There’s no denying investing in property in Mount Gambier and the Limestone Coast has the potential to improve your long-term wealth. After all, house prices in the region have jumped by close to 16% over the last twelve months as the region develops.
However, investing in property is, like anything, not without risks. If you want to make healthy returns, you need to ensure you are being proactive and working with a quality property manager.
The following seven steps will help you reach better outcomes, no matter what your investing strategy is.
Submit a depreciation schedule
Investment properties can be negatively geared in Australia, meaning that the money you spend on upkeep (e.g. paying for fire inspections, paying a property manager, interest paid on the mortgage) is tax deductible.
A depreciation schedule outlines the items in the property that are losing value. You can submit this as part of your tax return and maximise the money you get back (or reduce the amount you owe) at tax time.
Keep in mind that the items that depreciate will eventually need replacing. Try to put some money aside to cover these costs when the time comes.
Work with us!
As local and experienced Mount Gambier real estate agents, we have great connections and will ensure your property never stays vacant for long. This will help you to reduce holding costs.
We will also let you in on ways to maximise the rent you charge: for example there could be small upgrades that make the home more appealing to tenants so they are willing to spend that little bit more. Even a 10% increase in weekly rent will add up over the year.
Finally, we can help you claim all the relevant tax deductions by giving you a clear report of your expenses to share with your accountant.
Stay on top of maintenance and conduct regular inspections
Your property manager knows the right people to keep your Mount Gambier investment in tip top condition. This saves you from the time lost trying to find someone to do work at the last minute.
Having a maintenance schedule will ensure your property is well-looked after. Your tenants will be happier and you are less likely to be shocked by major expenses.
Review your loan
How long has it been since you refinanced? With interest rate rises on the horizon, now is the time to take advantage of near-record low rates. A reliable mortgage broker can help you to refinance and potentially save a few thousand dollars per year. If you can keep up a higher rate of repayments, you’ll have your loan finalised sooner.
Many new investors make a purchase expecting it to perform well no matter what. However, there is science involved with investing and there are formulas for getting it right. For example, investing in a smaller apartment near TAFE or university makes sense because of the people who are likely to live in the area. If you invest in a family home, make sure it is located where people want to live with their children, and close to schools and other services. Here’s a recent article from our team about ensuring your property appeals to tenants.
Be flexible about pets
Think about allowing pets to live at the home and work with your property manager to create an agreement that will protect you from big expenses in the event of an animal causing damage. Allowing for pets can be a great way to build good relationships with your tenants, which means they are likely to stay longer.
Don’t stop at one
Expanding your portfolio is very exciting and can lead to great results. Once you have familiarised yourself with a single investment property, why not keep going? Purchasing multiple properties in the same area makes sense because you only need a single property manager as your point of contact.
There are so many properties with investment potential in Mount Gambier to suit a range of price points. Take a look at our latest listings and get in touch to find out what could work for you. It makes sense to buy a newer home if you can, as it will require less maintenance and tenants always like a more modern place to live in.
We always have new homes coming onto the market and are happy to get in touch when a listing that may suit you comes up.
Want to know more about investing in property in Mount Gambier and getting the best returns? Talk to the experts at Complete Real Estate today.