There are many people out there who are tired of not having enough control over their superannuation funds. If you happen to be one of those people, the easiest solution for you would to be open a SMSF, as that would give you all the freedom that you want in your investments. Not only will you have the freedom to choose where to invest, but you will also be able to decide the amount you invest, and just in case you lack funds, you can also take a loan. However, there are a few things that you will need to know about investing in houses before you decide to invest your self-managed super funds on it.
Investing in houses
There are many options when investing in real estate, which is exactly what makes it so popular. However, it is a lot more complicated than buying and investing in shares. The basics are well-known by everybody. All you have to do is to buy a property and rent it out to someone. You are then responsible for the maintenance of the property as well as the mortgage. Although the landlord can charge the tenant extra to generate a profit, many landlords decide to be patient until the mortgage is paid off, after which, the landlord can easily make a profit.
As easy as that may sound, things become much more complicated than that. The example above is that of an ideal situation, where a fine line has been drawn between the investments and the profit. However, you can easily find yourself in a tight situation. You might not even find a tenant, and when you do, you never know, that tenant might destroy your property; and that can easily leave a dent in your wallet. Visit http://www.investopedia.com/articles/pf/06/realestateinvest.asp if you want to know more about investing in real estate.
Increasing the value of your property
Before getting to the issue of dealing with your tenant, you first need to find a tenant. And in order to do that, you will need to ensure that your property looks attractive. This includes looking after both the interior and the exterior of the house. Although most people worry about the interior of the house more than the exterior, one needs to ensure that the exterior of the house is just as attractive, as a badly kept yard can put off many tenants.
You need to ensure that the exterior is well kept and clean, as that will enhance the overall look of your property. Scheduling a regular outdoor maintenance will take care of it. A little investment is all that’s needed, as that will be enough to appreciate the value of your property. Additionally, check to see if the paint job on the walls is alright, as that could be an important factor in renting the property too. If necessary, consider remodeling the entire yard/lawn and adding outdoor furniture to it. Believe it or not, that could really make a difference as well.