Buying a Rental Property
Buying rental property can be an excellent way to generate a secondary income, add to your investment portfolio and plan for the future.
Here are some important considerations when looking for a rental property to invest in.
There is no use buying a fully featured property in an area where there is absolutely no tenant demand.
Location will play a big part in your decision of which rental property to buy. This includes the proximity to employment opportunities, educational institutions and public transport infrastructure.
The rental yield is the annual rent of a property as a percentage of the price you pay for it.
This will be an important consideration, and the rental yields of properties in the same area as your prospect can be informative too.
Will your rental property require a lot of work and renovation, and then constant repairs as time goes on?
Hopefully not! A good property inspection should turn up any issues with the quality of the design or build of the dwelling.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.