Tips And Investment Gems
Hamish Anderson shares four of his favourite investment tips that new and older investors may never have considered.
1 November 2019
I had a meeting with a client last week and she loved the couple of tips or gems I gave her regarding property investing, so I thought I might share a few in this article. No individual topic, just four property investment gems for different property investment strategies.
Merry Christmas Tenants
Many tenants have resentments against landlords and think they are all heartless and don’t really care, so sometimes the smallest of things can go a long way. Besides, anything you can do to encourage a tenant to take better care of your property will be worth it. So, for Christmas, why don’t you give them a gift? You don’t have to spend a heap of money - a box of biscuits, chocolates, champagne, beer, or if you’re feeling generous - a free week’s rent. Whatever will put a smile on the tenant’s face. Loyal tenants are great tenants.
Finding A Great Deal
How’s this for something a little different? This is a strategy that very few people do. A good auctioneer might call five to 10 auctions over a weekend, or during a week. So, on a Friday, they will have a good idea of what auctions they are calling and a good idea of what ones might have many or maybe no bidders attending the auctions. Why not ring an auctioneer up and say, ‘Hey are there any auctions this weekend with no or not many buyers attending?’
‘Some people attending an auction forget who they are competing against - they sit at the front or middle of the room looking at the auctioneer, but the auctioneer isn’t who you are competing against!’
Why Not Ask The Question?
If your strategy is to buy a bargain, you might just get one - you might not as well, but you have to be there to have a chance. I have attended many auctions over the years hoping there weren’t many buyers going to turn up, some have had 10 bidders or more and sold several thousands of dollars more than I would had paid, others I have been the only bidder and brought some outstanding deals. More buyers equals a better price, no buyers equals a potential bargain.
Bidding At An Auction
Now I could talk about many strategies to do with auctions, but here is something not to be overlooked. Some people attending an auction forget who they are competing against. They sit at the front or middle of the room looking at the auctioneer. Well, the auctioneer isn’t who you are competing against! Yes, he is representing the vendor, but the other bidders in the room are your opposition who you are competing against. My strategy is, stand at the left or right of the front of the room. You can stand there looking at all the bidders and the auctioneer without hardly moving. You can see the stress or confidence that other bidders may have, and you can see what the auctioneer is doing. It puts you in a good position, especially if you are going to be a serious bidder. Take control at an auction.
Trading Or Renovating Property
If you are renovating and/or trading a property, you want to maximise all that you can. Every dollar saved or gained at the end is important. You may be good but you can’t be the expert in all fields so how about trying this?
Do this during your due diligence or before you go to offer even better. Get your valuer, real estate agent, property manager and your builder together with you and walk around the property. This is gold as the valuer will say what will add the most value to it, the property manager will do the same about the rent. They can discuss with the builder how much these ideas may cost and talk amongst themselves. A good real estate agent will make suggestions on what will assist in selling it.