Smart investing for the long term

01 May 2016

At Quinovic we find investors who set long term goals and consistently make pragmatic decisions about buying and owning properties tend to enjoy the greatest rewards.

The smart moves start when the property is acquired and continue with regular decision-making with input from the people who understand you and your objectives, and can tailor advice to help you achieve these.

Key considerations include:

  1. Follow cycles (market conditions). Tap into your team and seek regular market intelligence about what is happening in the suburb and city. Evaluate the factors that affect supply and demand in the short term rental market, including jobs / incomes, affordability, population growth, and longer term growth in the property market. This should include supply and demand for new building stock, population growth and income growth.
  2. What is happening economically? With property this should include where are we in the cycle, what is happening with rentals, incomes, affordability, and what societal trends affect the desirability of your properties etc.
  3. Property and economic cycles provide opportunities, so secure financing when in boom times and utilise equity and financing in times of bust. The key is to be ready to invest/reinvest.
  4. Disciplined rental management includes evaluating the market value and having disciplined regular rent reviews, in consultation with your property manager.
  5. Maintenance is important – respect your property and your tenants will respect your property. Make decisions that enhance the security and growth of your rental income. Consider enhancements such as insulation, moisture heating to secure rental income and achieve good returns on your investment.
  6. Regularly appraise market values for both rent and resale value, and find out what is driving prices and values locally.
  7. Don’t live in your spreadsheet – but don’t live without your spreadsheet. Stay on top of the financial measurement of performance for your portfolio.
  8. Measure, learn, modify and achieve objectives. Establish regular meetings with your property team, to stay in touch and on track. Your Quinovic principal and property manager are trusted and knowledgeable sources of advice to help you succeed with your investment.

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