5 TIPS TO MAXIMISE YOUR RETURN ON INVESTMENT
Choosing to invest in property is one of the most secure investments you can make. Major Australian cities are crying out for new developments to boost quality of living for their residents.
While many Australians still dream of living in a house, the popularity of units and apartments is soaring, meaning a multi-unit development can be a smart investment choice – find out if it’s the right decision for you.
Once you’ve decided to invest in a unit, flat or apartment, there are some key tips to keep in mind for maximising your return on investment.
1. Research your location
Where would you like to construct your investment property? While selecting a location that’s close to a CBD is an obvious choice, there are still advantages to be found in investing in a multi-unit development in rural areas.
2. Choose a reputable builder
The construction of a new multi-unit development is a huge decision and you want a builder with many years of success and a varied portfolio. Look for a builder with construction experience both large-scale and small. For example, Valley Homes has completed large-scale developments for clients including the Defence Housing Authority and the NSW Department of Housing. This success is in addition to the completion of small and medium investment projects.
3. Find the right tenants
Once the construction of your multi-unit development is complete, one of the most important ways to maximise your return on investment is attracting the right tenants. You’ve chosen a great location for your property and selected a reputable builder, now make sure you’ve done your research and you’re charging a reasonable rent.
4. Consider a property manager
One of the ways to help with tip number 3 is to think about putting your investment property in the hands of an experienced manager. Not only will they help you find reliable tenants, but they’ll also be able to ensure the ongoing security of your investment. Of course, there are costs involved, but that brings us to point number 5.
5. Understand the tax
One of the reasons property investment can be a great road to go down is the tax incentives. You can really ensure the return on your investment by making sure you’re claiming all the deductions you’re entitled to. These can include: the fees and commission your property manager charges, maintenance of your units, flats or apartments, council rates, insurance, travel to the property and more. You might also be able to negatively gear your investment and reduce the tax on your primary income. When it comes to tax, there’s a lot to get your head around and the ATO is a great place to start.
The development of a property as an investment should be an exciting experience and by following these tips you’ll be on track to maximise your return. Get the construction ball rolling today by talking to the Valley Homes team – they’re ready and waiting to help!