As the stock market and other investment avenues are steadily swooping and swooning, investors are looking for a more stable investment that is worth their time to consider. These investors are discovering the wonderment of owning rental property in the real estate market. Many will find that being a landlord is simply not the right road for them in particular, while others are able to embrace the idea and go on to become hugely successful.
How Long
Once you have taken the initial step, which is deciding that rental property is the best way for you to participate in the market, then it is time for you to really get busy. Locating an ideal rental property that fits your criteria will take time, the right connections as well as lots of research on your part.
Just as you would with any other type of investment, it is critical that you have firm idea of how long you expect to own the rental property prior to purchasing it. The longer the property is in your possession, the longer you will be required to invest your time and money into repairs, improvements and routine maintenance.
Obviously, if you plan to keep a property for twenty years or so, you will need to factor in such costs as a new roof, new appliances and even the occasional major repair. On the other hand, if you are only planning to hold on to the rental property for around five years, then major improvements should be avoided unless you are positive you can get your money back by selling the property at a much higher price. You must also consider the fact that over the course of twenty years a property is sure to gain value, whereas a property can easily decrease in value over the brief course of five years.
Property Options Australia
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Hi Sean,
I see a rental property as a pretty stable investment. You can hold onto the property for as long as you like. You can sell it in boom times or just keep it and let it become an asset in your property portfolio.
Still, I’d want a property manager to take care of the day to day issues of managing a rental property.
Good point with long term costs like reroofing. I have heard that properties in Australian cities have a habit of doubling every 6-10yrs so investing in the real estate market would make a great deal of sense.