Do you have many “what if” questions buzzing around in your head? Are they keeping you awake at night? Here are our six key strategies to reduce your property investor’s anxiety and get you on your way to stress free investing.
1. Speak To The Right People
Remember that anxiety is a feeling, i.e. an emotional reaction that, amongst many other things, can be caused by fear, the unknown and then a lot of ‘what if’ questions. This may then affect your confidence; thus affecting you and any rash decisions you may make now and in the future.
Overcome this by really understanding your current situation, educating yourself on the current economic climate, having the right support network in place and guidance from mentors or professionals and always remember to try to take the emotion out. Think of why you are doing this and look forward ten years from now. You do not want the “I should not have sold that property” to haunt you in the future – only if I had kept it. Treat your investment property like a business; because that’s exactly what it is, you need to ensure you have the right strategy in place, clear objectives and goals and the right people and team by your side.
Search for like-minded people you can talk to, bounce ideas off and just voice your concerns as this will greatly assist you. If you have family and friends that are always negative about investing, in any form, then keep those conversations at arm’s length from them because only you know why you are doing it and what your end goal is. NEVER lose sight of the end goal. Nothing is easy and we all have to work hard to get what we want, so concentrate on losing those fears and put your head down. Your ‘future self’ will thank you when you are reaching retirement.
Ensuring that you have the right insurances in place and that you are not under insured should be a priority before commencing your investment journey.
There are many insurers that will offer you the whole package i.e. building and landlord insurance, for investment properties. We recommend you see a good insurance broker to guide you through choosing your policies, here is a list of things you should consider when choosing.
- Loss of rent due to default; tenant eviction due to a court order; tenants obtaining a hardship order and unexpected death of tenant
- Damage caused by the tenant and/or guests
- Legal Liability
- Loss of rent due to the property being uninhabitable
- Complete or partial destruction of your property
- Natural disasters such as storm, fire, flood, earthquake, tsunami and “ocean movements” and civil unrest or rioting
- Carpets, curtains, furnishings, furniture (if rented as a furnished property), household goods, internal blinds, loose floor coverings, light fittings which are not permanently fixed to the buildings, domestic appliances and utensils.
*This is not a fully comprehensive list and should only be referenced as a guide. We recommend you always speak with an insurance broker to ensure you have the right cover for your situation.
3. Hold Onto Good Tenants
A vacant property can bring on a mountain of stress to any property investor. Read our blog with tips on tenanting a property here.
4. Capital Growth
The market is sure to fluctuate and property investment should never be thought of as a short term strategy. You will be constantly worrying if you think this way, property is for 10+ years down the track not today. When selecting your property, always buy with cash-flow in mind; make sure the property can sustain itself. You are then more likely to hold onto it for the long term, increasing your chances of getting the capital growth you desire.
5. Utilise tax variations
Many people think they could never afford an investment property on their current wage and worry about the added financial pressure it will impose on them and their family. One of the best ways to increase your cash flow to fund your investment is to submit an annual tax variation to the Australian Tax Office. By doing so, taxpayers entitled to a large refund from negatively geared investment properties can access the funds held by the Australian Tax Office in their weekly/fortnightly/monthly pay rather than waiting until their annual tax return is completed and lodged at the end of the financial year.
6. Stay focused
Our last tip is simple but many of us forget to or are too busy to do it; revisit your goals. By enlisting the service of a property investment specialist such as Property Equity Builders, you are not only tapping into years of investment knowledge and experience, you are also recruiting an extra pair of hands to help keep your goals on track. Property Equity Builders offer six monthly “health checks” after setting you up with your initial investment, so you will always know that you are heading in the right direction.
In our next blog, we will discuss what to ask your finance broker when setting up your investment’s finances. If you can’t wait and want to start today or need help with current projects that are putting too much pressure on you, an appointment with one of our consultants will help. We tailor these structures plus many more to suit your individual situation. Book here, our consultations are free and there is no obligation.
*This article is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser.
PEB Property Group is a complete property advisory service for Perth families. Offices are located in Inglewood and Willetton, Perth, Western Australia and offer service in - Financial Planning · Finance Broking · Property Management · Property Sales · Property Investment · Development
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