5 ways to maximise investment property returns
When you own an investment property, getting a good return should always be your end goal. For the first few years, you may find that your returns don’t always outweigh the costs, however, there are a few simple things that you can do to maximise the returns on your investment.
Prepare a depreciation schedule
Most property investors don’t take full advantage of a depreciation schedule, so are potentially missing out on tax deductions. A quantity surveyor or property valuer can prepare a depreciation schedule for you, which is essentially a forecast of all the depreciable items in a property.
The depreciation schedule includes building costs, capital works (foundations, walls, roof, doors, windows etc) and plant and equipment (carpets, blinds, air conditioning, fans and appliances).
Have a chat with your accountant or financial adviser about how a tax depreciation schedule can help you come tax time.
Keep an eye on interest rates
If you have been waiting for the right time to get into the market, now may be a great time to consider buying an investment property. With interest rates rising and property values stagnating or falling slightly, you may find yourself in a buyers’ market, making it easier for you to purchase a quality property at a good price.
If you already have a loan, keeping an eye on your interest rates is key. Keep in touch with your broker to see what the best deal is, or set aside time every few months to check what other deals are available.
Look at your property’s amenities and presentation
Quality amenities and presentation is key when advertising your property for rent and obtaining a higher rental price. While you don’t need to include top of the range appliances, you also don’t want to have the cheapest possible option on the market – remember that these items are tax deductible, and quality will last longer.
A great garden is always desirable for tenants, whether it is somewhere the kids can run around in, somewhere to relax or space to grow their own produce. Consider what you would like in a property if renting, and see where you can maximise your rental income.
Think about what tenants are looking for
Knowing what tenants are looking for can make your property more attractive, and therefore get a higher weekly rental price. It is wise to keep in mind that this may be different to what you would look for in a home.
Generally, tenants are looking for the following:
- Location
- Safety and security
- Parking
- Quality appliances
- Usable room design
- Storage space
- Easy to clean
Talk to us – the leading property managers in Point Cook and surrounds!
Utilising the services of a local property manager who knows the area and knows what tenants are looking for is one of the biggest factors in getting a great return on your Point Cook real estate investment. The team at Established Property are the best local agents in the Wyndham City area. We invite you to pop in and see us or give us a call and see how we can help with your property investment.
