Page 13 - Welcome Home Magazine October 2021

If the desired rent is $500 per week, this means the investor is losing $500 every week the property remains
empty. By dropping the rent by $20 or so per week, an investor could likely convince a potential renter to
sign on the dotted line. Across a 12-month period, this would only lead to roughly $960 less income – or
less than the equivalent of two weeks’ vacancy at $500 per week.

5. Assuming you know where the value is
Investment decisions should ideally be made based on the potential for wealth generation – something
you can’t “just know”, but need to analyse the numbers to determine.

Including historical growth figures, local employment drivers, unemployment rates, vacancy rates, yield
and population growth, to name a few, these metrics will provide a more informed indication of whether a
property will perform or simply provide a trendy postcode.

6. Managing your own property
More and more investors seem to think they can do it all, including people attempting to take care of every
aspect of managing an investment property. In the process, they spend more time dealing with tenant
complaints than working on the next phase of their investment strategy.

Hiring a property manager will not only allow you to focus on the value-added tasks of your investment
business, it will make sure you keep up with any legislative changes, too.