Property investment is often described as ‘safe as houses’. Yet there are risks, for example:

A lender can ask us to repay the mortgage unexpectedly and we may not be able to sell, or sell for enough to cover the mortgage.
If the investment property is mortgaged with the same bank as our own home, there is the risk that the bank could sell both properties if we run into difficulty with paying either mortgage.
We might need, for some reason, to sell the property at a time when it has dropped in value, and be left still owing the lender money after the sale.
Interest rates may increase, so the money we make from the property is reduced.
Paying off the mortgage as fast as we can reduces these risks.


Terry Rota