Investing in property has always been considered a fairly stable mid to long-term investment, as renting can earn a good income on a monthly basis and if the property is bought and sold later, it can make a considerable profit, particularly if research has been made into the area, such as transport, education and leisure facilities

Risk and return

• The amount of rent you can charge varies according to a number of factors, including wider market trends outside your control. Rents are not guaranteed.If you can’t find tenants – or if you can’t charge the rent you expected – you might not be able to cover your mortgage repayments.
• If house prices fall, the value of your property is likely to fall as well. You might not be able to sell it for as much as you hoped.
• If you have to sell and the sale price doesn’t cover the whole mortgage, you’ll have to make up the difference.
• Major repairs or difficult tenants might increase your costs – and trouble – unexpectedly.
• If the housing market does well, you might be able to sell your property for a profit.