The Ideal Concept
The concept of having an investment property is a great way to increase your net worth, and in the long run give you the ability to have a passive income in retirement.
In an ideal world, you buy a property, it is rented out all the time with great tenants. They look after the property beautifully; they are never behind in their rent and they never party.
You manage to keep the rents going up to cover any increases in costs that come along.
The cost of the mortgage, the rates, insurance and all the other outgoings are all covered by the rent that is coming in. There is minimal maintenance to be done - everything works perfectly.
Major maintenance like blown hot water system, air conditioning – no, these things don't go wrong.
In ten years’, time you have doubled you money. As a bonus, along the way you have managed to get a deduction from the ATO for the building depreciation and get a tax refund!
I wish we lived in a perfect world, but this just isn't the way it is.
Tenants can be great, but they can be just awful.
Things are going to go wrong in the property - just when you least want them to. I didn't see the GFC coming, nor how long it would last - did you?
Having an Investment Property
We never started out to become a Real Estate Agent, nor did we ever intend to be Property Managers. It all just happened by default, and we believe this is part of the reason that we are different to most other agencies you will come across. We are Property Investors first and foremost – we are Property Managers as a result of this.