Investors know that real estate is a generally a long term investment which brings steady appreciation in value and also income in the form of rentals. In fact returns on properties have been only slightly less than what the stock market has averaged - around 9 % as against 13 % for the latter, over the last several decades.
Most analysts believe this kind of appreciation will continue well into the future as long as human population keeps increasing - which also means there may be concerns regarding this kind of investment in countries where the population is aging fast and in some cases, declining. Be that as it may, most people who can afford it invest in property - rental or otherwise to provide income in the later period of their lives, especially during retirement.
To do this in a planned manner, it is important to consider the income potential of a piece of property before actually purchasing it. For this the investor has to be comfortable with the financing aspects of such a transaction.
Additionally, it is important to get all the information you can from Nelson property management experts, consultants, brokers, ordinary people residing in the neighborhood, legal fraternity and accountants, which will help the investor reach a decision to go ahead with a transaction or not. Investing in rental properties should not be a problem, provided the investor is aware of all the pros and cons to it. The costs and expenses in maintaining such a structure have also to be kept in mind before closing the deal on any rental property.
|