We have compiled a list of 8 tips to keep the momentum going, in your property investment portfolio. If property is your passion, then you will love the tips below:
 
1. Have your mortgages reviewed, regularly. My parents used to tell me you need a good doctor, lawyer and accountant that you can trust, and you are set for life. While this still holds true, I would definitely add another person to this list, and this would be a good mortgage broker.
 
Keep on top of what is happening with interest rates, packages and offers – don’t forget that you can still negotiate the details with your current bank if there are more favourable options out there.
 
2. Watch for growth in your property – growth will allow you to use the equity available in your property and purchase more properties. This is why in part 1 of our property series, we emphasised buying in an area of growth.
 
3. If you are happy with your tenant, then make sure your tenant is happy. This involves engaging an excellent property manager, who will look after your property as though it was their investment. From experience, this is sometimes hard to find, and when you do find a good property manager, they usually get poached into the sales division not too longer after they have settled in. Unfortunately, for property investors, this is an area that constantly needs review and work. You must keep your fingers on the pulse, and ensure you have a good property manager that will keep your tenants happy, so that your property is never untenanted for long periods of time. If your property becomes untenanted for any period of time, it means loss of income and lack of cashflow for you.
 
4. Keep researching. As a property investor, you are probably hungry for your next purchase. So keep that eye on the property market. What is a potential growth area? Do you like the area that you have invested in already? If not, why not? Analyse and do your homework, so that when you are ready to purchase your next property, you already know what it is that you are after.
 
5. Keep your cashflow constant throughout the year, not just at tax time – ask your accountant to review your situation, to see if they can assist with this. If not, it is time to find a property expert accountant that can help. Money in the hand now is worth a lot more than money in the hand 12 months down the track.
 
6. Depreciation reports – if you have not ordered one when the property was first purchased, now is the time to do it. Have it ready before your tax return is due for lodgement, as it can save a lot of time. When it is tax season, quantity surveyors can sometimes take up to 2 months to finalise their reports, due to it also being peak season for them. Get in early, negotiate a better deal if possible in their off peak season, and be prepared. Your accountant will love you for it.
 
7. If there are any repairs to be made to the property, make sure you attend to it. Review your building inspection report – is there anything there that needs attention? Do not leave it and forget about it, as it will come back to bite you harder than if you were to deal with it when you first realised something needed repair. Make sure you keep all receipts for tax time too! And if the repairs start to look like renovation works, get another depreciation report prepared by the quantity surveyor.
 
8. Insurance, insurance, insurance – make sure your valuable investment is insured. This is especially important if you are in an area prone to natural disasters. Another insurance to have is landlord’s insurance which can come in handy if your tenants become unmanageable.
 
So there you go. Plenty of homework and tips to keep you busy, until the next property comes along!