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Managing my money
Managing my money

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6.2.6 Spotting the risks

The risks of letting out an investment property include:

  • property prices falling – something that can and does happen when economic activity is weak
  • the landlord being unable to find tenants for the rental property for a period of time
  • higher than anticipated costs on the property (for instance, on maintenance or renovation).

These risks reinforce the need for careful calculations and expert advice.

Trends in real house price
Figure 7 Trends in real house price