Tips for Targeting an Investment Property:
- Research the local housing market.
- Look at market trends over the past 5-10 years.
- High rental yields indicate strong demand.
- Areas close to transport links, universities and hospitals are likely to increase in value.
- Buy below market value in a rising market.
- Ensure sufficient cash flow from rent to carry expenses.
- Leverage gains through mortgage debt.
- Manage your investment well.
- Research before buying to minimize risk and optimize returns.
Overview of Investment Property Rules:
2% Rule:
What is the 2% rule for investment property?
- Target an investment property.
- Research the local housing market.
- Look at price trends over 5-10 years.
- Where demand exceeds supply, prices rise.
- High rental returns mean strong demand.
- Growth areas near transport, universities and hospitals will likely increase in value.
- Buy below market value where prices are rising.
- Ensure rent covers expenses.
- Use mortgage debt to leverage gains.
- Manage your investment to minimize risk and optimize returns.
1% Rule:
What is the 1% rule for investment property?
- Target an investment property.
- Research the local housing market.
- Look at price trends over the past 5-10 years.
- Buy below market value where prices rise.
- Ensure rent covers expenses.
- Use mortgage debt to leverage gains.
- Manage your investment to minimize risk and optimize returns.