Property Investing Faqs
Looking to invest in property or currently have an investment property? Here are 12 of our most frequently asked questions and answers to help you maximise your property investment returns.
1. What neighbourhood features should I look for when buying an investment property?
Good locations will always be in demand for both renters and buyers. Here are the top five neighbourhood features to look for when buying an investment property. Close to public transport and amenities, proximity to lifestyle features such as coffee shops, bars etc. An area on the brink of transformation, close to good schools and an area with a low crime rate. For a more comprehensive list of features and what to look for in an investment read our property investing page.
2. How do I research the property market?
On-line research on sites such as mcgrath.com.au, domain.com.au, realestate.com.au and corelogic.com.au can help you understand the overall market, what is for sale and what is for rent, plus the demand and pricing for different suburbs. Talk to the local McGrath Property Manager about rental properties in the area, the rental demand, and how much they are renting for, what features tenants are looking for and what are they prepared to pay more for. Our team of Property Managers are a great source of valuable local market data and would love to share their insights. Plus, it is a good idea to talk to the locals to get a feel for the suburb, they often are a great source of local know-how.
3. What are the costs of investing?
The key costs you will be expected to pay as a property investor include:
- The purchase costs
- Loan establishment fee
- Mortgage insurance
- Stamp duty
- Conveyancing and legal fees
- Interest on the loan
- Building and landlord insurance
- Strata fees, land tax, council rates
- Property management fees
- Property maintenance costs and
- Accountancy fees.
There may be other costs related to your specific property so ensure you talk to your accountant about these.
4. What do I get when I have a rental appraisal with a McGrath Property Manager?
Your McGrath Property Manager will:
- Comprehensively review your investment property and provide you with a report assessing the property’s key features, location and rental appeal
- Analyse of the current local market, what similar properties are currently available for rent, and what has been rented in the last 90 days
- Provide a suggested rental price guide
- Share a suggested high impact marketing campaign to ensure you attract high quality tenants
- Plus during the appraisal, the property manager can also share insights into where and how you could possibly add value to your investment.
Yes, I would like to organise a rental appraisal.
5. How can I make my property investment tax effective?
Your accountant is the best person to advise you here, however, in most cases you can deduct the following key items.
- Purchase costs for the tax year you purchased the property
- Investment loan costs
- Repairs and maintenance carried out on the property during that tax year
- Property management fees
- Home contents and landlord insurance
- Land tax and council rates
- Accounting and legal fees
- Depreciation on assets such as whitegoods.
For a more detailed breakdown on other costs you can claim download our Maximising your Property Investment Potential Guide.
6. What is the role of a property manager?
A property manager is responsible for:
- Dealing with the numerous day to day tenant demands
- Promoting and advertising your property to reach the best tenants
- Hosting open homes and taking all rental enquiries.
- Screening the tenants and conducting thorough reference checks
- Managing the lease sign up process and condition reports
- Providing relevant financial accounts for the property investment and regular reports on the property
- Managing the rental payments and ensuring the rental arrears policy is implemented
- Managing maintenance issues on the property
- Regularly inspecting the property on your behalf to ensure it is being well maintained by the tenants
7. How can I add value to my investment property?
Every property is different, these enhancements can help add value to your investment property. Here are five improvements to consider for your property.
- A fresh coat of paint on the walls can totally rejuvenate the appearance of the property
- A tidy garden helps makes a good first impression
- Update the kitchen
- Refresh the bathroom
- Add some built in’s and storage.
For more proven insights into where you can add value to your investment property download our 24 page Maximising your Property Investment Potential Guide.
8. How do I reach and appeal to good quality tenants?
Some features of investment properties that are popular with tenants include; a good location, a good quality kitchen, air conditioning / heating, good quality fixtures and appliances, good quality blinds, shutters or curtains, good internet connection, pet friendly, a useable outdoor area a lease longer than 12 months and good storage options
9. How do property managers screen prospective tenants?
Our property managers are skilled at profiling prospective tenants to determine if they are the best match for your property. They will review the applicants credit history, proof if ID and income, they will thoroughly check references, the national tenancy database and ensure that the process complies with anti-discrimination laws.
10. What are the qualities of a high performing property manager?
A high performing property manager should have excellent communication skills, be highly efficient and organised, be trained and educated with a focus on continual education, have in-depth market knowledge about the local real estate market, be experienced or part of a highly experienced property management team. Ideally, they should think like an investor and be focused on helping their landlords maximise their investment success. Additionally, strong references and a proven ability to negotiate and be forceful when required is also valuable.
11. What are the benefits of using a property manager?
Trained and skilled property managers offer a number of key benefits for property investors. They understand the local rental market and therefore can help ensure you are charging the right rent. They know how to create a high impact marketing campaign to appeal to the right tenants. They screen tenant applications, and manage the contract signing process. They manage all maintenance issues with the property and have a team of tradespeople at their fingertips offering competitive rates. Property Managers look after all day to day tenant demands, any termination of contracts and are across the ever-changing legislation. Plus, a key benefit of using a property manager is there fees are tax deductible.
12. Why choose McGrath Property Management?
At McGrath, we don’t believe that our job is just to manage your property. We see our role as delivering a premium service and working with you to maximise your investment potential.
Our team of 400+ fully trained, certified or licenced Property Managers, spread across 99 offices across the East Coast of Australia, combined with our unique McGrath Leasing System and six-star service, ensures we deliver exceptional results, outstanding customer experience and lifelong relationships with our clients. Connect with your local Property Manager.
Have more questions? Download our Maximising your Investment Property’s Potential guide, all you need to know to about how to ensure you are making the most from your investment.