|
Passive income is when you earn money without actively working for it. It is probably the most desirable kind of income because you earn money with little or no effort. Anybody who has enough passive income can retire anytime of their life without any decrease in quality of life. Furthermore, they never feel as though their personal wealth is reducing. One of the most popular ways to grow passive income is through property investing. Contrary to popular opinion, property investing need not be the domain of the rich. It's more important to be educated! The four most important considerations for your investment property are: property location property yield your ability to pay off your loan your property manager Location - it's critical that you thoroughly review the area you wish to buy in prior to purchasing your property. Many locations that promise high returns aren't as secure as you might like (if they're one-industry towns or niche properties you might need to do some more research). Look for factors like future developments, a wide base of different industries and a thriving retail community. Yield - it's always worth spending time ensuring that your property will earn enough for you. Don't rely on the figures from the real estate agent (remember, they're trying to sell you the property - do you think they'll be forthcoming with bad news?). Do your own number-crunching and always log on to property websites to look at the rental market for similar properties in the same area. Your ability to pay off your loan - calculating your figures on current, or (worse still) optimistic, interest rates could put you in a very uncomfortable position if interest rates increase. Make sure you are able to afford your home loan, with some cash to spare. A good rule of thumb is to budget on at least a 2% increase in interest rates. Your property manager - never underestimate the advantages that having a great property manager can bring you. Many managers know more about the area than you do, and can provide you with tips on how to increase the rent of your property, or how to get better tenants. They may even give you the inside word on when a great investment property is up for sale. Investing in property opens out a great chance to have reliable passive income, as long as you are careful in your choices. Organise your finances properly and always know how your properties are performing. By following these simple rules, you should maximise your chances of finding an excellent investment while freeing up your time. You can read more about australian property investing and residential property investment at www.everydaypropertyinvesting.com
Related Articles -
property investing, property investment, property investment education, property podcast, real estate investing, real estate investment, real estate i,
| 
