. If, as it sounds, you are buying it purely in the hope that its capital value will rise in future, then that's not investment at all, it is speculation, pure and simple.
An investment is something that gives you a regular income. Speculation (which many people mistook for investment during the boom) is about rising and falling capital values.
Hi RIAD_BSC.
I understand the points you are making and agree with your definitions. However, without the potential for capital appreciation, is purchasing investment properties a waste of time for the small-time investor/speculator? The reason I am asking is that I spoke to my father-in-law about this over the weekend. He had a number of properties that he sold circa 2004/2005 and said to me that apart from the capital appreciation he enjoyed, he was hard pushed to make any money at all from property given the work involved. Tenants leaving a house in a state, non-payment of rent, furniture being replaced etc etc. I would be interested from seasoned property inverstors such as Oldnick to reply here if they could.....if you ruled out any potential capital appreciation, all things considered, is property investment worth it for a small time investor (ie someone who still works at something else and does not benefit from economies of scale as someone owning say 50 properties)
Thanks,
Firefly.