#4 – Increase your income
The next strategy is the Earn, Baby, Earn.
This is where you explore ways to increase your income. Here are three ways to do this:
– Review your rent
Last week, another investor I work with (Ed) increased the rent on one of his rentals by $55 a week. His property has a relatively small $300k mortgage.
So that rent increase would pay for a 1% rise in interest rates.
– Negotiate a pay rise
There is an acute labour shortage in New Zealand. A net 58% of employers say it is hard to find skilled workers. Now is the time to ask for a pay rise.
If you’re on $100k and negotiate a $10k salary increase, that’s $120 per week more in your bank account – after tax.
– Charge board
If you have older children living with you, it could be time to start charging them board or get a flatmate into your spare room.
If you want to apply these tactics to your portfolio, now is the time to talk to your financial adviser or mortgage broker.
If you’re working with us here at Opes, reach out to your property partner to review your property investment cashflow.
Or speak to your mortgage adviser to see which of these will work for you.
There are 3 other strategies you can also try. Learn what they are in this podcast episode and our article.