Exactly.
If someone gets a investment property, it is a risk.
Average house price, in brissy now, is around 800k.
First, you need to have saved 200k cash…or own another property the bank can leverage ( putting it at risk).
Get the big loan $650k (property price, plus stamp duty…more govt fees), which requires regular repayments.
If you think no-one cares if you live or die, try missing a mortgage payment, and watch how quickly the bank finds you, and gets down your throat.
you really need to find good , long term tennants, who pay on time and look after the place. REALLY look after them, as they keep the whole process running smoothly.
My property manager has absolute horror stories of tennants spiraling down…losing a job…drug use…domestic violence…not paying rent…eviction process ( takes time, theyre not paying, bank is after you)…eviction notice ( now they are really pissed…damage the place…she had one tennant pour diesel on the floors of a 2 story townhouse…completely ruined the carpet and downstairs ceiling).
When they finally were out, they were left with a horrendous repair bill, it took a long time to get repaired, with no rental income.
Yes, you have insurance, but premiums then go up, and if it happens more than once, they probably dont wanna insure you again.
So, yes there are big risks, for essentially forced saving and moderate income stream returns.
Glad to hear your option 3 didn’t see you caught out. In a normal rental market, other places are available, and if the have to tell you to leave, honesty and lots of advance notice is the key…
