How to Optimise Your Property Portfolio.
Supercharging your investments is a matter of strategic planning and effective management, without which both your time and money will suffer.
Our buyer’s agents specialise in strategies and services to ensure your investments thrive – these include, but are not limited to, the five steps below.
1. Acquire profit-generating properties
Keep an eye on local markets experiencing increased buyer or renter demand. Research the history of neighbourhoods, review what has been sold and when it was sold, attend open houses and auctions, and compare the state of play. Be on the lookout for properties with potential for rental yield and market value growth.
2. Manage tenant relationships
Determine the best way to lease out your apartment. Short-term typically generates higher rental incomes but involves more management than long-term. Regardless of how you rent out your property, it’s a good idea to have property management in place. A good property management team will not only maintain tenant relationships to ensure occupancy, they will also free up your time to focus on other things like optimising your property portfolio.
3. Manage upkeep
Property portfolios require constant maintenance. Keep an eye on local and global real estate trends to ensure that you are meeting the expectations of the rental market. Minor renovations and repairs can add huge value to a property and its rental yield. A good property manager is essential to managing the upkeep of your property and will make a big difference to the results of your investment.
4. Manage capital and operating expenses
A property portfolio comes with two types of expenses. Operating expenses (OPEX) and capital expenses (CAPEX). OPEX is required for the day-to-day costs of owning a property, such as utilities, repairs, insurance, taxes, etc. CAPEX creates a benefit in the future, such as using collateral or taking on debt to either buy a new asset or add to the value of an existing asset. OPEX and CAPEX are treated differently for accounting and tax purposes. CAPEX is recorded as assets on your balance sheet rather than as an expense on your income statement. As an investor, it’s crucial to understand the difference between the two expenses and manage them accordingly.
5. Optimise performance and value
Keep your finger on the pulse with the latest market changes. Consistently review the market value of your property and its rental potential. The market fluxes depending on supply and demand. If you don’t stay on top of the market then you could lose potential income. A good portfolio manager will keep you updated on the performance and value of your property and offer expert optimisation advice along the journey.
The Maker Difference.
As you can see, owning investment property is not as simple as buying an apartment and filling it with tenants. A successful property portfolio requires strategic planning and management, something that many investors simply don’t fully understand or don’t have time to commit to.
Our agents specialise in strategies and services to optimise your investments. We can support you from buying properties to choosing a property manager, upkeep, risks and expense, to selling when the right opportunity presents. View Our Services for more information about how we can help you to optimise your property portfolio.
Whether you are looking for support in hotspots like Sydney, Melbourne, Brisbane, Adelaide, Perth, the Gold Coast, the Sunshine Coast, or in any other city or regional centre in Australia, we have the network to help you realise your property goals sooner – Contact us today.
Interested in finding out more? Send us a message and we will be in touch.