6 Property Investment Risks You Should Know

Planning to invest in property? New investors should be made aware of the risks that investing in property entails. Here are the 6 property investment risks you should know.

It takes time to transact property. Property is a long term investment. In cases where you need to sell your investment, it will take longer to cash out than other investment types such as shares.

It may be costly to get in and out of property. Entry and exit costs should be part of your plan to minimize risk as this can cost you thousands of dollars.

Vacancy stops your cash flow. In cases where you lose tenants, vacancy can stop your cash flow.

Interest Rates. Your repayments can increase in cases of an interest rate hike.

Right or Wrong. Purchasing the right property means that you do your research, understand the market and the potential of your investment. Purchasing property at the wrong place and time can mean slow to no cash flow.

Mortgage repayments. Outside factors should be considered when paying off your mortgage, such as expenses and job security. In case you lose your job, you can lose your investment if you are unable to pay it off.

Property is an ideal investment – but understanding and avoiding the risks surrounding it be a huge deal to your financial health and long term goals.

Read more about this on the Your Investment Property website.