Six property investment assumptions that could be costing you money
Many residential property investors rely on long-held assumptions about rent, capital growth and tax, but failing to review them could reduce returns and lead to costly mistakes.
Residential property investors should regularly review their investment strategy, cash flow and tax position rather than relying on assumptions made when they first purchased the property. (Image source: BlueRingMedia/Shutterstock.com + API Magazine)
Residential investors often build their first purchase strategy around familiar assumptions.
Rents are expected to rise, property values to grow, tax deductions
to support cash flow and time in the market to do much of the work. Those assumptions can be useful at the start, but they need testing as loan costs, expenses, tax rules and property conditions change.Assumption 1: Rent will keep pace with costs
Many investors assume rental income will …
