How Small Investors can Manage Property Risks

One of the more uplifting trends we have seen is that a fair portion of the land that we have placed for sale in Geraldton Heights Estate is being purchased by small investors. The idea is to turn them into house and land packages and rent them to those who want to experience the Geraldton sea change lifestyle but can’t yet make the transition from renters to homeowners.

How Small Investors can Manage Property Risks

Everybody wins: the investor is developing equity and building a portfolio. The renter gets to rent a nice property in a quality estate at a reasonable price. We love to see someone buy their first investment property here at Geraldton Heights Estate. However, before you become a small investor, you should know about the risks and how to manage them.

Fear of Not Finding the Right Tenant

We are going to say one thing right up front: hire an experienced property manager. Geraldton has a number of highly recommended property managers who can look after your property. A good property manager will make you a lot more money than you will ever pay for his or her services.

New homes immediately go to the top of the market due to supply and demand. If you were a renter who looked at an old home and a new home that have similar dimensions and features and rent at the same price, which one would you be more likely to choose?

Fear of Interest Rate Rise

If you are using an interest only loan to control rental property, an RBA decision to raise interest rates can add to your monthly costs. While you can’t control what the RBA is going to do, you can control the effects by building a “buffer” into your budget or making sure that you have enough extra money set aside to defray extra costs shall they arise.

Call Geraldton Heights Estate

Want a new investment property? Call (08) 9301 4445.