6 Ways to Stay Afloat and Profit from Your Residential Property Investment - Property Inc

6 Ways to Stay Afloat and Profit from Your Residential Property Investment

If you’re a residential property investor or homeowner with a mortgage, the current economic landscape might have you feeling a bit uneasy. Interest rate hikes and inflation can make it challenging to manage your property investment or mortgage payments.

I’ve got some tips to help you stay out of trouble and potentially profit from the situation!

Tip #1: Tackle High-Interest Debt

First, prioritise paying down high-interest debt, such as credit card balances. Consider switching to a new credit card with an interest-free balance transfer offer to save on interest payments while you pay off the debt. Be sure to research and compare cards to find the best offer for your needs.

Tip #2: Rent Out a Room

If selling your property isn’t ideal, consider renting out a room to generate extra income. Contact local schools, hospitals, government departments, banks, and emergency service departments to find potential tenants. These professionals often require short-term accommodation and have undergone background checks, ensuring a safe environment.

Tip #3: Negotiate Your Interest Rates

While refinancing is an option, you can also negotiate your interest rates directly with your bank. Compare your current rates with those offered by other banks and come prepared with facts to support your request. Asking for better rates can save you thousands of dollars each year.

Tip #4: Convert Space into a Granny Flat

Transform an unused area of your home (like a garage) into a granny flat. This cost-effective solution can generate significant rental income from workers, young professionals, or students. Make sure to check local regulations and ensure the space meets safety standards.

Tip #5: Move and Rent Out Your Property

Consider relocating to a more affordable area and renting out your current property. Research local rental demand and potential returns before making the move. Executive rentals can yield excellent returns and are worth exploring.

Bonus Tip: Sell and Make Money

If you’re open to selling your property, research local selling prices and target buyers. Spruce up your property, stage it effectively, and invest in quality photography to attract potential buyers. Select an experienced agent with a successful track record in your area. Be prepared and informed about your next move to ensure a smooth transition.

Each of these tips offers potential relief from the financial stress of property investment or mortgage payments. Explore your options, research thoroughly, and execute your chosen strategy without the pressure of an immediate deadline.

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