Why a rental return is so important. It’s without doubt. Successful property investors rely on the income through rent as much as the anticipated capital growth. However too many investors don’t put enough thought into who is the best person to occupy their property or if they receive a consistent level of rent.
In most cases property investors’ primary objectives are to receive capital growth. It is one of the most rewarding assets to do so. However capital growth is not consistent and a property will not outperform the market at each interval. Diversification is one ways to reduce risk and increase a consistent return. Rental income is another. It’s probably the very reason why property investment is seen as a lower risk to most other investments.
If you have your investment occupied by a renter, income is charged weekly and received monthly. There isn’t another investment asset that can provide such a regular income. Regardless of the property value you’ll receive a rental return. If the property decreases in value, you’ll still generate a rental return. In comparison to shares, a public listed company may reduce their dividends (income) if the business hasn’t performed well or the share price has decreased in value. Rental income is not performance based which makes property investment the best investment.
It’s important to note, a rental return is not the same for each property. It varies based on property type, location and supply/demand.
It’s also important to acknowledge that different property types and/or location will also play a large factor if you plan to adopt a particular strategy. Before investing into a property, we recommend seeking professional property advice. At Crest Property Investments we specialise in sourcing brand new and off the plan properties for buyers. We also do not charge fees to buyers! If you’d like to learn more, please feel free to contact us. We welcome the opportunity to help you make the best property decision.
You can also learn more tips around property investment on our YouTube channel or Market Insights section on the website.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
March 2022
