Direct property investment is not a passive occupation: Richard Wakelin

Direct property investment has never been a passive occupation, buyers advocate Richard Wakelin says.

"Unlike shares or bonds, one can’t set and forget for years on end.

"Tenants must be found, served and replaced from time to time.

"Checking in regularly with the managing agent should be an ingrained discipline to maintain an even keel and avoid surprises. 

"And, every few years, the property will require renovations."

Richard Wakelin says depending on the starting point and the size of the property, a modest renovation can often be done for as little as $5,000 and typically for between $10,000 and $20,000.

"You tend not to achieve the same magnitude of uplift in rent level and property value as the designer-level renovation delivers, but with rents often jumping by 20 per cent or so, the percentage return on the outlay may well be superior. 

"Moreover, less ambitious renovations are also less likely to over-run, go wrong or be rejected by tenants.

"Good property managers know what the pool of renters is looking for.

"And they also use the best tradespeople. 

"So if your property is tired, book a makeover meeting with your property manager," he said.

RICHARD WAKELIN is the director and founder of Wakelin Property Advisory.

Richard is hosting a webinar on how to prepare to sell your home or investment property this spring at 8pm Wednesday, August 12. You can sign up here.