Category: Property Investment

profit-on-your-rental

How to Ensure Your Rental is Profitable?

The only way you can start to make a profit on your rental is to get it leased out. This means you need to have a home or commercial building that presents well; it must be spick and span, with no obvious faults and definitely not shabby-looking. So property maintenance is the order of the day as soon as your present lessee calls in the furniture movers and moves out. Of course you have to make essential repairs while tenants are in your rental, but there are other things to do that can’t be done until it is vacant.

Walls get shabby after a house has been lived in for some years. Cleaning doesn’t always make them look any better. Repainting the interior will make your rental look like new again, with more modern colours and that new look and feel. Some homes also need new carpets or other floor coverings and new curtains or blinds to make them look like a home.

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Buying Your Own Home?

Everyone needs somewhere to call home, a place of their own and whether you buy or rent, you want to be comfortable, safe and enjoy spending time there. While there are some people who prefer being on the move, living out of suitcases in hotel after hotel most people like to have a home of their own. It doesn’t need to be a mansion with a home lift – even if that is their own caravan, motorhome or live aboard boat, the common denominator is that it is theirs.

In some European and many Asian, African and Latin American countries, renting is more common than home ownership. Germany for example has only 42% of the population owning their own homes and countries like India, China, Argentina, Chile, South Africa have even fewer home owners. The tenancy laws in some of these countries often favour the tenant and ensure long term security in ways that make renting a far more attractive proposition than owning your own home. In others it is because there is a higher percentage of very poor people.

While tenants don’t have the ongoing expense of property maintenance and expenses such as rates or adding tenant requested items such as security doors and flyscreens, they also don’t enjoy the capital gains that accrue from property ownership. In these markets, rents are usually far less than mortgage payments and renters can invest their extra cash in various ways to make up for not having bricks and mortar behind them.

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Where to Spend Your Money in a Home Renovation

With the value of real estate finally on the rise again, many Australian homeowners are starting to once again look into doing home renovations to improve the value of their properties. For years people have been putting off employing a landscape design company or doing a full home renovation project, to avoid putting more money in their home without seeing a similar increase in its value. However now, with the market slowly and steadily recovering, renovation projects are once again a smart way to increase the value of your property.

Finding something to remodel or upgrade in your home is typically the easiest part of the process. It is easy for anyone to point out the areas that they are not happy with or wish to upgrade. It is far more difficult to know which projects to pick, both for your own enjoyment and the resale value of the home. When working with limited funds to renovate a home, it is important to pick and choose the projects that will really make an impact. Upgrades in a few key areas of the home can make a big impact on the property value, without blowing the budget.

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Property Investing – A Few Things To Think About

The property boom years prior to the Global Financial Crises of 2007-2008 saw everyone and their dog becoming property investors. It was a crazy time for many with people buying anything to get ‘on the property ladder’ and the ‘reality’ TV shows of the day making it seem so easy. All you had to do was buy a dog at an auction for well below street value, then do ‘a reno’ and sell it, again at auction, for way over the reserve. Simple!

The reality was that while not as easy as that, it wasn’t that hard and part of the reason was that banks were virtually throwing money at anyone they felt could make the payments and even if they couldn’t, they were re-selling soon so no problem. At least that was how it often looked. It is true banks and lending institutions did relax considerably the lending criteria they had applied for decades and it was simpler to get a mortgage. Of course when interest rates soared in 2008, although nowhere near as high as they had in 1986-87, many were left holding paper on properties that were not fetching anywhere near what they were mortgaged for.

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4 Ways to Save Money for a Home Deposit

Buying a home is a major milestone towards adulthood for most people. However gone are the days when you could just turn up to the bank and score a 100% loan. Today banks want to see evidence of some genuine savings before they hand over the cash to fund your first home.

If you want to have your own little place to call home you will need to save up at least a 10% deposit.  Now with the soaring prices of property and rapid increase of general living expenses, many people have a tough time saving up enough money for a home deposit – actually it feels near impossible. However with strategic planning and budgeting you can turn your dream into a reality. Here are four ways you can save more money and build your balance faster.

1. Get Other Debt Out of the Way First

It is hard to focus on saving the money you need for a home deposit when you are overwhelmed with trying to pay off all your other debts. If you have debts with high interest rates, such as credit cards or personal loans, you are better off putting all your money towards paying these debts off first. By paying these debts off first you are saving yourself a lot of money on interest, money which can be better put towards a home deposit. Once all your debts are paid off, open up a new savings account and put any money that you would have put on your old debts into your new savings account – watch how fast your deposit grows.

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