5 mistakes to avoid when investing in Brisbane property
Investing in Brisbane property is a strategy many people will undertake in 2019. Commentators have been applauding the steadiness of Brisbane property in recent months where we have concurrently seen the juggernauts of Australian property take a backwards slide (we’re talking about you Sydney and Melbourne). If buying a property in Brisbane is part of your investment strategy here are five investment mistakes to be wary of.
Avoid risk areas
If you’re investing in Brisbane property you’ll likely have an array of property types, locations and price points to choose from. Just make sure that the value of the property you choose isn’t going to be impacted by a risk area. Risk areas include those affected by single industries like mining, farming, tourism, or areas where an asset type has been oversupplied (like apartments in inner city Brisbane and Melbourne). To avoid this investment mistake look for reliable, easy-to-rent growth assets such as houses in the middle to outer suburbs where you can buy below the median price.
Avoid selling your investment property if it drops in value
While Brisbane has seen steady performance, not every property will be immune to a downturn. If your investment property does drop in value remember that real estate is a mid to long term game and that the market generally swings in cycles. If you don’t need to sell, try to wait out the down turn. Hopefully your patience pays off and the market turns enough to see your property rise in value.
Don’t be a lazy landlord
Investing in Brisbane property can be costly. But it doesn’t have to be. As a landlord you need to keep your property in good condition. Keeping your property looking good will make attracting and keeping tenants easier. Ensure you approve maintenance as quickly as you can and ensure that your tenants feel comfortable reporting any issues. Remember that keeping tenants is cheaper than having to find new ones. Every time you have to find a new tenant you’ll need to pay for advertising, a letting fee (if using a real estate agent), and potentially extra maintenance to get your investment property to a standard that can compete with the other available properties in your area.
Don’t accept tenants because you need the income
Questionable tenants never end up being a good decision. If your property manager has reviewed an application and advised that the tenant seems questionable, take their advice. A renter with a good rental history is what every landlord wants. These tenants will pay their rent on time, and look after your property. Questionable tenants can do any number of things that will see your investment completely ruined. If you’re ever in doubt make sure to discuss your questions with your property manager. They do this every day and can provide a wealth of insight when it comes to selecting tenants.
Insurance is the best insurance
We advise all of our Brisbane property investors to consider taking out landlord insurance. If something goes wrong it is important to have insurance that will cover you and assist you to maintain your investment property. When deciding on a policy make sure that it covers all of the key areas you’ll need covered (e.g. damage, loss of rent, etc.). And don’t allow insurance policies to lapse.
Sum up
These are five investment mistakes that are best avoided when investing in Brisbane property. If you would like help with finding an investment property, or if you’d like help with managing your investment property, you can contact our agents here.
