What are the risks of property investment?
When investing in property, the risks you face include falling house prices, rising interest rates, tenanting problems and damage to the structural integrity of the property. On top of these generic risks, there is another risk over which you have considerable control — the amount of money that you borrow. The more money you borrow, the greater your financial power or investment leverage. It means you have more potential to make money but also a greater chance of losing money.
As an investor, you should understand the impact of these risks to your property investment. Through the MID Investment Property Analysis Application™, you are able to see the impact of some of these risks on your property so you can be aware and manage those risks appropriately.