Property Renting - Traditionally is modelled by Landlord owners renting properties.
They buy properties as an asset investment, rent them out and gain capital drowth when they go up in value.
Some investors have cashflow positive properties, ehere the rental income is greater than the loan and
running expenses, others are cashflow negative, requiring extra finanvial input from the owner to meet
expenses. Cashflow negative properties may reduce the taxable income of the owner from other sources.
They would never go broke BUT some have in recent years.
Cashflow negative properties can lead to a situation where the investor is asset rich and
cashflow poor.
What is their RISK! The risk is that their investment could drop in value
due to damage from the tennants or default in rental payments.
Renovating
Buy fixer uppers in need of cosmetic facelift which will increase in value by more than the funds you
spend renovating. Houses in need of fresh paint inside and out, with outdated bathrooms and kitchens,
in need of carport or outdoor living areas are all prime candidates for the savy investor. Once
renovated the property can be sold, or rented out and the equity accessed for further investing.
Rent to Buy
Buy to Rent/Sell The landlord who wants to minimise the risk of tennants who
damage their property, and understand that potential owners are more likely to look after
and even improve the property. They also understand that there are people who are not eligible
for home loans even though they are able to service the loan and likely to do so.
They are happy to assist such people to their dream of home ownership by collecting rent plus
payments towards the cost of the home.WARNING: As with anything in life, there are risks for the uneducated and savy investor alike,
the information above is general information and not investment advise. You should seek
out qualified advisors, and educate yourself thoroughly before Investing.
We take no responsibility for any losses or damage incurred if you act on the information on this
site alone.
