Property Investment should be a fruitful and meaningful investment that should go a long way toward securing your financial security and estimating a realistic budget to meet the cost of property investment will make sure you have a sound performing investment property.
Over the years I have noticed seven costs of property investment that investors regularly make, here they are:
1. Accounting fees, which increase when you own an investment property.
2. Strata levies, which might be set at a particular rate when you buy into a new development, but “a few years later levies can sky rocket because the building is no longer covered by warranties”. This is particularly the case in apartment complexes and their property investment costs.
3. If you invest in a property with facilities like gyms, pools, saunas and landscaped gardens, you need to expect your levies to go up over time as these bring a large rental property cost.
4. You need to have a yearly pest inspection or treatment, particularly in older properties.
5. Land tax (a state tax) doesn’t apply to every investor but don’t get caught out-search online for your state laws to see if it applies to you.
6. In addition to property management fees, don’t forget advertising costs and re – letting fees. (Also ask your property manager about any other property investment costs you’ll be charged).
7. Periods of vacancy can bring a large rental property cost.
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