New year's resolutions every property investor should put on their list
A new year is a great opportunity to knock your bad property habits down and start gaining some better ones.
Here are our picks for what we will be putting on our lists:
1) No longer assume that your strategy is the only strategy that works
Other asset classes can work too, and ignoring other investments could mean ignoring diversification. Also, remember that within property that are a number of different techniques to invest, from subdividing and renovating to capital growth 'buy and hold' to buying overseas. While they don't all suit everyone, don't allow your suitability to close other people off to something that might suit them better.
2) Due diligence
Whatever this means to you, have a look at your process. If you think you're doing enough, see if there's one more thing you can check. Don't scrimp!
3) Review your finances and go over that portfolio at least one more time
Get some advice from your broker, accountant and financial planner, and sit down and review your progress and your own plans. Property investors rarely give themselves time to review their goals - if you do this then you're one of a minority - and it's worth regularly doing a "check up" on your progress.
4) If a tenant has a maintenance or repair issue, hop to it quickly
Remember that it's your tenant's home as much as it is your investment property. Make sure that you get to their requests in a timely fashion (or that you ensure your property manager does), and that you pay anything necessary promptly. Keep good tenants happy, and they'll keep you happy - it's a two way street.
5) Plan for the worst case scenario
Don't put your head in the clouds and hope for the best. Ensure you know what the outcome might be if the unthinkable happens and there's death, divorce or something else.
See my Letter from the editor here for more.
6) Ask for advice from multiple people, and always question what you hear
We're always told that you don't know what you don't know, which is a fair analysis, however you always don't know what other people don't know. Make sure you ask around and check credentials.