There are many different types of property to consider for a new investor entering the…
January is the ideal time to review your property investment goals and map out a clear investment strategy for the year ahead, according to leading landlord insurance specialist, Terri Scheer Insurance.
Terri Scheer Insurance Executive Manager Carolyn Parrella said it was a good idea for property investors to include their financial goals as part of their New Year resolutions.
“January is often a time when many people reflect on the past year and think about their future,” she said.
“Whether you’re considering entering the property market for the first time or you already have a property portfolio, now is the time to consider your financial targets for the year and set out a plan to achieve them.”
Ms Parrella offers the following tips to help achieve your property investment goals in 2015.
Develop a clear investment strategy
“Investors should have a clear investment plan before plunging into the property market,” Ms Parrella said.
“Consider what you’d like to achieve as an investor for the year ahead and be specific. For example, you may have a particular goal in mind in terms of a profit negative gearing target or the purchase of an inner-city apartment.
“Careful planning at the start of the year allows you to map out a month-by-month or annual action plan. The property market is generally slower at the start of the year but it does give you the opportunity to get ahead of your competitors with a well thought-out strategy.
“Go online and read up on market trends, investment reports and real estate data as this may help shape your strategy.
“Consider including your capital growth and rental income strategy and how you plan to manage finances throughout the investment in the plan.
“If necessary, seek professional advice on how to set up the best strategy with the aim to maximise the value of the property and produce regular income.”
Review rental income
“While January may not be the appropriate time to consider increasing the rent, it is a good time to review it as part of your strategy,” Ms Parrella said.
“Landlords are at times entitled to raise the rent periodically depending on the rental agreement, and planning for this should be put on your investment review strategy at the beginning of the year.
“No tenant wants to pay more rent, however it is sometimes necessary to implement rental increases to cover the rising costs of maintaining a property.
“Planning for small incremental increases each year, in line with the consumer price index, are often received better by a tenant than large increases on a more sporadic basis.”
Review insurance coverage
“Part of your investment strategy should include an assessment of your insurance coverage,” Ms Parrella said.
“Too often property investors overlook risk management until after a tenant has moved in or something has gone wrong.
“Specialised landlord insurance cover can protect investors from many of the risks associated with owning a rental property and provide peace of mind if the unforeseen should occur.
“This includes covering for risks like malicious and accidental damage, loss of rental income and potential legal liability.
“Check your insurance policy and seek professional advice to ensure you have the appropriate coverage.”