First Steps

People buy investment property for numerous reasons and these have a bearing on what property is right for them. Is this going to be a long term investment? If so then you need to look closely at the long-term sustainability of the neighborhood and town. Is this going to be your only investment, or do you intend to build a portfolio? This may well affect what you buy and how you finance. It may also affect the vehicle you use for ownership. Are you looking for a shorter-term investment to provide money for your children? This may mean that you look for a property in an area that can provide large short term growth but maybe not long term sustainability.

You may be fortunate enough to be able to pay for the property outright. This may well work for you but it is worth investigating the benefits of financing part of the cost. As I will explain later, this can provide you with a better percentage return overall.

As a landlord you can opt to do as much or as little as you want. It is important though that you understand that being a landlord does entail a certain amount of work. You can limit this by ensuring that the property is in good condition to start with and by employing an agent to handle the day to day running of the property.