Proactive steps to set your portfolio up for success in 2020
As we welcome the start of the New Year, it’s a great time to revisit your investment goals and start planning for the months ahead. With Perth’s property market now clearly showing a number of improvements, the groundwork you put in now could be crucial to helping you take advantage of upcoming market opportunities. Whether you’re planning to get back into the market or looking to improve the performance of your existing property portfolio, here are some key tips to set yourself up for investment success in 2020.
Be ready to make a move
If you plan to grow your portfolio in 2020, access to finance is going to be crucial. With banks continuing to scrutinise borrower’s living expenses, it’s never been more important to be prepared when it comes to applying for a loan. Getting your finances in order early will help to put you in a stronger position with lenders, meaning you’ll be ready to make a move when opportunities come up.
Equally, if you have an existing portfolio and haven’t reviewed your loans in the past 12 months, it’s a good time to get back in touch with your mortgage broker to assess whether you could be making savings on your current repayments, especially in light of recent rate cuts. Any savings you make now could put you in a stronger position further down the line when you’re ready to get back into the market.
Strategically align your rentals to the market
Perth’s rental market continued to show improvements across 2019, and with rental competition poised to increase further in 2020, there’s never been a better time to review your rental strategy to ensure you’re in a position to leverage future market movements. This could mean looking at potential improvements to enhance the rentability and appeal of your property, as well as reviewing your leases for any clauses or terms that could improve your property’s performance as the market transitions. If you would like to talk to our property management team about strategies to maximise your property’s rental performance in 2020, get in touch with us via the Momentum wealth website.
Make sure your research is right
With sales and rental activity remaining mixed across the different segments of Perth’s property market, there’s never been a more important time to get to grips with your local area knowledge. Being well-informed about the demand and supply factors impacting individual areas will not only help you avoid problematic suburbs such as those still facing a significant excess of stock, but more importantly will enable you to identify and act on opportunities quickly when they arise – something which will become increasingly important as buyer competition increases. For tips on researching properties in a recovering market, check out our recent blog on the topic.
Work with your advisors
Especially as things are shifting in 2020, you want to ensure you have the necessary advice and support at hand so that when you see the right opportunity, you are able to move quickly. With this in mind, it’s a good time to get back in touch with your accountant, financial advisor and any other professionals you use during the investment process to ensure your team are aligned with your plans for the year and on hand to help you make fast, informed decisions.
If you would like to speak to our property advisors about how we can help you with your property goals in 2020, visit our website to organise an obligation-free consultation.