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The property market is constantly changing, and with property prices trending downwards and more rate hikes in store, property investors who want to succeed must be proactive and stay ahead of the curve.
In 2023, there are several important resolutions that property investors should make in order to maximize their returns and achieve their investment goals. From diversifying their portfolios and making data-driven decisions, to focusing on long-term goals and seeking professional help, these resolutions can help property investors to succeed in the ever-changing real estate market.
1. Refinance your loan
Refinancing your properties can be a smart way to free up some capital and lower your monthly mortgage payments. It is a good idea to review your current mortgage terms and interest rates and compare them to current market rates. If you find that you can get a better deal, it may be worth refinancing your properties in order to take advantage of the lower rates. You can also use refinancing to consolidate your debts, which can help to reduce your monthly payments and improve your cash flow.
2. Diversify your portfolio
One of the most important resolutions for property investors in 2023 is to diversify their portfolios. This means investing in different types of properties, in different locations, and with different rental purposes. By spreading your investments across different properties, you minimise the risk of losing all your investments if one property underperforms. A diversified portfolio can also help to balance out fluctuations in the real estate market.
3. Check the terms of your tenancy agreement
It is important to regularly review the terms of your tenancy agreement to ensure that it is up to date and reflects your current needs as a landlord. This can include updating the rent amount, changing the lease term, or adding any new clauses. It is also a good idea to have a lawyer review the agreement to ensure that it is legally binding and protects your interests as a landlord.
4. Take out landlord insurance
As a property investor, it is important to protect your investments against potential risks. This is where landlord insurance comes in. This type of insurance covers the cost of repairs and renovations to your property in the event of damage caused by your tenants. It also covers the cost of legal fees if you need to take legal action against a tenant. It is a good idea to take out landlord insurance to protect your investments and ensure that you are covered in the event of any unexpected damages or losses.
5. Get a depreciation schedule
A depreciation schedule is a useful tool for property investors that helps to determine the decline in value of your property over time. This information can be used to claim tax deductions for the wear and tear on your investment property. If you haven’t already, it is a good idea to get a depreciation schedule drawn up for your properties. This will ensure that you are maximizing your tax benefits and maximizing your returns on your investments.
If you are ready to get started on your investment journey, call us to chat with a friendly lending specialist, chat with us online or check out our competitive low-interest investment home loans.