Are you going to make money?
When investing in property you must have a clear aim of what you want to achieve. With a rental property there are potentially two types of profit involved, neither of which is guaranteed.
A. Long term - capital appreciation
This is the potential to increase the market price of an investment property. To make an informed decision you’ll need to gain a better understanding of how property stock has performed.
B. Short term - rental income
The amount of money you can make from rental income depends on the running costs such as mortgage payments, refurbishment costs and any vacant time when the property is not let. You can reduce expenses by buying a low maintenance property.