Calculate the return on capital (assuming debt free) on your rental property
While you may want to invest in property for the capital gain the rental yield is also an important consideration. Unless you can expect strong capital growth you should not consider rental properties a reasonable investment unless the rental yield is above 7% before tax. Refer also Rental Property as an investment. Checklist for buying and selling a house, click here to download
There are other ways to go into leverage investments other than rental property. |