What Can You Do About The Rising Cost of Investing In Property?

It’s unavoidable – the cost of everything is on the way up. Thanks to cyclones, buy and hold properties,fires and some torrential rains and floods, the cost of fairly basic foodstuffs has risen quite dramatically. And let’s not mention the fuel prices – rising already and predicted to keep going up… with the increases in taxes, and the lower competition in the banking world, interest rates will go up and local rates and taxes are rising too.

If you currently own your own buy and hold investment property, you can guess which way your return is heading – and there are only so many costs you can realistically pass on to your tenant. Your buy and hold investment may have seemed like the best property investment idea a few months back when interest rates were low, but if the renters’ wallets are feeling the squeeze too, you may find yourself absorbing more of the costs of running your investment property than you had intended – and looking mournfully at the little, to no (or even negative) return your investment is providing for you. Indeed, instead of an extra income stream, you may find yourself facing an extra headache and another rising cost. You may start to wonder if your traditional buy and hold is really the best property investment for you.

Is there anything you can do? It can be very frustrating being at the mercy of the market and watching all your careful plans for additional income and security being eroded before your very eyes. What if you could transform your investment property returns into a gain that is truly the best property investment for you? I’m talking about over 15% ROI and regular profit coming in from your investment property each month – that’s additional income after costs, not just enough to cover your outgoings.

Think what this might mean – additional income for which you don’t need to work any harder. Money that can maintain your lifestyle even in the face of rising costs that may otherwise materially damage your standard of living. If you could secure this higher return for yourself, at lower risk than a traditional buy and hold property investment – would you?

Many investors are looking to transform their traditional buy and hold property portfolio by converting some of their rental properties to vendor finance arrangements, where the tenant becomes a purchasing tenant. The tenant becomes a new home buyer via an instalment contract and the investor sets up a rent to buy arrangement. The capital gain is locked in via the contract, and the tenant agrees to pay above market rent for the option to purchase the property at a later date – maximising the investor’s return and lowering the risks associated with the traditional buy and hold rental property investment.

Marc’s background was originally in the construction industry. He is excited by his ability today, to help property investors achieve above average returns with their property. This is a very rewarding process for him, so his mission is to help as many people as possible. Marc is very passionate about providing real solutions, ensuring you get the best possible service available, and service with a smile!
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