In a recent article by the Financial Review, author Duncan Hughes, argues Australia is becoming a nation of landlords since the real estate prices are sky-rocketing in recent years.
The reason for the increase in the number of landlords is because many cannot afford to be owners-occupiers and in turn become buyers-landlords. These very same first-time buyers who rent their properties, still go on to live at home with their parents, or have communal arrangements with their friends at least until they get a return on their investment. This allows them to both generate and save money for the next investment. Indeed investing in property has become a very profitable way to make money, allowing owners to eventually quit their 9 to 5 job and to be introduced on the property ladder full-time. Rental income from the investment property is expected to cover all costs and any capital growth is then leveraged to buy the next property. As a result, a large number of investors own more than one property, in fact, more than 270 000 Australians own more than five properties.
Being a landlord though, is a very responsible thing, especially if you are looking forward to purchase more properties in the long run. According to Christopher Foster-Ramsay it is important to understand “what you are getting into”.
On the property ladder you have to constantly be on the lookout for good deals and valuable properties all the while you are making savvy financial decisions. Buying and leasing a property might seem like a fast way to get rich, but you always need to thing about potential risks, mortgages and loans. You need to carefully calculate your loan-to-income ratio and include in it the constant cleaning and maintenance costs of the property and the responsibility you have towards your tenants.
If you are a first-time landlord and need help with those, we at Move Out Mates are experienced enough to take care of your property whether you want to achieve its full market potential, or you want to clean it at the end of each lease. Simply give us a call at 02 9098 1740 and we will navigate you through our rates and services and offer you a deal that works best for you.
Image Credit: Flickr Creative Commons