People willing to spend their money in real estate business to make more money. But they often do some mistakes while calculating their profits margins which later leads to disappointments. Property valuers Adelaide can guide naive and new real estate investors how to calculate the cost of owning the real estate property. Whether an investor is planning to flip-n-flop or buy n hold the property cost of keeping and maintaining an investment property is there which should be excluded from profits thus an investor get to know the actual profit he made through a deal in real estate. Otherwise leads to loss.
Investing money in real estate is a strategic task that should be done carefully otherwise you would never be able to make desired profits.
Here we are discussing various cost incurred due to owning a real estate property in Adelaide –
Property Maintenance cost – Timely cleaning, painting, washing and repairing needed when you own a property. These all seems like small expenses but when you pay the bills then you will realise it as big one. Count these expenses and deduce it from your complete amount you earned after selling the property.
Mortgage – It’s pretty obvious that you need a loan to buy an investment property and which includes mortgage monthly repayments. Whether you receive your rental income or not you have to pay monthly payments. This also counts under a big expense of owning an investment property.
Property management fees – It’s quite difficult to manage the property alone. To find, deal and retain the prospects and tenants is tough task. So to get it done, most investors hire property managers who charge their fees according to location, current market property rates and condition.
Marketing fees – Whether you are want to keep your property on rent or on sell you need to advertise and marketize your property to grab the attention of your prospective tenants and buyers. Never forget the include these expenditures.
Insurance amount – You can’t underestimate or ignore the importance of having insurance. It’s good to be prepared for un-welcomed and unwanted circumstances. Casualties never gives you alerts so better to be prepared and have property insurance. But it too comes under the cost of holding a property.
Society maintenance fees or strata fees – If you owns a townhouses, apartment or flat you were asked to pay society or strata fees which includes maintenance of property compound or complex. These includes the maintenance of amenities in the building like swimming pool, gardens, lifts, gym, club etc. This fees is also paid by owner while holding the property.
As a real estate property investor, you must add all of these additional costs of owning an investment property into your budget before buying it. This helps you to make a realistic estimate about the expected returns and ensure positive cash flow.
For right guidance and advice hire property valuers Adelaide services. They evaluate the right property value. Feel free to contact us.