Owning your own home is of course a dream that many share. There is nothing more rewarding and relieving than knowing that you live under your own roof, without rent even if you pay mortgage on the property. However, have you thought of making use of this investment by taking it even further? How about the idea of you becoming a landlord? As people are becoming more savvy driven by their need to become financially independent, there are many options that are cropping up in light of this. If you are in a position to and considering buying a property, take it a step further by analysing how you can turn it into an investment in the long-term.
TAXATION
As a home owner, there are of course many things you will need to look at to ensure you save money and also maintain your property to the best of your ability. When buying an investment property you have to consider many more aspects that are tied to it. For instance, one of the biggest costs you will face is taxes. Depending on where you live, the type of property you are renting and the cost of the property your taxes can fluctuate. As you are also probably paying off a bank loan taken out on the property which will go on for a number of years, you need to keep a track of your taxes. Make sure you also make note of any increases so that you can adjust your rent accordingly to factor the changes in. Else you will lose out. Massively.
PROPERTY DAMAGE
Landlords everywhere will empathize with this. Although there is a very small percentage of exceptions to this, a majority of renters everywhere not just Australia, are not at all mindful of their premises. As they have the notion of ‘not mine’, they are not vigilant in taking care of the house and keeping it clean. In fact, renting houses is known to be one of the fastest ways to run them down as there have been some nightmare situations where mountains of junks and damaged items have been left behind for landlords to deal with. Visit your property often to keep tabs on it and ensure your account for deductions from their bond for any damages.
FACTOR IN COSTS FOR REPAIRS
Drawing from the above point, this is very important. Do not assume that your tenants will be as meticulous as you are when it comes to your property. They are merely there for a period of time and they will be gone leaving you to deal with the repercussions. When buyers advocate Melbourne ensure you also open an account for potential repairs. This will ensure you do not suffer any major financial dents when the time comes as you would have saved consistently. Even if all the doors of the house are missing at some point you will be ready!
READ UP
Renting property is a big decision as you have to be prepared to deal with a whole avalanche of new issues. Good tenants are rare to come by, however if you do find them try keep them! Ensure you have time on your hands between work and family to keep a check on things with property management Melbourne contact infolio, visit the property once in a while and look for workers to cater to repairs when necessary. Having a tax accountant will also be useful in keeping up with new rules and regulations.