Investing Takes Time & Planning
With Scott Mackey
When it comes to building an investment portfolio in the Bundaberg region, it pays to listen to expert advice.
RE/MAX Precision Principal, Scott Mackey, has plenty of experience building not only his own investment multi-tiered portfolio, but also client’s investment portfolio.
Mr Mackey said there were plenty of rules when it comes to making smart decisions, and listening to your head and not your heart is just one of them.
“You should always base your investment property on research and data,” he said.
“People need to consider rental returns, location, sustainability of house prices and house maintenance.”
He said buying investment properties does not make you a rich overnight.
“People think if they buy a couple of investment properties and they will be instant millionaires,” he said.
“You can use gains from your first investment property to buy another investment property, and continue to leverage off each property to buy another.
“No other commodity lets you do this.”
Although, he warns it is important to understand what cash flow is needed before making a purchase.
“People should seek professional financial advice before jumping into buying investments.”
Mr Mackey said taking time to understand the property market will ensure you do not buy the wrong property.
“If you understand the market, what the value of homes is, and what the rental returns are, you are in a much better position to make an informed decision.”
Mr Mackey said planning and setting goals were a great way to stay on track to building a multi-tiered portfolio.
When the first investment is purchased it is vital to consider property management.
“People try to save money by managing their properties themselves,” he said.
“But when you build up to 20 homes and you have to find tenants for each house, conduct maintenance on each home and collect rent it becomes a full-time job.
“You are far better off putting your properties in the hands of a professional manager who understands the ins and outs of everything from finding tenants to staying up-to-date with the latest Government policies. It is also a tax deduction as well as insurance.”
If you’re considering running your investment as short stay accommodation, then the team at RE/MAX Precision can help you. We’re currently managing the Bundaberg and coastal region’s largest portfolio of short-term rentals. Is this the way forward for your property?
If you are looking to purchase an investment, have a chat about the current property market or discuss your options of long or short-term rentals, contact us today.
