How to lose money on your property investments - and how not to!
How to lose money on your property investments - and how not to!
Property investing is a fun and profitable investment method. Owning real estate can fast track your wealth, but it really pays to keep on top of your real estate interests and make sure that you understand what is happening in the market.
Following a recent discussion with several real estate agents I found out recently that I had been losing over $5000 per year. One of my properties should have been renting out for approximately $100 per week more than it was. That's a big amount of money that should have been in my bank account!
When we invest in property we usually entrust our business asset to the hands of a property manager. In many instances this property manager is a fine professional doing their best to ensure your rent gets paid and your property is looked after. But not all property managers are investors or understand the business of investing so it is your responsibility to take on this role. After all, who is more interested in the return of your investments than you?
Here are a few tips for making sure you don't lose money unwittingly:
* Know the value of your properties - keep an eye on the market.
* Know the rental market value of your properties - once again, keep an eye on the market yourself.
* Regularly re-assess these values and review dates and keep them documented for easy reference.
* Communicate with your manager regularly and find out from them what things they believe you can do with your property to increase it's value and the rental yield.
* Ask for a periodic property valuation and rental appraisal from your manager - I would suggest at least 6 monthly.