5 tips for property investors in 2019

Rental property in tenant market

A new year marks the perfect time to lay the groundwork for a year of property investment success. Angeline Mann, director at property valuation and advisory firm Herron Todd White, shares her tips on how to excel in 2019.

  1. Go over your budget

The tough finance environment that plagued borrowers in the second half of 2018 looks set to continue over the medium term – particularly with the royal commission findings due in February this year. Now is the time to get your financial affairs in order so you can put forward a strong case to the lenders when a prospect to buy arises. Banks have been scrutinising household spending going back three to six months during the loan approval process, so your records should be impeccably kept.

  1. Check your leases

Smart landlords study their existing lease details well before they’re due to be renewed. Residential vacancy rates, particularly in our biggest capitals, have been on the rise, so locking in good tenants on long-term leases is smart thinking. In some cases, avoiding a rent rise – or even lowering the rent come renewal time – means you can keep a good tenant longer and reduce your vacancy.

  1. Collect sales and rentals information

Being well informed about markets helps investors spot opportunities quickly. There’s no substitute for studying actual completed sales or rentals in a suburb across a three to six month period in order to paint a picture of a market’s direction. If you have selected a location, start putting together a file of properties that have sold and/or leased in your price point straight away, and you’ll be far better informed as the year progresses.

  1. Think outside the city box

Smart investors are becoming borderless. Sydney and Melbourne are coming off half a decade of huge value gains, and their outlook is for further price softening. While there will still be opportunities in these capitals to profit, savvy investors are learning to get outside their comfort zones and look further afield.

  1. Contact your advisers

Now is the time to ensure you have a solicitor, accountant and other professional advisers on hand and aligned with your ambitions for the year. Building relationships with advisers now means that when opportunities arise during the year, you’ll be prepared to get the speedy answers you need to make fast, well informed decisions.