The Cons of Investing in Residential Property
By Stephen McClatchie
At times during the economic cycle there is pressure on rental yields especially during times of tightening rental markets. Rental yields may be as low as 2 or 3% and you may end up with a serious cashflow deficit. It may take some time (sometimes many years) for the rent to increase.
In some instances, where minimal equity is available the residential property is illiquid. This means that if you need cash fast, you cannot sell off a bedroom or two. A house or a unit may be slow to sell if the market is sluggish.
The turnover of tenants in your residential property may be higher than you desire
About Stephen McClatchie….
Stephen McClatchie is the Founder and Director of Loans Australia, and Loans USA. Having overseen the writing of more than $650 million dollars in mortgage finance over the last 14 years, Stephen is well placed to understand the needs (and frustrations) of multiple property owners and investors.
Stephen has been involved in mortgage lending since 1995 and is a specialist in mortgage structuring, strategic financing, management and mortgage selection.
Further information is available at http://www.loansaustralia.com.au/ or http://www.loansusa.com.au/
The Cons of Investing in Residential Property
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