded as legal advice. McAdam & Turnbull Realty recommends that professional legal advice should be obtained before taking any action on the basis of the general information presented in this publication.
Written and Published by www.presentprofessionally.com.au