Minimising your property investment risks

By the resi financial blog team, 04 September 2013

How do i minimise my property investment risks

If you are looking for a way to secure a great long-term investment, and to boost your income then you might want to consider investing in a rental property.

But like all investments, property can have its risks, so it is important that you assess these and devise a few strategies for how to minimise them.

Tenants

The business of property investment takes a lot of time and dedication - especially if you have accumulated an extensive portfolio. So when it comes to dealing with your tenants, it may be a good idea to look into using the services of a property manager.

If your tenants are unruly or cause damage to your investment property, then you will have a property manager who is well-versed in residential tenancy law by your side to take care of the situation.

A property manager can also screen prospective tenants, conduct viewings and draw up tenancy agreements - meaning that you can be assured that the agreement is sound.

Finance

Using a variable rate loan for your investment properties means that the amount that you pay towards your monthly repayments can change. This means that as an investor, you may find it more beneficial to secure your investment property loans at a fixed rate. Another option is to fix part of your loan and keep some of it at a variable rate.

Doing this will mean that you can ensure that your loan - or parts of your loan - will be secure at a low rate for a fixed amount of time.

However, it may also mean that you may miss out on some of the best variable home loan rates when they fluctuate to a low.

For expert guidance and advice for property investment loans, contact one of the loan specialists at resi today.

Categories: Property Investment