An investment property is a long-term commitment. A few honest questions at the start can save a great deal of stress later.
The questions
- What is my goal: income, growth or a balance of both?
- How would I cope if the property sat vacant for a while?
- Which costs will recur every year?
- How long can I comfortably hold it?
- Who will manage it day to day?
Think beyond the purchase price
Rates, insurance, maintenance and management all sit alongside the loan repayments. A realistic yearly figure gives a truer picture than the headline price.
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Speak with a licensed adviser about your own circumstances. General articles like this one are a starting point, not advice.
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