Thinking of investing in Property in 2020? Here are 6 Tips for Success
Can you believe it is 2020, a new decade? If you are like me, you don’t know where the last decade went. A New Year often brings 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 time for reading and research. If you're spending some time planning your property investing year ahead, here are six tips to help focus your thoughts and attention.
Start your market research
To get your research started, look at figures on the sold properties or leased properties in your target area for the last 6 to 12 months. Become aware of the 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 houses. Call a local Real Estate Agent where you are looking to buy and ask them what they are finding in the current market, let them know you are looking for an investment property. You might find they call you 1st when something comes up so the office can keep the rental property on their books and this Sales agent can also get a sale.
BUDGET, BUDGET, BUDGET (and stick to it)
Be sure to 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 the moment. Review all your expenses and income and set up savings plan if there's extra money you want to put towards investing in 2020. Talk to a mortgage broker as the criteria around lending may have changed since you last took out a loan, this may change your borrow power for the next property.
Review your leases
Check the leases across any investment property you currently own, take note of the end date and set calendar reminders ahead of time so you can prompt your property manager to send a renewal to the tenants. Speak to the property manager looking after your rental to find out what is happening to the local market. Do you need to forgo a rent increase so the current tenant re-signs? Make sure your lease renewals fall around busy periods in the market too. For example, if your property is near the beach keep renewals to summer and try not to have a lease expire just before Christmas.
Expand your search location
It's common to automatically start searching in the 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 Sydney and Melbourne, expand your research to the smaller capital cities and regional centres to get an understanding of different markets. Different property value, different rental returns and also different projected grown for these areas.
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.
Speak with your advisers
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 they could help to 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. With the property market looking to be on the upturn, now might be a great time to buy that investment for the future.