While being a landlord means you have something in common with most other Australian property investors, the way in which you became a landlord and the ‘why’ behind it may be vastly different.
As we know, a lot of time and research goes into the initial purchase of a property: considering the type of property, where it is located, what is happening around the region in terms of infrastructure and growth, and, of course, the local property market.
This information is invaluable when it comes to securing the right property, as is an understanding of any additional financial input that may be required, such as for repairs or renovations.
Investors might consider how financial return is achieved with minimal risk and minimal effort, and in what timeframe. Depending on what stage of your property investment journey you are on and whether you are looking short or long term may directly impact on initial investment planning.
Long term planning not only looks to the future, in terms of planned infrastructure and services to give a good indication of future growth prospects, but delves into the past by looking at market growth to date.
The demographics of residents provide valuable information. This can be useful in determining what will be financially beneficial for the property in terms of property updates and renovations.
For other investors, it is the short-term focus that may speak more clearly. Clear planning and a solid knowledge of current markets will help to balance project costs with property prices, indicating the best time to buy/sell. Again, demographics play an important part in determining short-term decision making.
Property type, purchasing habits and supply/demand are all important in investment planning. While it pays to be informed, understanding and accepting that markets change and circumstances change, and considering how these changes can affect your investment, is an important part of your planning.
Regardless of whether your investment plan is for the short- or long-term, educating yourself and surrounding yourself with a strong, knowledgeable team with trusted insight is an important first step.