Plenty is being written at the moment about an imminent Australian housing crash, where prices are going to dramatically fall, maybe even by 30%.
Owner occupiers are really only affected, if they are planning to sell their house.
If this is the case, it makes sense to sell before the crash reaches the worse point.
Big housing downturns, tend to happen over several years, so once the downturn starts and prices start to decay, it is not necessarily too late to get out.
What about property investors?
Here are some tips from our investor friends, who have started to implement strategies already:
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Don’t make decisions that are based on fear and emotion-run your investing like a business
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Don’t sell just because the market is sliding, prices will always bounce back to their equilibrium
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If you have extra cash reserves, don’t sell your property-wait it out
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Conduct cost benefit analysis to keep your expenses in check
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Take advantage of as many tax benefits as you can
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Buy rental properties with below median rent, to retain steady occupancy rates, irrespective of fluctuations in the market
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Keep your tenants happy- maintain a good relationship with tenants so that they never want to leave your property
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Conduct the right cost analysis/estimations regarding cash flow (inbound and outbound)
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Always underestimate rental yield and overestimate expenses
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Pay off loans as quickly as you can to increase your leverage
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Diversify your portfolio – invest in different real estate classes.
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Use RealRenta to automatically manage your investment properties- don’t waste money on expensive middlemen.
Some of our landlords are amongst the most successful property investors in Australia. They don’t believe in handing over their investment income to overblown property managers.
Use RealRenta for free now for up to 2 months and you will never pay a middleman again!
