6 Tips for Property Investing Success in 2020
It's a new year, and with that often comes a renewed sense of motivation and inspiration. For many people, it's also a time of year where work may be quieter than usual, and you've got more downtime for reading and research. If you're spending some time planning your property investing year ahead, here are six tips to help align your thoughts, attention and goals.
1. Put together a budget
Whether you're looking to hold your current portfolio or buy or sell properties in 2020, make sure you do a budget that reflects these needs. This is particularly important as the lending environment continues to be volatile at times. Review all of your income and expenditure, and highlight if there's extra money you want to put towards investing in 2020.
2. Review your leases and rental income
Check the leases across your property to take note of the end date and set calendar reminders ahead of time to prompt your property manager to send a renewal to the tenants. Also, think about the different ways you can keep a tenant if the market is favourable for tenants around the lease end date. For example, you could forgo a rent increase. Further, making sure your lease renewals fall around busy periods in the market is helpful too. These busy periods are typically January and July. As a part of our property management service we provide this to all landlords approximately 2 months prior to the expiry of the tenants lease without prompting required.
3. Start your market research
Being aware of the recent sales and rental markets where your investment properties are located, plus the markets where you're looking to invest is a great way to get ahead before you start looking at property. To get your research started, look at figures on the completed sales or weekly rental prices in your area for the last six to 12 months. Similar to your leases, you can add a reminder to your calendar to complete this research on a regular basis. We at Rodgers & Wilson are able to provide these updates to you quarterly at no cost, saving you time and money. Simply let us know whether you would like to receive updates every three or six months and we will then email the report through.
4. Expand your location horizons
It's common to default to locations that we know when it comes to buying property. Lesser-known areas, however, could be exactly what you're looking for in your next investment. If you're partial to Brisbane, expand your research to the smaller capital cities and regional centres to get an understanding of different markets.
5. Review your investment goals
Based on your market research and where you expect the market to head in 2020, you may want to adjust your investment goals and strategy.
6. Speak with your team
Take the time to check in with your advisers, including your lawyer, accountant, mortgage broker and any other professionals who help you on a regular basis. It's an excellent time to talk through your plans and goals for the year and potentially optimise your strategy.
Investing the time at the start of the year for planning and research will set you up for success in 2020, no matter what your plans are for the year ahead!