Deckchair Analysis of your rental property investments

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Deckchair analysis of your rental property investments

Summer holidays can be an ideal time to think about how to improve your property investment returns and to review their suitability to your current personal circumstances.

Here’s a list of fundamentals that could benefit from a laidback summertime review.

Maintenance

Draw up a checklist of maintenance and improvements.

Summer lawn and garden maintenance; check for damage to decks, fences and general property maintenance such as blocked spouting and roof leaks. Inside, check for plumbing leaks and rotting window frames and sills.

Ask, will the property stand up to the scrutiny of the much anticipated, mandatory, Warrant of Fitness Scheme requirements for private rentals, which appear to be a matter of when, not if.

Review heating and insulation and consider replacing unattractive, worn and torn chattels, with new, which will attract and retain good tenants, avoiding downtime between tenancies.

Make a coffee date with your property manager to discuss and review the tenancies and current market value.

Financial Options

Have a broker review your insurance; shop around for better value insurance without sacrificing reliable, comprehensive cover.

Does the investment property still suit your current personal circumstances? Are you going overseas to live or work? Planning to retire? Have there been some financial changes that may give you more options to buy or sell?

Are you happy with the current yield? (Yield = annual rent received divided by the current market value). Alternatively, are you happy with the market trend for capital gain purposes?

Should you consider preparing the property for sale in time for the Spring/Summer real estate frenzy?

If you were to sell your property now how much tax do you have to pay on the possible depreciation recovery?

Review financing and consider a restructure of mortgages to take advantage of better interest rates and deals.

What is your LVR? (Loan-to-value Ratio – this is your loan limit divided by the current market value) Can you borrow more from your bank or should you consider an increase in your regular principal repayments to pay off the loan faster?

Are your bank loan terms as good as they could be? Should you continue to float or fix? What are the real estate market trends and can the RBNZ, political and media forecasts be relied upon?

Determine and create a schedule of when any fixed loans are due to mature.
Are there any break fees or penalties if you were to repay a fixed rate loan now? This can differ between banks.

When was the last time you had a one on one with your accountant to review your tax and debt structure?

Call us for a free one hour, no obligation consultation.

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