Risk Factors & General Disclaimers

Investing in property is best viewed as a long term investment, as house prices can go down as well as up, and a forced sale in a poor market could lead to a loss of some or all of your initial capital investment and in the worst case, negative equity i.e. the sale price is not sufficient to repay the outstanding loan.

Rental incomes can vary over time. If the market became saturated your annual rent may remain static or even fall, perhaps leaving you with insufficient monies to meet the monthly cost of any mortgage.

Mortgage costs could rise. If you do not have a fixed rate mortgage your mortgage payments could rise. Perhaps leaving you with insufficient rental revenue to meet the monthly payments and therefore requiring a top up amount from your own resources.

You may not be able to rent the property for a period, either due to market conditions or there may be a delay in gaining a new tenant when your existing tenants vacate. It takes on average 4 weeks to let a property.

It is essential that, in order to help protect against the above risks, you build up a contingency/reserve fund.

All loans are subject to status.

Your home is at risk if you fail to maintain payments on your mortgage or other loan secured upon it.