Property investing and consistently making rental income sounds appealing. Yet there are misconceptions on both sides in terms of the pros and cons of this business opportunity. If you are looking to get started as an investor, then you might want to know these 10 myths about buying a house to let.
Starting a rental business may sound easy if you’re able to buy the property. Yet that is myth #1. It’s not easy, as you’re running a business. Yet myth #2 is that this type of business doesn’t necessarily have to be a full-time job. Worst case scenario, you can always hire a property manager, too. So while running the business isn’t a piece of cake, you don’t necessarily have to worry about giving up your job.
That means you can still earn income on the side as you grow your business. Another one of the 10 myths about buying a house to let is that it represents an investment for which you can’t really calculate your total return. First, there are going to be some uncertainties going into the investment, as there is with any other type of investment you make. Yet that doesn’t mean your return can’t be calculated.
You can calculate what you expect your return to be, just like with any investment. And you can naturally calculate your ROI after everything is in the books. Then you can work on ways to help you get a better rate of return. One thing about property investing, too, is that it is considered to be a more stable form of investing, when done correctly. You will sometimes hear otherwise, but that’s another myth.
When you look at individual real estate markets, you might see some people saying that supply and demand doesn’t always apply. Yet in general, it’s always going to apply. If there is a lot of demand for particular types of properties in a given area, rent is going to be higher. Keep that in mind as you look around for the rental properties are figure out an expected rate of return on your investments.
Another myth is that real estate investing is a get rich quick scheme. There are people who have flipped houses quickly to the tune of enormous profits. Yet most people are going to build a stable buy to let business that generates income. Don’t fall for the myths out there as you become a real estate investor and start leasing those properties.