Are you thinking about investing in Adelaide property? Navigating the world of property investing can be an overwhelming and stressful experience. There’s certainly no shortage of information out there, so it’s important to ensure the advice you follow is correct.
Salvan Property Management are Adelaide property managers that specialise in tailoring solutions to help property investors achieve their financial goals with a stress-free, hands-on approach. If you’re new to property investment, you don’t have to endure bad experiences. We’re here to help you from start to finish.
Whether you’re a seasoned Adelaide landlord maintaining a string of properties or a first-time investor, the same rules still apply. But even an investing veteran can make a costly mistake. So what are the rules? We’ve put together our top 5 tips for investing in Adelaide property.
Why should you invest in property?
No one said property investment was easy – it can take months to research areas to find the right property. And then there’s the negotiating, turnaround times and paperwork to deal with.
But there are many benefits to investing in property. With well-chosen properties and wise investments, Adelaide landlords can enjoy the perks of their assets for years to come.
One of the key benefits of property investing is cash flow. Cash flow is the net income from a real estate investment after mortgage payments and operating expenses have been made.
As you pay off more of the mortgage, your cash flow increases – building up your equity and creating a passive income.
Tax breaks and deductions
Adelaide landlords can take advantage of several tax breaks and deductions that can save money during tax time. You should be able to deduct the costs of owning, operating and managing a property.
And since the cost of buying, maintaining and renovating an investment property can be depreciated, you benefit from decades of deductions that help lower your taxed income.
Real estate has a low, and sometimes negative, correlation with other major asset classes. This means that adding an investment property to your portfolio of diversified assets can lower portfolio volatility and provide a higher return per unit of risk.
Do your research when investing in Adelaide property
2020 was a phenomenal year for the Adelaide property market, with a 6% increase in house price growth in 12 months. When it comes to investing in Adelaide property, it’s all about location, location, location! So start with the most desirable suburbs in Adelaide, and study the market in that area.
Our top picks for the best suburbs to invest in Adelaide are:
Generally, properties close to the city, business district or universities make good investments. For potential tenants, central locations are often in most demand. However, most properties close to the city are apartments or units. So think about the type of tenant you would like and what kind of property would attract them.
Properties further out from Adelaide are often more cost-effective and larger. So if you would rather invest in an Adelaide house, consider areas within an easy commute to the city.
A good Adelaide property investor makes decisions based on objective data – not on what they like or ‘gut feel’. It may sound harsh, but it’s essential to break the tie between emotion and decision-making when investing in Adelaide property.
It’s easy to allow your emotions to make decisions for you – especially when you find a house that you love. But your personal preferences may not always result in the best outcome. Identify when you feel emotion present, and turn to a trusted third party for an unbiased opinion. Alternatively, online tools such as Smart Property Investment or Real Estate Investar has plenty of data about every Australian suburb, which can help you make your decision.
Remember, investing in Adelaide property is all about making money. So think about which properties and factors will earn you the most return on investment (ROI).
Consider investing ‘off-plan’
You can often find reputable developers, choose the best apartments and get the best deals by buying off-plan.
Off-the-plan is buying a property that hasn’t been built yet – meaning that you are investing in a property based on the plans alone. But remember to do your homework first:
- Research your developer and do a background check. Ensure that the company is reputable and has a good track record of completing projects on time.
- Get in first. You’ll not only get your pick of the lot, but you’ll also be more likely to negotiate a lower price.
- Check the specifications. You won’t be able to walk around the property and inspect the space. So go over the plan carefully and ask plenty of questions.
Patience is a virtue, right? That’s certainly true for property investing – especially in Adelaide.
As exciting as investing in Adelaide property is, don’t make any rash decisions. Be prepared to wait it out. If you’re impatient, you may make a poor choice or wrong decision. This could end up costing you a lot of time and money – both of which could have been saved if you had just waited for the ideal property to turn up.
This is where all your research comes into play. Don’t stray from your hard-earned data, and wait it out. There will always be another opportunity, but you can never get your time and money back.
Hire a Property Manager
If you’re investing from overseas or interstate, or if you’re simply a busy professional planning for retirement, chances are you’re short on time. A Property Manager can provide an independent assessment of rental appraisal on your property, find the highest achievable rent, and optimise your ROI. They also know how to effectively advertise your property, securing the right tenant for your property.
With over 25 years of experience, Salvan Property Management understands the trials and tribulations associated with using real estate companies, strata managers and large companies to look after your investment property. We specialise in finding the right tenant suited to your apartment, house, townhouse or unit, so you receive consistent income and a better return on your investment.
Natalie Salvati, Principal of Salvan Property Management, is a registered Real Estate Agent (RLA 276287) with over 20 years of experience in the property management market. She specialises in looking after metropolitan Adelaide landlords, or as we like to say, ‘property investors’. Request a free property appraisal with Natalie here.