Property can produce losses through weak income, unexpected costs or a fall in value. Housing type alone does not determine the outcome.
Test operating resilience
Allow for vacancy, repairs, insurance, rates, strata and finance. Review building condition and cash reserves before purchase. Houses and units can perform differently between places and periods, so an undated national comparison is not sufficient evidence.
Plan for an exit
Include sale costs and possible tax in the return calculation. A building inspection has limitations and renovation may reveal further work. Use appropriately qualified trades and confirm approvals. Do not rely on rising prices to compensate for an asset that is difficult to hold.
