Is rental property a good investment?
Demand for rental property remains high – especially in areas like Auckland where there are serious housing shortages.
Here are some benefits of becoming a property owner and entering the rental market.
1 Your property will appreciate in value
Investing in property is unique because you can make an investment without using all your own money – the rest you can borrow from a lender. Even if you invest using significantly more debt than equity, the value of the property increases based on the entire investment. Leveraging your money in this way can result in significant profit.
2 You will receive rental income each month
With tenants paying you a monthly rental income, any money left over after expenses is money in your pocket. The biggest expense on the rental property is likely to be your monthly mortgage repayment, but on top of that there are also maintenance and repair costs, agency fees, and landlord insurance to think about. It is important to consider these when working out your rental yield.
When you invest in a rental property, you’re the property owner and you make the decisions. You decide on the property to invest, which tenants to rent to, how much to charge in rent, and how to manage your rental property. By comparison, when you invest in a fund or stocks you can choose which one to invest in but you someone else is usually in control of managing and controlling your money.
Do your research before buying the property and protect your property.
If you need any assistance, we Japan Homes Group will support you accordingly with your needs.
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