Selecting the right investment properties is fundamental to the success of your property investment success. If you choose the right property, you can be almost assured that you will enjoy good capital growth for many years, and that the property will rarely – if ever – be vacant, which will practically guarantee your property investment success.
For this reason, we have come up with a 10-point Scorecard to evaluate each potential investment property before making an investment decision. In this article we look at the break-even point in the investment, as well as the condition of the property as important variables in your property investment success.
It is certainly possible to find cash-flow positive properties ie buy-to-let properties that immediately generate sufficient rental income to not only cover all the property expenses but also produce a surplus. However, most investment properties will initially have a monthly shortfall: the amount by which the property expenses exceed the monthly rental income and which must be funded by the property investor. This monthly shortfall reduces year after year as the rental income increases until the break-even point is reached ie the point at which the rental income covers all the expenses and produces a surplus. To continue reading click here…