C&G’s Guide to Avoiding Common Investment Mistakes

Property investment can be rewarding, even if it is not always a straightforward project. So long as changing interest rates and fluctuating conditions remain part of the property market’s landscape, it can be difficult to determine if you’re receiving the best return on your investment. With the help of an expert property manager, you should feel confident in your investment portfolio’s performance. Want to avoid common real estate investment mistakes? The latest C&G blog is here to help, supporting you to achieve great results.

Debt management

Ensure you manage your investment debts separately – in particular non-tax-deductible and tax-deductible debts! The loan on your investment asset is most likely the latter, and may reward you with benefits come tax time. Potentially, you’ll be able to take advantage of tax depreciation deductions and claim borrowing expenses. Quantity Surveyors and accountants can assist with this area. Need a referral to a trust local professional? Just ask.

Reconsidering rent

Rent is a crucial component of your investment, and it’s important to get your income right. If you’ve commanded the same rent for the past decade, you may pleasantly discover that a more competitive rate would be paid by the market. Remember, however, that rent which is about market value can leave a property vacant for long periods of time, damaging overall return on investment. Re-evaluate your asset’s income at the conclusion of every tenancy before drawing a new agreement. This way you will be charging a competitive amount and preventing unnecessary vacancy periods!

Doing It All Yourself

Some investors try to juggle everything about their asset by themselves – from writing condition reports (or not!) to estimating market rent. While this may save outsourcing costs, it can leave little time for engaging in strategies that optimise your investment. It can also eat into evenings and weekends, in addition to exposing you to unnecessary risks due to non-compliance. The value of engaging an expert property manager cannot be underestimated. Not only are their fees tax deductible, they’ll lift a world of administration and market analysis from your shoulders. A great property manager will help you identify potential upgrades to increase your returns, and keep your abreast of legislative changes that may apply.  

Chisholm and Gamon live and breathe property! If your investment is of the real estate kind, do not hesitate to reach out with any questions or concerns. Our experienced team of property managers and real estate experts will guide you to enjoy the best possible return on your asset.

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