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I knew someone who had a fantastic business as an owner-driver of a concrete truck. He purchased two investment properties but when the recession came, his business declined and the banks foreclosed on the mortgage. Does this mean that buying rental property is only for those with a secure income?

by Guest737  |  11 years, 1 month(s) ago

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I knew someone who had a fantastic business as an owner-driver of a concrete truck. He purchased two investment properties but when the recession came, his business declined and the banks foreclosed on the mortgage. Does this mean that buying rental property is only for those with a secure income?

 Tags: banks, business, buying, concrete, declined, fantastic, foreclosed, income, investment, mean, mortgage, ownerdriver, properties, property, purchased, recession, rental, secure, truck

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  1. Guest737

     What is a secure income? No job is 100% safe and the precautions you take with your investment properties are commensurate with the degree of risk you attach to your current employment. For example, a government employee with a seemingly "secure" job may only need to have cash in the bank, access to a lot of credit cards and a "check-book" type mortgage. On the other hand, a self-employed truck driver should take all the above steps as well as disability insurance, income-replacement insurance and possibly mortgage repayment insurance. Don't let the prospect of losing your job prevent you from undertaking a loan for a rental property. Simply take all the necessary precautions in case the unexpected happens.

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