Are you looking for an adequate investment vehicle in order to support your long-term financial goals, or perhaps retirement? With the economy, and specifically the housing market at low, coupled with historically low interest rates, this could be the best time ever to buy a home! Not only that, this may be the best time ever to buy an investment property as well. The upfront monies required to buy a turn-key property are significantly lower than in years past, and while banks are acquiring the necessary capital to invest, credit is becoming increasingly more available to everyone. I’ve actually been giving consideration to renting out my current home and purchasing a new one next year as well, so this is a hot button topic for me personally. However, while this can be a great investment there are concerns that come along with it. I have to worry about keeping a constant renter within the home so I can continuously receive rental income while paying two mortgages, as well as the worry of keeping the home in good shape while someone else lives there.
If you are considering buying a new rental property, already rent one out, or renting your current resident than heed this advice. Make sure you look into rental insurance, or if in the U.K. you should look into landlord building insurance, to give yourself peace of mind. This type of insurance will give you income protection in times when you are unable to find a renter. They will also protect your home and the contents within the property in case they become damaged.