General advice notes on residential investments
The same fundamental rules still apply .
1. Does the investment make economic sense?. Is the return adequate?.You can no longer assume that property prices will increase.This is a long term investment and you need to examine that the term fits in with your long tern financial plans.
2. Satisfy yourself as to the rent potential for your chosen property. Don't take the selling agents advice as a guarantee. If you are buying an apartment make sure you see the Management Company accounts. Talk to existing owners in the complex. Talk to existing tenants.
3.You need to be in a position to live with rent free periods.
3. Keep a fund aside to maintain repayments up to date in the event that your property is vacant for some period of time
4. Be sure you budget for taxation obligations (see calculator)
5. Where possible it is our advice that you should supervise the letting and rent collection yourself. (For multiple investments this may not be possible).This is your property and there no better way to know your tenants than to vet them at the outset and to make regular monthly visits.
6. Be prepared to become a landlord and deal with the related tenant issues.
7. A slightly lower rent from a solid long term tenant can very often be the best option.