Why Invest in Property?
Everyone with money is looking for ways to make it work for them. It is well known that the easiest way to make money is investing, but with so many investment products out there it can be hard to decide what kind of investment is right for you. Some people favour the stock market, cryptocurrencies or bonds, but in this article, we will discuss the major benefits of investing in property.
People Need a Place to Live
Everybody needs a roof over their head. Whether it’s an apartment or a house, there is constant demand for housing. Because population is on the rise, there is also an increase in the number of people with a demand for housing. This makes the housing itself a limited commodity and helps to explain why housing prices have been increasing steadily for years. Everybody wants to own their own home, so the demand for rental properties is also increasing, and with that so are rental rates. Both of these factors combined show that the price of getting a roof over your head is increasing much faster than inflation, and it is therefore a good time to own property.
Risks of Property Investments
Every investment has accompanying risk and that of course includes property investments. When you buy your first building, chances are that you are doing so with the help of a mortgage from the bank. This is your first risk, which means you may not be able to meet the repayments and will have to forfeit your investment.
Another thing to be cautious of when investing in property is the age of the building. Old houses and old apartments will often require expensive repairs to make them marketable. It is one reason to always do the due diligence of organising a series of property and infrastructure inspections and reports before you purchase a property.
Outsource Property Management
Your investment property is an asset that is capable of continuously generating dividends in the form of rental payments. Because of this ongoing cash flow, it is possible to outsource the management of your property for a small fraction of this ongoing cash flow. This is a major bonus, as it means you will no longer need to go through the process of facilitating repairs, interviewing tenants or collecting rent.
You can outsource the whole set of responsibilities that usually goes with being a property owner, and sit back on a beach somewhere counting the money that comes back to you. Additionally, if the property management company is decent they will offer a rental income guarantee so that you will continue to get paid even if the tenant is experiencing financial difficulty.
Hire Walker Weir to Manage Your Investment Property
Walker Weir are experts at managing investment properties in Auckland. It is our business to protect the value of your investment and ensure it brings you solid and consistent returns. We gladly oversee the entire process of renting, from tenant selection to facilitating repairs and collecting rent. We even offer a rental income guarantee so that tenant cash flow problems don’t become your problems. Call us today on 022 657 9432 or contact us online.August 13th, 2018