10 common questions from first-time investors
Buying an investment property for the first time can be overwhelming – there’s so much that seems like it should be straightforward, yet it isn’t. An experienced property manager will be your best friend when it comes to purchasing your first investment property.
Investing in Mount Gambier
The property market is soaring and rental vacancies are low - now is a great time to be purchasing an investment property. Mount Gambier offers some well-priced properties that are perfectly suited to investors.
Apart from this, there’s plenty of infrastructures and building happening, and the prices for both sales and rentals make Mount Gambier an attractive place to live
Investors in Mount Gambier tend to be buying an investment property in the $250,000 - $350,000 range, with many looking for well-maintained properties that won’t require a lot of work going forward.
Here are the answers to 10 common questions you may have.
Do I need landlord insurance?
Generally, the answer is yes - you will need landlord insurance, which is tax-deductible. You want your insurance policy to cover damage, both accidental and malicious, rent arrears, theft, lease break and loss of rent, legal action, storm damage and so on. Make sure you spend some time looking at all your options.
How do you check an applicant?
At Complete Real Estate we check several areas while assessing whether an applicant is suitable. At our online portal, you can see that we ask for references - personal, residential and employment - as part of the application.
How does someone apply for my property?
Properties are advertised online, and we then meet them and show them through the property. They will then be directed to apply through our portal.
How do you choose an applicant?
We go through several steps to choosing an applicant, including:
- Checking references
- Confirming incoming
- Confirming ID
We keep our owners informed of all applications, our thoughts and then come to a decision with your input.
How should the property be presented?
Neutral colours throughout, freshly painted walls and everything in good working order will always attract a better quality of tenant. We recently published a blog on how spending money on your rental property can pay off.
Should it be furnished or unfurnished?
Unless your property is being rented out as a very short term rental or a holiday house, leaving the property unfurnished is a better option. Most people prefer to use their own furniture and furnishing a property, including replacing damaged furniture, can be expensive.
How do you set the rent?
There are several ways that rent is set on investment properties, and it is worth understanding how that happens. The last thing we want is for your property to be vacant for too long, or to be undercharging. Your agent should be providing you with an appraisal based on what is happening in the local market.
How often are rental payments made to me?
Tenants pay their rent into our trust account fortnightly or monthly, and we offer our clients two options – a monthly or bi-monthly payment directly into their bank account.
Should I accept pets?
It can be a contentious issue, however, pet-friendly rentals are always in high demand, and tenants generally want to stay for much longer. If you’re happy to accept tenants, there are some steps that can be put into place to minimise damage.
What happens if a tenant doesn't pay rent?
If your tenants don't pay their rent, the tenancy legislation allows for us to breach the tenant once they are more than 14 days in arrears. In current times, if your tenant is financially impacted by COVID, tenants and landlords are encouraged to work together to find a solution. If no solution can be found, the matter can be taken to SACAT.
At Complete Real Estate, we stay on top of any legislation changes so that you don’t have to.
Are you ready to purchase your first investment property in Mount Gambier? Contact the team at Complete Real Estate today for an honest appraisal or an informal chat.