Interest rates are high. So lots of investors ask: “Does property investment still make sense in 2024?”
One investor said: “With high interest rates and the rent we get, is it worth buying an investment property? Most of the time, we spend money from our pocket to cover the mortgage repayments.”
That is such a good question. You don’t want to buy an investment property and find it doesn’t give you a good return.
So, let’s dig into the numbers to see if it’s worth it.
How much does it cost to own a rental property? (What’s the cashflow like?)
At today’s interest rates, the rent doesn’t usually cover all your expenses.
So, you have to make up the difference by "topping up" the property out of your own pocket.
While interest rates are high, this is usually between $300 - $600 a week.
Doesn’t matter whether it’s new or existing. If you don’t have a cash deposit, Valocity estimates that over 9 in 10 investors top up their new purchases.