Getting started with property investment: a practical guide
Choose on location, cash flow, risk and lettability rather than on yield alone.
12 min read
First define your goal: monthly cash flow, building wealth, capital growth or a combination. Your goal determines which type of property and which financing are the right fit.
Analyse local rental demand, the target tenant group, vacancy and planned developments. A property with a high theoretical yield is less attractive if rental demand is uncertain.
Include purchase costs, renovation, taxes, insurance, maintenance, management and vacancy in your calculation. Use conservative assumptions for rent and occupancy.
Check regulations, permits and the quality of the property. Student rooms, short-term lets and splitting a property into units often come with extra conditions.
Build up a buffer for unexpected costs. An investment stays healthy when you can also absorb a period without a tenant or a major repair.
