Investment guide
Yield, location, risks and long-term management.
Property investment requires analysis of returns, costs and risks. This guide helps with initial assessment but does not replace tax or financial advice.
1. Define your investment goal
- Are you targeting monthly rental yield, long-term capital growth, or both?
- Set your time horizon (short, medium, long) and expected liquidity.
- Consider investment size and reserves for void periods or major repairs.
2. Yield analysis
Gross yield is only a starting point – include all regular and one-off costs for a realistic picture.
- Calculate gross yield: (annual rent × 12) / purchase price.
- Subtract taxes, management, insurance, maintenance, reserve fund and agency fees.
- Compare net yield with other investments and your cost of capital.
- Allow for possible void months between tenants.
3. Location and property type
- Check rental demand (students, families, transport links).
- Review planned infrastructure and demographic trends.
- Compare apartments, houses and commercial space for management effort and liquidity.
- Be cautious with remote locations you do not know well.
4. Risks and legal security
- Verify property condition, encumbrances and compliance with tenancy law.
- Use a clear lease with deadlines, deposit and maintenance obligations.
- Plan tax implications (rental income, eventual sale, depreciation).
- Consider property and liability insurance.
5. Management and exit strategy
- Decide whether you will self-manage or use a property manager.
- Review yield and costs at least yearly and adjust rent to market.
- Plan exit (sale, refinancing) according to tax and market conditions.
- Diversify across regions and property types where it makes sense.