When you decide to invest in property, it's not just a matter of buying the home, sitting back and watching the money roll in. Being an investor is an active role, and one of the tasks that can take up the most effort is managing your cash flow.
If you've got an investment property in Carlton and find your cash flow needs a bit of a leg up, consider these three strategies.
If your property has a lot of empty space, such as in a large back yard or a garage that is going unused, consider taking advantage of it to create more income for yourself. You could rent out the garage as an extra room, or even build a granny flat in your yard. Once you pay off the initial capital, you could charge more rent or even rent it out separately if it's in accordance with state rules.
Most landlords don't allow pets in their properties, fearing that the animals will wreak havoc on the quality of the home. Yet many renters have cherished pets that they can't bear to live without, and would gladly pay extra to have their animal friend live with them. If you make your property pet friendly, not only will you corner a market that is largely uncatered to, you'll also be able to charge a little more for rent for your real estate in St George.
It's important to conduct a review of your home loan from time to time and make sure it's still working for you. If you find your mortgage is the main cause of grief when it comes to your cash flow, a few tweaks could be a lifesaver. You might be able to refinance to a loan with a better rate, for instance, or take out an offset account and place your savings in there to minimise the amount of interest you pay each month. Talk to a professional to see what your options are.