These days, we all know someone who seems to have a made a bundle out of rental property. But will it continue? If you do wish residential property investment, the Shape of Money has put together a number of resources to assist you.

As an alternative to investing directly in property, consider avoiding some hassles and minimizing some risk by investing indirectly through other residential property investment vehicles, such as Unit Trusts.

Advantages of residential property investment

• Expenses, including depreciation on the property and interest on your borrowings, are tax deductible.
• You make money as the value of the property increases.
• You can leverage your investment.
• You get rental income.
• For people who can't save, paying off a mortgage is an enforced savings programmed.

Risks of residential property investment

• Interest rates could rise.
• The property could be untenanted for a period of time.
• You could get "bad" tenants.
• It could take up a lot of your personal time.
• House prices could remain static, or even fall.

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