As the new year has begun, it is a good time for investors to review their investment portfolio. While easy enough to simply let things continue as they are, the more astute investor will cast their net further, and be regularly, or at least annually, considering ways to improve returns.
There are four main ways investors make money:
Capital growth, or the increase in the value of a property portfolio over time
Rental yields, or immediate cash flow
Tax benefits, including depreciation and negative gearing, and;
Forced appreciation, or creating capital growth through renovations or development
While investors ideally benefit from a combination, there’s a way investors can potentially benefit in all four – and that’s by making well considered improvements to their property, rather than simply maintaining or repairing it when a problem comes along.
Improvements might be relatively inexpensive, like replacing kitchen cupboard door knobs with stylish new ones or much bigger-ticket items, like extending, considerably renovating, or re-developing. They could also fall somewhere in between, like installing, or updating, heating or air conditioning,
Regardless of the particular improvements – and Noel Jones can advise on the features most likely to appeal to today’s tenants – selective, well-informed spending on an investment property can bring: higher rental returns; higher quality tenants; shorter vacancy times; tax benefits at the very least by way of claimable expenses; higher capital growth over time; and forced appreciation, in the case of major renovations or development.
While investment goals vary from person to person, and over time as individual circumstances change, the importance of reviewing an investment portfolio doesn’t change – nor does the importance of having the right team by your side.
At Noel Jones, ours is a proactive, comprehensive asset management approach. While collecting rent, minimising vacancy times, screening and selecting quality tenants, regularly inspecting properties, and generally managing day-to-day matters remain paramount, our highly-trained management team are adept at considering overall profit.
If you would like a personalised review of your investment property please contact yout local Noel Jones expert for further information.