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developers that rental income will cover their mortgages
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Absolutely, dont rely on long term rental income to pay your mortgage if you have a mortgage of over 50%. Many developers will offer what seems to be deals that are too good to be true. Take the time and sit down to discuss the pros and cons of any such offer. Investigate cash discounts etc. We can negotiate these with you.
If a deal looks too good to be true, it is. So steer clear.
Some developers offer a uaranteed rental income to you for a period of time, do the maths to see if its worthwhile. Although there are properties sitting empty the rntal income on those being rented remains stable. It has to be worked at to be rented. It wont suddenly rent itself, make sure your rental agent pushes your property.
Holiday rentals can give a higher yield if you buy the right type in the right place and market it properly. But again it has to be marketed, it doesnt just turn into money in your hands. We rent some 1 bedrooms on a nice small complex, the rental yield net of costs has been 8%, but we strive to get them rented out, for ourselves and the other owners.
But with holiday rentals you have to ensure you have the correct insurance, and the maintenance/management team are in place, and also be willing to take the rental risk!