In 2016, the average gross yield for rental investors was 9.4%, which is slightly down from previous years but still significant.įor some context, the average annual return on the Dow Jonesover the last 10 years has been 4.8%. ![]() ![]() You’re taking a bigger gamble with an investment property.īut with a bigger gamble also comes the opportunity for a bigger reward, and this is especially true for investment properties. Sure, the stock market may only be pulling in 4% to 5% annually, but you can count on that with some level of confidence. There’s usually more risk involved with owning a rental property than investing in the stock market.Īfter all, if you managed to get stuck with bad tenants who don’t pay rent on time, your returns aren’t just reduced – they’re nonexistent. Not only do you have to consider the mortgage and the operating costs, but you also have to think about the tenants, who can either make or break your investment. ![]() Buying a rental property isn’t for the faint of heart.
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