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This sounds like the kind of high risk gamble that relies on prices continuously going up to work out. It might work out for some and hit it big, or the market
by angarg12 4y ago
This sounds like the kind of high risk gamble that relies on prices continuously going up to work out. It might work out for some and hit it big, or the market can go belly up and leave you in ruin.
I'm also a bit weary of having to manage properties in far flung locations. I rather use a property manager, who would eat into the profits.
- tchaffee 4y agoIt's not high risk. It does not depend on prices going up. It depends on renters paying most or all of your mortgage. It just runs itself if you get good renters. That's where you put all the time and effort upfront. Yes it has some risk. All investments do. I answered the question about how you get on the property ladder if you can't afford local prices. There might be other ways too.
- tchaffee 4y ago> It might work out for some and hit it big, or the market can go belly up and leave you in ruin No different from living in a house you buy. Except what I recommended is a little safer. If you lose your local job because the local economy collapses, you're now stuck with a house you cannot sell, cannot rent, and that ties you to the area. Ouch! With a rental far away, if that economy collapses it's already a small mortgage so no big deal. If your local economy collapses, you can move out of your local expensive rental and look for work elsewhere. Or even move into the cheap rental investment you just bought if that economy is doing well. Buying far away spreads your risk and is safer than buying to live in near your work.