Investing in buy-to-let property offers the potential for steady rental income and long-term capital appreciation. However, fluctuating interest rates, unpredictable tenant behaviour, and erratic maintenance costs can present significant challenges. In this article, we explore a number of risk factors that property investors should consider before buying a rental property.
Unexpected expenses
As much as you may try to budget for the associated expenditure that comes hand-in-hand with property ownership, it is difficult to foresee every possible expense. As a rule of thumb, it is wise to budget, on average, 1% of the property value per annum to cover the costs of maintenance and upkeep, although this is only a guide. Insurance excesses, damage and breakages not covered by insurance, thatch repairs, faulty irrigation systems, general wear and tear, electrical compliance and maintenance all cost money, and you need to ensure that your budget accounts for these potential expenses so that your profits are not unduly eroded.
Non-liquid assets
Bu hikaye The Citizen dergisinin October 15, 2024 sayısından alınmıştır.
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Bu hikaye The Citizen dergisinin October 15, 2024 sayısından alınmıştır.
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