Residential Investor — increase your returns, reduce your risk

If you've invested in a strata unit then you're interested in maximising return - both on the rent and the capital value. You want the renters and potential purchasers to pay the best possible price - and in both cases the state of the common property affects their sense of lifestyle and as a result, the value.

This in turn affects your own lifestyle. So how should you make sure the building you've invested in is well maintained and how best do you fund that?  Investors need to keep their cash and lines of credit available for future investments, so a Special Levy is a bad idea. Sinking Funds are dormant cash, slow to accumulate and their returns are taxed.

Strata borrowing lets you get the improvements done immediately and because its off-balance sheet, it won't affect your credit lines and keeps your cash flow... well, flowing. You add value to the property while saving money at the same time.

Lannock recommends investors always get involved with their owners corporation. If you want to ensure the value of your asset, you need to have a say in how its managed and how its value could be increased. Be part of the solution, attend that general meeting and join the committee!