If you have not already taken the time to establish your investment property annual budget now is the time!
An investment property is like a car – you will need to spend money on upkeep and maintenance.
Without a budget in place you may be putting yourself through unnecessary financial stress should the carpets, curtains or hot water system need replacing.
Take control of your finances now and set aside a small amount each week to cover unexpected and planned renovation costs.
Plan to renovate or upgrade the property over a period of time. The below is an example only and may vary depending on the number of tenancy turnovers (wear & tear), type of tenants residing in the property and current condition or age of the property.
Plan to replace or upkeep the following list every 5-8 years:
Carpets, Curtains, Painting Internally & Externally, Replace/repair gutters downpipes, fences, balcony areas and upgrade appliances (hot water system, oven, stove, dryer, dishwasher etc).
Allocate a cost for the replacement value and set aside that amount each week
BUDGET PER ANNUM
$ External Maintenance
$ Unexpected/ Miscellaneous Costs
TOTAL / 52 weeks = WEEKLY BUDGET
It will be a lot easier to set aside an additional $40 per week than having to pay an unexpected $1000 for the replacement of a hot water system.