Property investment may appeal to people seeking rental income and potential long-term growth. It is not suitable for everyone. Consider these four areas before deciding whether it fits your circumstances.

1. Income and costs

Rental income is not the same as profit. Allow for mortgage payments, insurance, rates and maintenance. Income may not cover all expenses, and an increase in property value is not guaranteed.

2. Decisions and responsibilities

Owners make decisions about their property, but cannot control investment returns. Finding tenants, managing the tenancy and arranging maintenance take time. A property manager can handle some tasks for a fee.

3. A long-term commitment

Property can take time to sell and selling involves costs. Its value can fall. Borrowing adds risk: higher interest rates can affect cash flow, and sale proceeds may not cover the outstanding loan.

4. Preparation before purchase

Understand the property, your budget and the lender’s requirements before committing. Seek independent financial, legal and tax advice appropriate to your circumstances.

Read Sorted’s property investment guide for an overview of potential returns, risks and responsibilities.

For information about a particular Williams Corporation home, talk to one of our Client Consultants.