Neglected or maintained?
Owning a quality investment property over a number of years can do wonders for building your wealth. As capital growth and rental returns inevitably increase, the pain of owning an investment property begins to reap the desired return for landlords. The financial pain of transactions costs and establishing the investment property are behind you. Future capital gains and increasing rental returns are fruits to be enjoyed by the landlord.
Yes, an investment property can offer dazzling dividends. However, like any investment play, where there is a chance of a gain, there is also a chance of a loss. If you are a long term holder of real estate, time will usually take care of the market in your favour. The market may ebb and flow in the short term, but it will often reward the long term investor, both in increased rent and capital growth.
What is absolutely heart breaking for a landlord is when the investment property is trashed, wiping off market gains. Not only is this heart breaking, it is common. So common, that if you have not physically inspected your investment property in the past 2 years, you would be well advised to do so. [Read more…]