Capital gains and rental yield—they’re the two best tools for determining whether a property is a worthwhile investment. If you’ve already got one or two investment properties, you’re probably alre//'''''''''ady familiar with these number-crunching accessories. But the question often debated is, which is better for building a property portfolio?
A large part of turning your rental property into a profitable investments comes down to how much you charge for rent. At the surface it’s a simple equation, more rent means less (or no) mortgage to cover, which means more in your bank account, but in reality, it’s a little more complex.
There’s no skirting around it. Self-managing a rental property is stressful, especially if you’re trying to fit it around another job. In the UK, a study found that 25 per cent of landlords found self-managing more stressful than they first anticipated. While a little stress isn’t a bad thing, too much can have an impact on your health, your relationships and your investment.
Don’t get caught out with the changes to Residential Tenancies Act. Whether you’re thinking about investing in a rental, are preparing a property for tenants, or are already a landlord, check you’ve got the right things in place. After all, a healthy home encourages longer tenancy—which improves your return.