Considering the purchase of an investment property? Here’s the lowdown on what you need to know:
Property investment is a relatively safe way to grow wealth for your future. Regular rental income, long term capital growth and tax benefits are some of the great advantages of property over other types of investments such as stocks, bonds or cash.
Hidden costs can throw out your expected profit if you aren’t fully educated and honest at the outset of your purchase. Have a buffer saved that is equal to around three months’ mortgage repayments to help cushion the blow from any unforeseen circumstances.
Bad tenants are the bane of the landlord. Ensure your background checks and references are thoroughly reviewed during the application process. This can minimise the chance of your investment falling victim to considerable damage and, ultimately, loss of income.