Top 5 Tips for Maximising Your Investment Property In 2024

Real estate remains a popular investment choice in Australia, but the landscape has evolved significantly in recent years. With rising interest rates, a competitive rental market, and increasing demand for sustainable living, it’s essential to adapt your strategies. Whether you’re renting long-term or planning to sell, here are five updated tips from LINK Living to help you get the most out of your investment property in 2024.

1. Be smart about renovations 

Renovating your property can be an effective way to increase its value and rental price, but it serves well to be selective about what you do. Something inexpensive and easy like a new coat of paint could do wonders for the value, while you could spend hundreds and thousands on renovations that only marginally improve the price. It’s important to evaluate and compare the renovation price with its projected increase in market value before injecting any money. You want to make sure your property is modern and appeals to the current market, while not wasting money on unnecessary upgrades. 

2. Managing rental price 

Obviously, having a higher price means you get paid more, but having a low price makes it easier to find tenants and build loyalty. Ideally, you want to strike a balance between the two, and occasionally adjust the price based on the market. Australia’s rental market in 2024 is experiencing record-low vacancy rates in many cities, which normally indicates a positive. Keeping one tenant loyal for a lower price may be more profitable than constantly getting new ones, with the weeks in-between earning you no money. It all depends on the market, and having regular appraisals from a property manager can help to ensure that you are getting the maximum value from rent.

3. Know your taxes 

In 2024, tax benefits for investment property owners remain one of the most effective ways to maximize your returns.You are also able to save money through tax deductions by taking into account asset depreciation and making claims for either capital works or plant and equipment. The former includes permanent structures and fixtures, while the latter is furniture, appliances, carpets etc. Getting a quantity surveyor will help you to determine what you can claim. This may cost you anywhere from $300-$700 dollars but could save you thousands in tax deductions. You can also claim on your tax return, the expenses for renting out a property, which includes interest on the investment loan, property management fees, legal fees and maintenance, among other things. It pays to know what you can get back. 

4. Be prepared for the long-term 

This may be an obvious statement, but it is surprising how many people expect immediate results. While property remains a strong long-term investment, 2024 has brought increased challenges for property investors, especially with rising interest rates and inflation. It’s essential to revisit your mortgage strategy in light of these changes and consider refinancing to lock in lower rates or restructure your loans to reduce repayments.Hold on to the property for as long as you can and continue paying off the mortgage. Once you have built up your equity, you may want to consider investing in another property. It is important to carefully assess the risk if you decide on this and ensure you don’t stretch yourself too thin.  

5. Find the right property manager 

The final tip is the most important, as it will help you with all the other tips as well. A good property manager will be able to give you ongoing advice and ensure you are getting the most out of your property. Whether this is recommending high ROI renovations, finding the best rental price, helping you get the most back from your taxes or giving future investment advice, finding a good property manager can greatly increase your returns. In 2024, property managers are increasingly leveraging digital solutions to streamline operations and maximize returns. These tools not only save time but also ensure that your property is always priced competitively and well-maintained. A skilled property manager will help you navigate the complexities of the market, keep your property occupied with quality tenants, and ensure you are compliant with evolving laws and regulations and much more, allowing you to relax in knowing that you’re in safe hands.

Conclusion 

These are just some of our many tips to help you get the most value out of your investment property. Researching the market and the law can give you some valuable insight on maximising your profits, while consulting a property manager will give provide you with expert experience. If you are looking for a trusted property manager, don’t hesitate to contact LINK Living for a free appraisal.