The Australian Dream is every bit as much about becoming a property investor these days as it is owning your own home. And one often leads to the other, whether you build to live first and are now looking to add an investment property to the mix, or you’re considering rentvesting
– building an investment property first while you rent elsewhere.
There are a lot of things to consider when becoming a first-time landlord. It’s a big step, but don’t worry. We have plenty of advice to keep you right.
Renting property is a business
The first thing to wrap your head around is that becoming a landlord is like starting a small business. Cash flow and profit margins matter.
Don’t forget to factor in outgoing costs likes property maintenance, insurance, body corporate and council rates that will all eat into your profits. Would you be able to cover mortgage repayments during periods without tenants? Will you be negative gearing or positive gearing your investment?