Selling Houses Australia

How to plan costs for an investment property

It's important to consider all costs when thinking about investing in property.

An investment property can be a solid place to put your savings. We all know about the financial benefits such as rental returns and capital growth, but what about the costs?

All agents charge a fee to manage an investment property, so if you’re not going to manage it yourself, keep the agent’s costs in mind.

In general, an agency will charge marketing fees to advertise your property, as well as a monthly retainer for managing the relationship with the tenants.

There is also a potential loss if there is a gap between tenants. You could end up covering all the mortgage costs yourself for however many days, weeks or months the property remains vacant.

Other costs on your check list should include a buffer for damage - or insurance against damage.

Any damage caused directly by your tenants should be covered by the tenants. However, repairs from general wear and tear are usually the homeowners’ responsibility.

Owning an investment property can be financially very appealing, but being aware of all the costs, as well as the benifits, will make you a much better prepared buyer.

Like this artice? Subscribe to our newsletter to get more articles like this delivered striaght to your inbox.

By registering you agree to our Terms of Use, Privacy Policy and Privacy Notice


Sign Out

Join the Conversation

Please note, LifeStyle cannot respond to all comments posted in our comments feed. If you have a comment or query you would like LifeStyle to respond to, please use our feedback form.