It sounds like the perfect match – you want to buy a residential investment property and the house next door has come up for sale.
You tell yourself it will be great: you’ll be able to keep an eye on it and make sure it’s looked after just the way you like it…
But stop right there!
Let me assure you that buying the house next door may be the worst investment decision you could make.
Not only is it a bad idea from the point of view of being able to see a tenant’s every move, it’s not always the most sound financial decision.
All your financial eggs are now placed squarely in one basket – or street, as it may be – when you should be looking at diversifying with your investments.
The decision to invest has to come from a solid financial basis, rather than a property owner’s convenience.
It’s about doing the numbers and finding a piece of real estate that’s set to make you solid and consistent financial gains, whether it’s through capital growth or yield.
Until next time,
From the desk of Christine.